The country where it costs $120K to own a car, any car

Singapore’s cost to own and drive a new vehicle has reached record highs.

According to the small but wealthy nation's Land Transport Authority [PDF ↗], it cost S$106,000 (AU$122,900) on average to have the right to own and use a vehicle in October 2023, by bidding for a Certificate of Entitlement (COE).

It was the cheapest price for a ‘Category A’ vehicle with up to 1.6 litres of engine displacement and 97kW of power.

And, that’s before paying registration fees.

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For ‘Category B’ vehicles with an engine larger than 1.6 litres, the bids went up to S$150,001 (AU$173,900) to obtain a COE.

This represents a significant increase from a year ago when Category A bids cost an average of S$81,089 (AU$94,000) and Category B at S$110,000 (AU$127,500).

The COE only lasts for 10 years.

The lucky country?

Whereas Singapore’s system of high vehicle taxes and bidding for COEs are designed specifically to discourage people from driving – like the 65% levy on cigarettes here – Australia's embrace of motoring means it is obviously far less strict.

Locally, mandatory on-road costs – which includes registration, stamp duty and compulsory third-party insurance – and dealer delivery fees usually add a couple of thousand dollars to the vehicle price.

The controversial Luxury Car Tax (LCT) is also tiny when compared to Singapore’s COE, where the right to own a vehicle alone can cost the same as a high-end luxury car.

How many cars are in Singapore compared to Australia?

Recent data shows the per-capita car ownership rate in Singapore is approximately 149 cars per 1000 people [↗], with slightly less than 1,000,000 cars on the road.

In sprawling Australia, where cars are often a necessity as much as a privilege, that number blows out to 782 – with over 20,000,000 registered vehicles. [↗]