Why is owning a car in Singapore so expensive?
A vehicle can only be registered with a Certificate of Entitlement, which is bought at auction and gives the right to own a car for ten years. That certificate, plus registration fees and duties, usually exceeds the price of the vehicle itself.
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How it works
Certificate quotas are set to control the vehicle population, and bidding results are published for each category and exercise. Road usage is charged electronically on congested roads and expressways at published rates, and parking is charged separately.
Commonly mixed up with
Certificate cost is often treated as a tax refundable on sale. Part of the value can be recovered when deregistering early, under the published formula, but it is not a deposit.
Why is owning a car in Singapore so expensive?
| Knowledge, Singapore | Big city topics |
|---|---|
| Short answer | A vehicle can only be registered with a Certificate of Entitlement, which is bought at auction and gives the right to own a car for ten years. That certificate, plus registration fees and duties, usually exceeds the price of the vehicle itself. |
| How it works | Certificate quotas are set to control the vehicle population, and bidding results are published for each category and exercise. Road usage is charged electronically on congested roads and expressways at published rates, and parking is charged separately. |
| Commonly mixed up with | Certificate cost is often treated as a tax refundable on sale. Part of the value can be recovered when deregistering early, under the published formula, but it is not a deposit. |
| Last reviewed | 2026-08-08 |
Short questions
- What is a COE?
- A ten-year right to register and own a vehicle, bought at auction.
- Are results published?
- Bidding results are published for each exercise and category.
- Is road pricing separate?
- Electronic road pricing is charged separately at published rates.
- Can I use a foreign licence?
- Conversion rules and validity periods are published by the authorities.
- Is car sharing available?
- Car sharing and ride hailing operate as licensed services.
Sources
More in this track
- How does renting a home in Singapore work for a newcomer?
- Can a foreigner buy property in Singapore?
- How does healthcare work in Singapore for foreigners?
- What school options do expatriate families have in Singapore?
- What drives the cost of living in Singapore?
- Which everyday city rules are enforced in Singapore?
- What has to be in place before moving to Singapore?
These pages explain how the rules work and link the authority that owns them. They are not legal, tax or immigration advice, and amounts and thresholds change, so open the source before you act.
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