Singapore is known for having some of the world’s highest car prices. This report provides a comprehensive overview of current car prices in Singapore, covering both new and used vehicles. It includes examples of popular models with their prices, a breakdown by vehicle type (sedans, SUVs, EVs, etc.), recent market trends, and the key factors influencing car prices (like COE, taxes, and policies). All prices are in Singapore dollars (SGD) and reflect conditions as of 2024–2025.
New Car Price Ranges in Singapore
Buying a new car in Singapore is very expensive. As of 2025, even the most affordable new models cost well above S$100,000, primarily due to high taxes and the Certificate of Entitlement (COE) fees. In fact, industry research in 2025 could not find any brand-new car priced below S$140,000 . The days of buying a new sedan for under S$50k are long gone – today’s buyers must budget well into six figures for any new car. COE prices (the cost just for the right to own a car) have been extremely high, often exceeding the base cost of the car itself .
Cheapest new models: As of mid-2025, the lowest-priced new cars (usually small hatchbacks or compacts) start around S$140k–$150k. For example, the Opel Mokka-e Electric (compact EV) is about S$143,500 , and a Suzuki Swift 1.2 Mild Hybrid hatchback costs around S$149,888 . Other “budget” options include the Kia Stonic 1.0 Hybrid SUV (~S$156,999) and BYD Dolphin EV (~S$158,388) – all well above S$150k despite being entry-level models.
Mainstream sedans and SUVs: Popular family sedans like the Toyota Corolla Altis (1.6L) are approximately S$172k–$181k new . A newly launched Toyota Camry Hybrid (mid-size sedan) is about S$246,888 with COE . Compact crossover SUVs, which are very popular, also sit in this range – for instance, a Honda Vezel (1.5L) is around S$146k–$152k from parallel importers , and a Toyota Harrier Hybrid (2.0L SUV) is about S$216k–$234k . Mid-sized Japanese SUVs like the Subaru Forester e-Boxer go for roughly S$189k–$197k .
Electric vehicles (EVs): EVs are becoming more common, with models across various price points. The Tesla Model 3 sedan ranges from about S$189k for a base version up to ~$258k for the Performance model . The Tesla Model Y crossover is roughly S$205k–$250k depending on configuration . More affordable EVs like the Chinese-made BYD Atto 3 (compact SUV) cost around S$170k–$174k , and the small BYD Dolphin is ~S$158k as noted above. Despite some government incentives for EVs (discussed later), their upfront prices are still largely on par with equivalent gasoline models due to the high COE and taxes.
Luxury and high-end cars: Luxury car prices in Singapore are stratospheric. A Mercedes-Benz E-Class or BMW 5 Series typically costs on the order of S$300k–$400k when new (varying by model/trim). Flagship luxury sedans can be double that: for example, a new Mercedes-Benz S-Class S320L starts around S$400k+ . Ultra-luxury models easily break the million-dollar mark – the Mercedes-Maybach S-Class was listed around S$1.12–$1.48 million including COE . Sports cars and exotics (Ferraris, etc.) similarly cost anywhere from S$800k into the millions. These eye-watering figures are a result of heavy taxes on high-OMV vehicles and the added COE cost in Singapore.
Examples – New Car Prices (Popular Models):
New Car Model
Vehicle Type
Approx. Price (SGD)
Suzuki Swift 1.2 Hybrid
Compact Hatchback
~S$149,888 (entry-level new car)
Toyota Corolla Altis 1.6
Sedan (Compact)
~S$172,000 – $180,000
Honda Vezel 1.5 (Parallel Import)
SUV (Compact)
~S$146,000 – $152,000
Tesla Model 3 (Standard/Performance)
EV Sedan
~S$189,500 – $258,000
Toyota Harrier 2.0 Hybrid
SUV (Mid-size)
~S$216,000 – $233,000
Mercedes-Benz S-Class (S320L to S560)
Luxury Sedan
~S$412,000 – $597,000
Mercedes-Maybach S-Class
Ultra-Luxury Sedan
~S$1.12 – $1.48 million
Table: Price examples for new cars in 2024–2025. Ranges may reflect different trims or COE fluctuations. All prices cited include COE unless otherwise noted. As shown, even mass-market models cost well above S$150k, while luxury vehicles can cost several hundred thousand dollars or more .
