How Singapore car costs and taxes really work
A car here is mostly tax, and almost every dollar of it is knowable in advance. This is the money map from the day you buy to the day you switch, with a free calculator at each step so you can put in your own numbers. The more you know, the harder you are to hoodwink.
What you actually pay for in a new car price
The sticker price of a Singapore car is built from a stack of taxes and fees, not the cost of the car itself. It splits into two groups. First, taxes on the imported value of the car.
The Open Market Value, assessed by Singapore Customs from the car's price, freight and insurance. This is the real cost of the car before any tax, and it is usually far below the showroom price.
A flat customs duty charged on the OMV.
Charged on the OMV plus the excise duty. It does not apply on top of the ARF or COE below.
Then, the costs of actually registering the car for the road.
The Additional Registration Fee, the largest tax on most cars. It is tiered on OMV: 100% on the first $20,000, 140% on the next $20,000, 190% on the next, 250% on the next, and 320% on anything above $80,000. A pricier car pays a much steeper share. The ARF you pay is also what your future PARF rebate is based on, so it comes partly back. See your PARF rebate.
The Vehicular Emissions Scheme adjusts the ARF up or down by how clean the car is. From 2026 the bands are A, B, C1, C2 and C3, only fully electric cars still earn a rebate, and surcharges have risen. For cars registered in 2026 the Band A rebate is $22,500 and the dirtiest band, C3, adds a $35,000 surcharge (the 2027 figures differ, so check LTA for your car). A rebate lowers the ARF you pay; a surcharge is added on top. Fully electric cars also get the EV Early Adoption Incentive, which takes 45% off the ARF (capped at $7,500 for cars registered in 2026) and ends after 31 December 2026.
The Certificate of Entitlement, the right to keep a car on the road for 10 years, won in a fortnightly bidding exercise. The quota premium you pay is often the single biggest line, and it moves with demand every two weeks. Read the COE guide.
A modest fixed fee to register the vehicle.
This is why two cars wearing the same badge can cost wildly different amounts: OMV, COE and VES move independently of each other.
What it costs you every year
Road tax. A petrol car is taxed by engine capacity, so a bigger engine sits in a higher band. An electric car is taxed on its power in kilowatts, plus a flat Additional Flat Component of about $700 a year that stands in for the fuel duty it never pays at the pump. A petrol-electric hybrid pays the higher of the two methods, and diesel and CNG cars have their own special tax. Once a car passes 10 years old a surcharge is added, starting at 10% and stepping up to 50% beyond 14 years, a deliberate nudge to retire old cars. Work out your road tax.
Depreciation. This is the real cost of driving, and it dwarfs petrol and road tax. It is what you paid minus what you will get back when you deregister, divided by the years you keep the car. A $150,000 car that returns $40,000 at the end of its COE costs about $11,000 a year just to own, before a drop of fuel. See your depreciation per year.
Loan interest.Dealers love to quote a low flat rate, but the flat rate charges interest on the whole original loan for the entire tenure, even as you pay it down. The true effective rate (EIR) is often close to double the flat rate. MAS caps a car loan at 70% of the price when the car's OMV is $20,000 or less, and 60% above that, with a maximum tenure of 7 years. Always compare on EIR, not the flat rate. Find your real interest rate.
What you get back at the end
The good news that dealers least want you to know: a large chunk of that upfront tax comes back. When you deregister a standard private car still on its original 10-year COE, LTA pays you two rebates.
A percentage of the ARF you paid, set by the car's age when you deregister: 75% at 5 years or younger, stepping down through 70, 65, 60 and 55% to 50% in the 10th year, and nil after 10 years. The newest cohort (cars whose COEs come from the second February 2026 bidding exercise onward) is on a lower schedule, 30% down to 5%, capped at $30,000. Earlier cars were uncapped before 2023 and capped at $60,000 from 2023.
The part of your COE you have not used: the quota premium you paid, times the unused period (prorated to the day), divided by 120.
Added together, these are your guaranteed deregistration floor, the least your car is worth, because LTA pays it even to scrap the car. No honest dealer offer should ever sit below it. Calculate your deregistration value, or value your whole car.
This applies to PARF-eligible private cars: registered new in Singapore (or qualifying imported used cars), on an original 10-year COE, and never laid up. Cars on a renewed COE, Category E quirks, export within two years, and off-peak cars follow different rules, so confirm your exact figure with an LTA enquiry.
The overtrade trick
When you change cars, a dealer can dangle a generous-looking trade-in for your old car while quietly giving little or no discount on the new one. The big trade-in number feels like a win, but it is often just a discount moved from one side of the deal to the other.
The figure that actually matters is the net cost to change: the new car price, minus any discount, minus your trade-in, plus any loan you still owe on the old car. Compare that single number across dealers and the trade-in headline stops mattering. A high trade-in is perfectly fine when the net cost wins. Check your net cost to change.
Do the math on your own car
Every number above becomes your number with one of these free tools. No sign-up.
Value my car
The market price, the guaranteed deregistration floor, and a straight verdict on any dealer offer.
PARF and COE rebate calculator
Your guaranteed deregistration value: the PARF rebate plus the unused COE, prorated to the day.
Road tax calculator
Six-month and annual road tax by engine size or power, including the EV flat component and the age surcharge.
EV vs petrol running-cost calculator
Compare charging, petrol, road tax and maintenance before you decide what is cheaper to run.
Depreciation calculator
The real cost of driving: what the car loses each year after the money you get back at the end.
Monthly ownership cost calculator
Add depreciation, road tax, fuel, insurance, parking, maintenance and ERP into one monthly cost.
Car loan EIR calculator
The true effective rate hiding behind a flat-rate car loan, and what it adds up to in dollars.
Overtrade calculator
See past a generous-looking trade-in to your real net cost to change cars.
COE renewal calculator
Renew your COE or deregister? See the real cost to keep your car per year.
Car cost calculator
Break a new car price into OMV, tax and COE, and see how little is the car.
Common questions
- What is ARF?
- The Additional Registration Fee, the single largest tax on most Singapore cars. It is charged as a tiered percentage of the car's Open Market Value (OMV), rising from 100% on the first $20,000 of OMV to 320% on the portion above $80,000.
- Do I get money back when I sell or scrap my car?
- Usually yes. A standard private car still on its original 10-year COE earns a PARF rebate (a slice of the ARF you paid) plus a COE rebate (the unused part of your COE). LTA pays this when you deregister the car, even if you scrap it, so it sets the floor under any sale or trade-in.
- Why is depreciation called the real cost of a car?
- Because it dwarfs petrol and road tax. Depreciation is simply what you paid minus what you will get back, spread over the years you keep the car. A pricey car that gives little back can cost over ten thousand dollars a year just to sit in your carpark.
- Is a high trade-in offer a good deal?
- Not on its own. A dealer can offer a generous trade-in while quietly removing the discount on the new car. Judge the net cost to change cars, not the trade-in number, and compare that one figure across dealers.
- What is the difference between a flat rate and the effective interest rate (EIR)?
- A flat rate looks low because it charges interest on the full original loan for the whole tenure, even as you pay the loan down. The EIR is the true cost and is often close to double the advertised flat rate. Always compare loans on EIR.
- Do electric cars pay road tax in Singapore?
- Yes. An EV is taxed on its power output in kilowatts, plus a flat Additional Flat Component that stands in for the fuel duty an EV does not pay at the pump. A hybrid is taxed the higher of the engine and power methods.