Why a Toyota Camry Hybrid costs about $183,000 USD in Singapore
Singapore is renowned for its harmonious coexistence between urban landscapes and green spaces. Achieving this balance involves high regard for nature and strict rules that sometimes require significant lifestyle adjustments from its citizens. The efforts are so extensive that they can't be contained in an article. Therefore, I would like to share their story in a series. In this first installment, we'll delve into how Singapore manages car ownership to lower carbon footprints and protect the environment.
Certificate of Entitlement (COE): A Barrier to Excess
To own a car in Singapore, potential buyers must bid for a Certificate of Entitlement (COE), an ownership right that currently costs an astounding $106,800 USD (an estimate of today's market). This does NOT include the cost of the car. Anyway, this system ensures that the number of cars on the road is controlled, significantly reducing traffic congestion and environmental impact. For perspective, a Toyota Camry Hybrid costs about $183,000 in Singapore, including the COE, registration fees, and taxes, compared to just $28,855 in the U.S.
The COE Bidding Process
COE bidding occurs twice a month and prices fluctuate based on several factors:
Market demand
Category-specific demand (different sizes of cars, bikes, etc.)
Government policies
Economic conditions
Supply quotas
The Reality of Car Ownership
Despite the high costs, some Singaporeans still own cars, but many opt for public transport due to the country's small size—it takes only about an hour to drive across the entire nation. The COE is specific to one car, meaning that owning multiple cars requires multiple COEs. However, the COE can be transferred to a different vehicle under the same owner within its validity period. However, you can't transfer the COE of standard passenger vehicles (Class A & B) and motorcycles (Class D) from one person to another.
Renewing the COE
When a COE expires, it can be renewed by paying the Prevailing Quota Premium (PQP), which is slightly cheaper than a new COE. As of June 2024, the PQP for Category A cars (up to 1600cc & 97KW) is $89,634, for Category B cars (above 1600cc or 97KW) it’s $101,008, and for motorcycles, it is $9,600. The PQP allows for a 5-year or 10-year extension.
A Comparative Perspective
Given these costs, the registration fees in the U.S. seem negligible. This stringent car ownership regime encourages the use of public transportation, cycling, and walking, contributing to Singapore's sustainable urban environment.
Singapore's innovative approach to managing car ownership exemplifies how policy can drive environmental sustainability. This is just one facet of the nation's comprehensive efforts to balance urban development with nature conservation. Stay tuned for more insights in the next articles of this series.
4/13/2023
Sources:
https://www.motorist.sg/coe-results
https://www.reuters.com/.../singapore-certificate-own.../
https://www.sgcarmart.com/articles/guide-coe-renewal
