What are the cost to own a car in Singapore?
Cars are not only effective in helping us reach our destinations efficiently but they are also conveniently reliable because they are more flexible and better as compared to public transport. Depending on how much you earn, there are specific cars that will be suitable for you. For instance, if you earn an average level of income, you will expect to afford a normal saloon car in comparison to another person who earns a six-figure salary. Apart from the actual price of a car, there will be other costs that you will have to pay for and they include, insurance, parking fees, servicing, road tax, ERP and petrol, and interest cost. Below is a simple but well-detailed points of what it will cost you to own a car in Singapore depending on your affordability.
The actual cost of buying various cars in Singapore
For this example, we will use a Toyota Altis as an average and popular car that many car owner will look for. A Toyota Altis will cost around $109,188 including Certificate Of Entitlement (COE) and this is the price you will get the car at. However, the cost will not stop there and there are other costs that you will have to pay to own a car and use it and such costs are as follows.
Unless you buy this car and pay for it in full, otherwise you will have to incur the average interest cost. This will of course depend on the time that you will take to pay for the car. The longer you take to pay, the higher the interest and it is always better if you opt to pay your loan at a shorter time. In this case, if you pay at least forty percent of your Toyota Altis, and with the rest at 2% per annum, then you will incur an interest cost of $ 9231.
Car insurance is another cost that will be inevitable when you plan to own a car. Car insurance is mandatory in Singapore and the government requires you to have car insurance. The premium that you pay for your insurance will be determined by the coverage you want, your driving history, the Make and Model, No Claim Discount, any accident claims over the last 3 years, occupation , marital status and your age. On average you will be expected to $1,500 for insurance per annum.
When you own a car, there are other costs such as maintenance, fuel, parking fees, fines, road tax and many more. The road tax for a Toyota Altis in Singapore is $742 per year. When you own a car, other costs such as parking fees fuel, and service will be determined by how frequently you use your car.