Buying a car in Singapore could be one
of the most confusing and frustrating
things you ever do. The first thing
you need to get to grips with is a few
acronyms that you will hear time and time again.OMV – Open Market Value: this is roughly the
base value of the car at the time of import. Singapore
Customs places an OMV on each vehicle, and this
determines many of the additional taxes.ARF – Additional Registration Fee: On top
of the $220 basic Registration Fee (RF), you also
have to pay an ARF, which is 100 percent of the
OMV and upward (the higher the OMV, the higher
the ARF), plus a 20 percent excise duty. In addition,
you need to pay a 7 percent Goods and Services
Tax (GST), and road tax. Road tax is reduced if
you purchase a hybrid or electric car, or a car that
runs on natural gas.COE – Certificate of Entitlement: To own a
car, you need a document known as a COE, which
is valid for ten years. The government uses the COE
system to control the number of cars on the road,
and only releases a limited number each year. You
can bid for your own COE – tenders are called for
twice each month – or you can leave it up to your
dealer. The cost of a COE rises or falls according
to demand; it can range from a dollar to $100,000!#3
CarAlthough the cost of buying a car in Singapore
will initially seem much higher than at home,
bear in mind that when you sell, export, or scrap
your car, you will recoup the unused portion of
the COE. If you sell your car after two years, for
example, your COE will still be valid for eight
years, and you will recoup 80 percent of its cost.
You will also recoup between 50 and 75 percent
of the ARF. Financing options can be surprisingly
affordable, with typical interest rates between 2.25
percent and 2.75 percent per annum. Loans can
be repaid over ten years, with a low deposit, if any,
required up front. All vehicles in Singapore must
carry at least third-party insurance.ADVANTAGES OF CARS
It definitely makes life easier with two small
kids. We bought a car with five years left on
the COE, using sgcarmart.com to browse.
It’s a personal choice and depends on
where you live. We have a car and decided
to lease, as at the time we didn’t know how
long we were going to be here.
We haven’t needed one. Transport is cheap
and public transport is plentiful.
When you have kids, it’s worth having your
own vehicle so you have more control and
flexibility when shuttling little ones around.TIPS FOR TAXIS
Use a seatbelt.
Download all of the apps, like Grab and
Comfort.
If you have kids, Taxi Baby is useful for
answering questions you have about
travelling with kids, and sells all the
necessary safety equipment like car seats.
Use the Comfort booking app and make
sure you tell your driver if you want to go via
a specific route.
It’s always helpful to have an idea of the
route you want to take.The current
COE (as of
June 2018) for
a Category
A vehicle is
$36,426SINGAPORE HACKS50 CITY GUIDE 2018