Rules in Owning and Driving a Car in Singapore
Owning a car in Singapore is not as easy as choosing your favourite model and paying for it with auto loans or cash. There are many things to consider, from the rules of the country to taxes and other charges you have to pay.
Here is an overview.
1. You can apply for auto loans. Auto loans are easy to get as there are many lenders which you can choose. You need to compare them to know which one will provide you the best deal.
The requirements in applying for auto loans include citizenship or permanent residence. However, if you’re a foreigner, you will need to present your employment pass and looking for a local guarantor. You also have to be at least 21 years of age.
2. Bid for a COE. The certificate of entitlement makes Singapore different from other countries in terms of car acquisition. As the country is very small, the government takes drastic steps to control traffic and COEs are given to would-be vehicle owners.
To acquire a COE, you need to offer a bid. Bidding can be done in various ways including the usage of ATMs. Should you receive a COE, it means you can drive your vehicle for up to 10 years (the life of a COE). After it has expired, you have the option to either rebid or sell your car.
COEs don’t come cheap, so you need to prepare for it.
3. Pay your vehicle taxes. If you have an existing car which you wish to bring it to Singapore, or you prefer an imported vehicle, then get ready to pay more than 40% of customs duty. This is an ad valorem. Registration fees can be pretty steep. For a private vehicle, the registration fee is $1,000 and company vehicles are worth $5,000.
4. All car owners pay road taxes. Road taxes are also imposed to vehicle owners and they need to be renewed. In order to obtain a renewal, you need to receive an inspection certificate.
Adapted from MoneyLine.