Used Car Price Ranges in Singapore
The used car market in Singapore offers relatively lower prices, but used cars are still expensive compared to other countries. High COE costs prop up used car values as well, especially for younger used cars. In general, buying second-hand can save a significant amount versus new, though savings vary widely depending on the car’s age, remaining COE, and market conditions.
General price range: Used car prices can range from as low as around S$20k–$30k (for very old cars near the end of their COE) up to over S$100k (for recent models or those with a long COE remaining). For instance, a 9- to 10-year-old small car with only months left on its COE might be found in the tens of thousands of dollars. One example noted that a Mazda CX-5 SUV with under 2 years of COE left still costs about S$32,000 on the used market . By contrast, a relatively new used car (just 1–3 years old) can still command well above S$100k, since it includes a COE obtained during the recent high-price era .
5-year-old vs new comparison: A concrete example illustrates the savings: A brand-new 2025 Toyota Corolla Altis 1.8 Elegance costs about S$178,888 (including COE) . A 5-year-old 2020 Corolla Altis with ~5 years of COE remaining might be listed around S$85,000 . In this case, going used could save roughly S$90k, about half the cost of new, while still providing 5 more years of usage . The used car’s annual depreciation (~S$8k/yr) is also lower than the new car’s (~S$10k/yr) in that scenario . This demonstrates how buying a mid-life used car (with COE remaining) can be far more economical up-front than buying new.
Prices by age of car: Generally, the older the car and the less COE it has left, the cheaper it is. Cars nearing the 10-year mark (when COE expires) are the cheapest: some “COE cars” (older than 10 years, on a renewed COE) or cars about to deregister can indeed be found for S$10k–$30k. However, many buyers avoid such cars due to imminent COE renewal costs and potential maintenance issues on very old vehicles. More popular and reliable models also hold value better. For example, a 2020 Honda or Toyota will cost more than a 2020 model from a less in-demand brand, even if similar age. A 3- to 5-year-old Japanese family car today might resell in the ballpark of S$60k–$100k (depending on model and remaining COE), which is still roughly half the price of a new one due to depreciation and a partially used COE.
Luxury used cars: Higher-end cars depreciate faster in absolute dollar terms, but can still be expensive used. For instance, a 7- to 8-year-old Mercedes-Benz S-Class sedan (originally very costly) can still sell for around S$100k if it has a couple of years of COE left . If a luxury car was first registered during a period of very high COE prices (e.g. 2022–2023), its used price will reflect that embedded COE cost – meaning even as a used vehicle it won’t be “cheap” unless the COE is nearly expired . Buyers need to be mindful that a used car from a high-COE era might still carry an expensive COE portion in its price.
Examples – New vs Used Price Comparison:
2025 Toyota Corolla Altis (New): ~S$178,888 including COE . 2020 Toyota Corolla Altis (Used): ~S$85,000 (5 years COE left) . Savings by buying 5-year-old: ~S$93k cheaper upfront, with slightly lower annual depreciation .
2016 Mazda CX-5 SUV (Used, COE expiring ~2026): ~S$32,000 with <2 years COE remaining . (New equivalent CX-5 would be ~$180k+ in 2025; this older used one is cheap but would need COE renewal or scrapping in 2 years.)
2023 Honda Vezel (Used, ~2 years old): might resell around S$110k–$130k (if COE was ~$90k when new). Since it’s “almost new,” the discount vs. new is modest. Nearly-new used cars (under 2–3 years) often lose 20–30% of their value from new , but with COE premiums baked in, the absolute prices can still be over $100k. If the price difference from new is small (under ~$20k), buyers often prefer to pay a bit more for brand-new .
2014 Toyota Corolla Altis (COE renewed 5 years): e.g. one with a fresh 5-year COE extension could be around S$60k–$70k (this includes paying ~$40k+ for the COE renewal). Older cars that have renewed COEs (“COE cars”) have no PARF rebate value (explained later), so their market price is mainly the COE value plus a bit of body value. These tend to be cheaper than “PARF cars” (under 10 years old) .
