The legal bit
The Monetary Authority of Singapore (MAS) sets restrictions on car loans, then the government adds all sorts of other acronym related costs that we will now explain as simply and quickly as possible.
How are cars priced in Singapore?
When you buy a car on the Little Red Dot, this is what you are paying for:
- Standard Registration Fee = $140
- Open Market Value (OMV) – takes into account the purchase price, freight, insurance and all charges incurred in to the import, sale + delivery of the car to Singapore. This price is decided by Singapore Customs.
- Excise Duty – you pay 20% of Open Market Value (OMV) of the vehicle.
…A quick pause to say how much we’re enjoying these acronyms!
- Goods & Services Tax (GST) - when you buy a new car, you will pay GST of 7% on the combined value of the vehicle’s OMV + Excise Duty.
- Certificate of Entitlement (COE) – You pay one of five categories from A to E.
…What, there’s more?…
- Additional Registration Fee (ARF) - is a tax, ranging from 100% to 180% imposed upon registration of a vehicle. It is calculated based on a percentage of the OMV of the vehicle.
- Carbon Emissions-Based Vehicle Scheme (CEVS) - Depending on your car’s carbon emission, you can get a rebate or a surcharge, from $5,000 to $20,000.