$76,000 Car Ownership! Yes, That's Actually Happening In Singapore And This Doesn't Include The Car

Singapore, noted for its efficiency and technology, is an extremely expensive place to purchase a car.? ?

In this article, we will look at the astronomical prices of car ownership in Singapore, beginning with a whopping $76,000 fee merely to have the privilege of owning a car without even considering the cost of the?vehicle?itself.?

Why Is There A 10-Year Certificate Of Entitlement?

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According to Land Transport Authority numbers, a 10-year Certificate of Entitlement—a licence that residents of the affluent city-state must obtain before they can even acquire a vehicle—now costs a record minimum of $76,000 (104,000 Singapore dollars), more than four times what it did in 2020.

That only gives you the right to buy a normal Category A car?with a modest to medium-sized engine of 1,600 cc or less.

Those looking for anything larger or more flashy, such as an SUV, will have to pay $106,630 (146,002 Singapore dollars) for a Category B licence, up from $102,900 (140,889 Singapore dollars).

Then there's the cost of the vehicle itself to consider.

What Is A Certificate Of Entitlement?

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Singaporeans who want to buy a car must go through a bidding process for a COE, which is part of a system implemented in 1990 to limit the number of automobiles in the city-state.?

A COE grants the right to possess a vehicle that can be driven on the?road?for ten years.

While the price of COEs fell in 2020, it has since risen dramatically due to increasing economic activity following the epidemic, according to Reuters.

When Was The Quota System Implemented In Singapore?

The quota system was implemented in 1990 to reduce traffic and emissions in a space-constrained city-state with a population of 5.9 million but an amazing public?transportation?network.

It has pushed automobiles out of reach for the typical Singaporean, where the Department of Statistics reports that the median monthly household income in 2022 will be $7,376 (10,099 Singapore dollars).

Local car salesman Ricky Goh said he "nearly fainted" when he learned about the price increase.?

"Sales have already been dismal. This, on top of everything else, will be disastrous for business," he told CNN.

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Wong Hui Min, a mother of two, believes she should reconsider her dependency on her car, despite the fact that she uses it primarily for family purposes.

"I'm always running around, taking my kids to and from school, as well as other activities like swimming lessons and tuition." I require my?automobile. "It's just not convenient for me to take taxis or shared rides everywhere," she explained.?For some, the announcement is just the most recent financial setback.

What Do People In Singapore Think Of Living There?

Locals claim that living in Singapore, already the world's most expensive city, has become excessively expensive in recent years due to continuous inflation, growing public housing expenses, and a faltering economy.

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However, proponents of the quota system claim that it has helped Singapore avoid the kind of traffic jams that plague other Southeast Asian capitals such as Bangkok, Jakarta, and Hanoi.

Those who cannot purchase a Certificate of Entitlement might take advantage of Singapore's large public transportation system, they say.

If that fails, there's still the option of renting a motorcycle, with licences costing only $7,930 (10,856 Singapore dollars).

What do you think about it? Do let us know in the comments.

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