In summary, used cars can save a lot of money especially if you choose a model around 4–6 years old or an older car with a short remaining COE. But when COE prices are high, both new and used prices rise in tandem . The demand for used cars increases when new car costs become prohibitive, which in turn pushes up secondhand prices. Conversely, if COE premiums fall, used car prices tend to soften as well. Buyers must also consider maintenance: an older used car may incur higher upkeep costs (often $1.5k–$3.5k per year for cars 8+ years old) , and will eventually require COE renewal or scrapping at the 10-year mark.
Price Breakdown by Vehicle Type
Car prices also vary by vehicle segment. Below is a breakdown of typical price ranges in 2024–2025 for different vehicle types, with examples:
Sedans (Saloon Cars)
Sedans remain a popular category in Singapore, spanning affordable Japanese models to high-end European luxury saloons. For mass-market sedans (Toyota, Honda, Mazda, etc.), current new prices generally range from about S$150k to S$200k. For example, a Toyota Corolla Altis (1.6L family sedan) costs roughly S$173k new , and a Honda Civic 1.5 Turbo is in a similar ballpark (around S$160k–$180k, depending on variant). Slightly larger models like the Toyota Camry 2.5 Hybrid are closer to S$200k+ (the Camry Hybrid starts at ~$247k with COE) . Premium mid-size sedans such as the BMW 3 Series or Mercedes-Benz C-Class fall in the S$250k–$300k range when new, since they belong to COE Category B (larger engines) which have higher COE costs.
On the used market, sedan prices cover a wide range. A 5-year-old Japanese sedan (e.g. 2018 Corolla or Mazda3) might cost on the order of S$70k–$90k used, whereas a 9-year-old unit could be under S$40k. A popular model like the Corolla tends to hold value due to reliability and demand, but even it depreciates to perhaps ~40–50% of new price by the 5-year mark . Luxury sedans depreciate more steeply: a 5-year-old BMW or Mercedes sedan could be well under 50% of its new price (still easily >S$100k, but much less than new). As always, remaining COE years heavily influence used prices for sedans.
SUVs and Crossovers
SUVs have surged in popularity in Singapore, as elsewhere. Compact crossovers and SUVs (like the Honda Vezel/HR-V, Toyota Yaris Cross, Hyundai Kona, etc.) are priced similarly to sedans or slightly higher. New, these tend to be around S$150k–$180k for mass-market brands. For example, the Honda Vezel 1.5 is roughly S$150k new (via parallel import) , and the Toyota Yaris Cross (1.5L compact SUV) would be in the high-$150k range. A Mazda CX-5 (2.0L) or Honda CR-V (larger compact SUVs) might cost around S$180k–$200k new, depending on specs.
Larger mid-size and full-size SUVs are considerably pricier. A Toyota Harrier 2.0 Hybrid (mid-size, 5-seater SUV) is about S$215k–$233k new . The Toyota RAV4 Hybrid was recently listed around S$257,888 with COE . Seven-seater family SUVs or MPVs like the Toyota Fortuner or Honda Odyssey often exceed S$200k as well. European luxury SUVs (BMW X3/X5, Mercedes GLC/GLE, etc.) will commonly be S$300k and up when new, given their high OMV and Category B COE. For instance, an entry-level Mercedes GLC or BMW X3 can be ~S$280–$320k new, while a Range Rover Sport or BMW X5 might be S$400k+. Ultra-luxury SUVs (Bentley, Lamborghini Urus, etc.) easily cross S$800k–$1M+.
On the used market, SUVs hold their value relatively well if they are popular models, since demand is strong. A 5-year-old Honda Vezel (which is very sought-after) might still fetch S$80k–$100k used, given its desirability as a practical crossover. On the other hand, large thirsty SUVs or less common models might depreciate more. As an example, a first-generation 2014 Honda Vezel (with a renewed COE to 2029) could still be around S$60k, illustrating how even a decade-old popular SUV isn’t “cheap” in Singapore. In general, expect used SUV prices to mirror sedan trends: older than ~8 years can drop under S$50k, but 3-5 year old ones are often between S$80k and S$150k depending on make and COE remaining.
