Singaporeans need a record RM364,389 for the right to buy a car

SINGAPORE – The cost for the right to buy a car in Singapore has reached a record high for large automobiles and risen across the board for all categories.

In Singapore, such rights are acquired by buying certificates of entitlement, or COEs, issued by the government and they represent costs incurred before purchasing the actual vehicle. Premiums on open category permits, which may be bought for any vehicle but end up being used mainly for large cars, increased to a record S$114,001 (RM364,389) in July’s second round of bidding, according to the latest data.

The bids in the open group, called Category E, set a new record for the second consecutive time. COE bids for large and powerful cars in Category B also reached their highest level at S$110,003.

The costs are surging because Singapore’s government is attempting to curb the number of vehicles on the streets and forces buyers to bid for a limited number of permits. The added charges can deter potential buyers, but the model is also one that might appeal to other cities seeking to reduce pollution.

The premiums on smaller cars – or those 1,600cc and below with horsepower not exceeding 130 bhp as well as electric vehicles up to 110kW power rating – rose to S$78,899. – Bloomberg