The study of mathematics has been likened to a blind man in a dark room looking for a black cat that isn't there. A bit like buying a car in Singapore then. What’s worse is, buying a car here doesn't simply involve math, it involves acronyms like ARF, COE and MAS.
If you are starting to get a feeling of impending doom or signs of a panic attack – relax. Imagine you are a water lily floating in the breeze on a beautiful lake. Then breathe. We’ve got this covered.
Here is Budget Direct Insurance's easy - everything you need to know in one place - guide to how cars are priced in Singapore.
For visual learners like us
Here’s a handy infographic courtesy of thenewsavvy.com -
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.
So now you know, be careful whom you tell! For more tips on buying new and used cars in Singapore look out for further posts in this series.
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