Electric Vehicles (EVs)
Electric vehicles have gained momentum, and the government has introduced incentives to encourage EV adoption (discussed in a later section). In 2025, EV prices range from about S$150k on the low end to well over S$300k for premium models, similar to conventional cars in equivalent segments.
At the more affordable end, the BYD Dolphin (a compact EV hatchback) at ~S$158k is one of the cheapest new EVs . Other entry-level EVs include models from Chinese brands like Dongfeng, Aion, and Ora, priced in the S$140k–$160k range . For example, the Aion S (ES) electric sedan starts around S$147,988 , and the quirky Dongfeng ER30 (Box) EV was about S$148,888 – these are among the very few new cars under S$150k in 2025.
Mainstream EV models are typically in the S$170k–$250k bracket. The Tesla Model 3 and Model Y are prominent examples, at roughly S$190k–$250k depending on configuration . The BYD Atto 3 (compact SUV EV) is around S$170k , and the Kia EV6 or Hyundai Ioniq 5 (if available) would be in the high S$200k range.
Luxury EVs are very costly due to high OMV and COE Category B. A Tesla Model S Plaid or Audi e-tron GT can easily be S$500k or more in Singapore. The Porsche Taycan variants range roughly from S$400k up to S$700k+. Even the Mercedes EQC or BMW iX3 (electric SUVs) hover around S$300k+. In short, EVs do not magically avoid Singapore’s high costs – they are subject to the same COE and ARF structure, though they receive certain tax rebates which help a bit (e.g. a 45% ARF rebate up to S$15k for new EVs) .
On the used side, EVs are still a new segment so data is limited. However, early indications are that EVs depreciate similarly to equivalent petrol cars. A 2-year-old used Tesla might sell for maybe 10–20% less than new (reflecting mileage and one less owner of COE). As more EVs reach the second-hand market, their resale will also depend on battery longevity perceptions. Government incentives on first registration (like the ARF rebate) are not transferable, so a second-hand EV’s price will factor in the remaining COE and any loss of that initial rebate. Still, popular EVs like Teslas tend to hold value relatively well at the moment, due to strong demand and long wait times for new orders.
Market Trends and Recent Pricing Changes
Car prices in Singapore have been on a general upward trend in recent years, mainly driven by rising COE premiums. There have been some notable fluctuations and policy changes recently:
COE premium surge: In late 2023, COE prices hit all-time highs. In October 2023, the Category A COE (for smaller cars up to 1600cc/110kW) peaked around S$106,000, and Category B (larger cars) hit about S$150,000 – record levels that pushed new car prices to unprecedented heights. This caused a big spike in car ownership costs, and priced many buyers out of the new car market.
Early 2024 slight dip: After the late-2023 peak, COE prices saw a modest correction. The government increased the COE quota supply slightly in early 2024, which helped ease premiums. By May 2024, Cat A COE had come down to about S$102,501, and Cat B around S$116,988 (vs the higher Oct ’23 levels) . In fact, at one point in early 2024, Cat A COE briefly dipped under S$70k in one bidding exercise , providing temporary relief. This led to some marginally lower new car prices in early 2024 compared to late 2023 (contributing to a slight easing of auto-related inflation) . However, demand remained robust and prices were still historically high.
2024–2025 stability around high levels: Through late 2024 and the first half of 2025, COE premiums have largely stayed around the S$90k–$120k range for cars. Category A has hovered roughly in the high-$80k to low-$100k region, while Cat B has been in the ~$110k–$120k range . This means car prices in 2025 remain extremely high – roughly on par with the highs of a decade ago (the last peak was in 2013) and just slightly below the 2023 peak. As a Straits Times analysis noted, any drop in car prices from the peak has been modest, and vehicles are still a significant inflation driver . In mid-2025, COE premiums were still floating around the $100k mark for all car categories . Car dealers have adjusted their selling prices accordingly, keeping new car price lists high.
COE Premiums Trend (2024–2025): COE prices remain near record levels. The chart above shows Category A (small cars), B (big cars) and E (open category) COE price trends from mid-2024 to Q1 2025. After a brief dip in late 2024, premiums rose again – by early 2025 Cat B and E were still climbing (~5% higher in Q1 2025 vs late 2024), while Cat A saw a slight 4–5% dip on average . In absolute terms, all categories hovered around the S$90k–$120k range. These persistently high COEs have kept car selling prices high.
