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Car Cost in Singapore: Ownership Expenses and Cheap Car Servicing Tips
Introduction: The True Cost of Convenience
It’s hardly a news flash: owning a car in Singapore is expensive. In fact, Singapore remains one of the costliest places in the world for car ownership. But with strategic planning and the right knowledge, many car owners find ways to make their investment more manageable — and even cost-effective in the long run.
In this comprehensive guide, we break down the cost of owning a car in Singapore, from upfront registration fees to car servicing costs. Whether you're a first-time buyer or a seasoned driver, here’s what you need to know.
1. Initial Purchase Costs
The car price in Singapore is significantly inflated by regulatory fees and market demand. The purchase price includes:
- Open Market Value (OMV): The base price of the car before taxes.
- Certificate of Entitlement (COE): Grants the right to own a car for 10 years. COE prices can easily exceed S$100,000.
- Registration Fee: A flat fee (currently S$350).
- Additional Registration Fee (ARF): A tiered tax based on OMV:
| OMV Tier | ARF Rate |
|---|---|
| First $20,000 | 100% |
| Next $20,000 (i.e. $20,001–$40,000) | 140% |
| Next $20,000 (i.e. $40,001–$60,000) | 190% |
| Next $20,000 (i.e. $60,001–$80,000) | 250% |
| Above $80,000 | 320% |
- Excise Duty: 20% of OMV.
- GST: 9% on top of the above.
- Vehicular Emissions Scheme (VES) and Electric Vehicle Early Adoption Incentive (EEAI): Together, these can provide rebates of up to S$30,000 for eligible EVs (Band A1 + EEAI), though this reduces to S$20,000 from 2027.
A standard Toyota Corolla Altis costs about S$178,888 – S$188,888 (including COE), though this can vary depending on model, category, latest COE price, and vehicle features.
Figures are indicative and subject to change. Refer to LTA for the latest fees, taxes, and incentives.
2. Car Loans and Interest Costs
Most car owners finance their vehicles. According to MAS regulations:
- Max tenure: 7 years
- Typical loan amount: ~S$60,000
- Average interest rate: ~2%–3% p.a (higher for used cars or COE renewal loans)
For example, at an interest rate of around 2.8% p.a., a borrower would pay about S$815/month on a S$60,000 loan over 7 years. It’s vital to compare packages and check for transparent pricing when applying.
3. Insurance Costs
Car insurance is mandatory. Premiums average S$1,473 annually for a driver profile of a 45-year-old male with 5 years of experience and 0% NCD. Factors influencing your cost include:
- Age, gender, occupation
- Driving history
- Type of coverage (e.g. comprehensive, third-party)
Being adequately covered ensures peace of mind for unexpected breakdowns or accidents.
4. Road Tax
Road tax depends on engine capacity. Here’s a quick guide for petrol vehicles:
| Engine Capacity (cc) | Annual Tax |
|---|---|
| EC < 600 | About S$314 |
| 601 < EC < 1,000 | S$314 – S$390 |
| 1,001 < EC < 1,600 | S$391 – S$742 |
| 1,601 < EC < 3,000 | Up to S$2,382 |
| EC > 3,000 | Over S$2,383 |
The monthly cost of owning a car in Singapore includes this recurring fee, often bundled with insurance in estimates.
5. Fuel, Parking, and ERP Costs
For a vehicle with fuel economy of 15.4 km/L and petrol prices at S$2.70/L:
- Annual average petrol cost: ~S$3,070
- ERP charges: Vary depending on time and location, estimated at S$30–S$60/month.
- Season parking (e.g. HDB): ~S$110/month.
These add significantly to your car expenses in Singapore, particularly for those commuting daily.
6. Car Servicing and Maintenance Costs
Routine car servicing is essential to keep your vehicle in top condition and avoid expensive repair bills later. Based on a Toyota Corolla Altis:
A regular service at 10,000 km or 30,000 km costs about S$253, while a major service at 20,000 km or 40,000 km costs about S$368. Over five years (100,000 km), the average total cost comes to around S$2,640, or about S$528 per year. This does not include other costs such as brake fluid, oil changes, and brake checks.
Want to Save Money? Choose the Right Car Workshop
Routine car servicing doesn’t have to drain your wallet — if you choose the right workshop.
Tip: While dealership workshops may offer convenience and quicker access to original parts, reputable third party workshops can provide cheap car servicing Singapore drivers are looking for, often with transparent pricing and good workmanship.
Just ensure the workshop you choose uses genuine parts, follows a proper maintenance schedule, and offers upfront pricing to avoid unpleasant surprises.
7. Miscellaneous Costs to Consider
- Tyres, batteries, and wear & tear items.
- Car accessories and optional modifications like spray painting.
- Unexpected repairs due to accidents or component failures.
- Depreciation and loss of PARF rebate if the car isn't deregistered before 10 years.
Conclusion: Is Car Ownership Worth It?
When calculating how much a car costs in Singapore, consider both upfront and ongoing expenses. From registration fees and ARF to car servicing at Singapore rates and fuel economy, the total ownership cost over 10 years can exceed S$250,000.
Still, many drivers choose this route for the convenience, comfort, and freedom it brings. With careful budgeting and the right workshop, car ownership in Singapore doesn’t have to break the bank.
