Singapore drivers now need to pay £88,000 for permission to own a car
In Singapore, individuals are required to pay £88,000 as a fee for car ownership, excluding the actual cost of purchasing a vehicle.
- The cost of car ownership exceeds the average income of a household.
Drivers in Singapore must now pay £88,000 as a prerequisite for car ownership, without considering the actual vehicle expenses.
When the registration fees and taxes are added to a Toyota Camry Hybrid, the total amount comes to £151,000. This is five times higher than it would be in the UK and more than double the average household salary.
The city-state has gained a reputation for being the costliest location globally to own a car, as exorbitant prices make it unaffordable even for the majority of middle-class inhabitants.
The escalating cost of owning a car is primarily due to the significant rise in the price of 10-year certificates of entitlement (COEs).
Singaporeans who wish to drive in the city need to bid for a COE – of which only around 950,000 are available – with one now costing four times more than three years ago.
Singaporeans now need to fork out £88,000 for the right to own a car, even before accounting for the cost of the car itself
COEs were launched in 1990 to control the number of vehicles on the road.
The total cost of a Toyota Camry Hybrid, including all factors, is more than double the average yearly income of £72,716 for UK households.
However, the interest in driving in rural areas may be decreasing due to ongoing inflation and a slowing economy. This has resulted in some Singaporeans selling the cars they purchased at low COE prices in order to gain a profit.
Sociologist Tan Ern Ser suggested that it is necessary to adjust one’s aspirations from pursuing the “good life” to being content with a “good enough life.”
You can drive across Singapore in under an hour.