Government intervention: In response to the affordability issue, authorities have stepped in with policy tweaks. Notably, the Land Transport Authority announced it will inject additional COE quotas into the market from 2025 onwards. Specifically, starting in February 2025, up to 20,000 extra COEs will be added over the next few years (above the usual quota) to help increase supply and stabilize premiums . This is a significant policy move aimed at cooling the red-hot COE market. In late 2024, the COE quota for cars had already been bumped up by a few percent quarter-on-quarter , and the larger injection from 2025 is expected to gradually ease prices (though as of mid-2025 its effect is not yet fully felt).
Buyer behavior: The sustained high prices have influenced consumer behavior. Many would-be buyers are delaying car purchases or turning to the used market. Some are choosing to extend their current car’s COE (renew for 5 or 10 years) instead of buying a new car, leading to more “COE cars” on the road. Indeed, with COE renewal for 10 years costing ~$90k or more in 2024–25 , owners have to weigh that against even higher costs of a new purchase. Another trend is that since a huge portion of the cost is fixed (COE), some buyers “upgrade” their choice of car – reasoning that if they must pay ~$100k for a COE anyway, they might as well get a more premium model to pair with it . This has led to stronger demand for luxury marques and better-equipped models, possibly contributing to dealers focusing more on higher-end cars (and some cheaper models being discontinued due to thin margins) .
EV and policy trends: The push for Electric Vehicles is a notable trend. While EVs are still a small fraction of cars, Singapore’s incentives (ARF rebates, etc.) and the introduction of more affordable EV models from China have started to slightly diversify the market. The price gap between EVs and ICE cars has narrowed for certain models due to rebates (e.g. an EV might effectively net out a bit cheaper than a similar petrol model after rebates). Additionally, the government’s policy that new car registrations must be cleaner-energy models from 2030 is on the horizon, which may gradually influence car buyers’ choices and the types of models dealerships offer. However, in 2025 this has not yet had a major impact on pricing, other than the existing incentive schemes.
Overall, the market trend can be summed up as “high and relatively stable prices, with slight relief in supply expected.” Car ownership remains a luxury in Singapore, and recent years’ price records reinforce that. Prospective buyers are watching COE announcements and policy changes closely, as these will determine if prices moderate in the coming years or continue their upward trajectory.
Factors Influencing Car Prices in Singapore
Several unique factors contribute to Singapore’s steep car prices. The key drivers are government policies designed to control vehicle population and manage road usage. Below we outline the most notable factors:
Certificate of Entitlement (COE)
The COE is often the single largest component of a car’s price in Singapore. A COE is essentially a license that gives you the right to own and use a car for 10 years. Every vehicle must have a COE, obtained via a bidding system. Because the government tightly controls the number of COEs (to manage the vehicle population), the price of COEs can be extremely high when demand exceeds supply.
COE price impact: The COE premium is added on top of the actual vehicle cost, and it can exceed the base cost of the car. For example, when Cat B COE was around S$110k–$150k, it could be higher than the cost of a mid-range car’s imported value . In practical terms, if a car’s open-market value is S$30k, after taxes it might be S$60k, but then a S$100k COE will bring the selling price to S$160k+. Thus, COE often constitutes roughly 40–60% (or more) of the total price of a mid-range car in recent years.
COE categories: There are different categories (A, B, etc.) for COEs. Category A is for smaller cars (≤1600cc and ≤130 bhp, now ≤110 kW), Category B for larger or more powerful cars, Category C for commercial vehicles, Category D for motorcycles, and Category E (Open category) usable for any vehicle (often used for luxury cars). Cat E typically tracks Cat B closely or higher. As of mid-2025, COEs for Cat A are around S$90k–$100k, Cat B around S$110k–$115k, and Cat E similar to Cat B . These figures fluctuate in twice-monthly bidding exercises.
Quota system: The high COE prices are a result of the vehicle quota system. The government sets the COE quota based on a targeted zero or low vehicle population growth rate. Currently, the allowed car population growth rate is 0% per annum (since 2018) – effectively capping the total number of cars. The quota available each period mainly comes from deregistrations (vehicles scrapped or exported free up COEs). When fewer people scrap cars, fewer new COEs are available, squeezing supply. In 2020–2022, deregistrations were low (because not many 10-year-old cars were around from earlier low COE years), leading to very tight COE supply and hence record prices. The quota is periodically adjusted; for example, LTA announced a 4% increase in COE quota for Nov 2024–Jan 2025 versus the previous quarter , and a plan to inject additional COEs from 2025 to counter the recent price surge.
COE renewal: After 10 years, a car owner can choose to renew the COE instead of scrapping. The cost to renew is the Prevailing Quota Premium (PQP) – essentially the moving average of the last few months of COE prices . Renewing for 10 years costs the full PQP, while a 5-year renewal costs half. In the current climate, renewing a COE for 10 years can cost on the order of S$90k–$100k (depending on category) . Many owners have been renewing, which keeps older cars on the road but also means they’ve paid a huge sum just to extend the right to drive. A renewed COE car has no residual PARF rebate (see below), so its resale value (as a “COE car”) will be lower – but as used car prices rise generally, even COE cars can fetch significant sums commensurate with their remaining COE rebate value .
In summary, COE premiums are a critical determinant of car prices in Singapore. When COEs rise, both new and used car prices increase across the board (making cars more expensive for consumers) . When COEs fall or quotas expand, it relieves upward pressure on prices. The COE system is the government’s main tool to control car population, and it is also the reason owning a car is so costly – you are paying not just for the car, but for the privilege of having a car on Singapore’s roads.
Taxes and Duties (ARF, Excise, GST)
Beyond the COE, Singapore imposes heavy taxes and duties on vehicles which significantly inflate car prices. Notable ones include:
Additional Registration Fee (ARF): The ARF is a one-time tax paid at registration of a new vehicle. It is calculated as a percentage of the car’s Open Market Value (OMV) (i.e. the base import value of the car). Singapore uses a tiered ARF system: the higher the OMV of the car, the higher the percentage tax. As of 2023, ARF is progressive with steep tiers for expensive cars. For example, OMV above S$80k is taxed at 320% for that portion (increased from 220% in 2023) . The tiers go roughly: 100% of OMV for the first $20k, 140% for the next segment up to $40k, 190% for OMV $40k-$60k, 250% for $60k-$80k, and 320% for any OMV beyond $80k . This means a high-end car with OMV $100k would incur about $180k in ARF alone (e.g. a $100k OMV car pays ~$200k total ARF under the new scheme, but rebate capped – see PARF below) . Mass-market cars typically have OMVs in the $20k-$40k range, so their ARF is often roughly equal to or slightly more than the OMV. Luxury cars with big OMVs pay disproportionately more in ARF – a deliberate policy to tax luxury consumption.
Excise Duty and GST: In addition to ARF, cars are subject to an excise duty (import tariff) of 20% on OMV for standard cars, and then 7% GST (Goods & Services Tax, raised to 8% in 2023) on the subtotal. In effect, one pays tax on tax, as GST applies after adding excise and ARF. By the time you add OMV + excise + ARF + GST, a car’s price is multiple times its OMV. For instance, take a Japanese sedan with OMV S$25,000: excise 20% adds $5k, ARF 100% adds $25k, subtotal $55k, GST 8% adds ~$4.4k, totaling ~$59.4k before COE and dealer margin. Then add a COE of say $95k, and the car ends up ~$155k – roughly six times the OMV. This illustrates how taxes heavily amplify the final price.
PARF (Preferential ARF) rebate: While not a tax, it’s related – when you deregister (scrap/export) a car before 10 years, you get a portion of the ARF back as a PARF rebate. This is 50–75% of ARF depending on age at deregistration (75% if within 5 years, 50% at just under 10 years). However, since Feb 2023 the PARF rebate is capped at S$60,000 maximum . This cap was introduced so that ultra-luxury cars (which pay huge ARF) don’t get an excessively large rebate. For example, previously a car that paid $200k ARF would get $100k back at 9 years; now it would be capped at $60k . The PARF rebate effectively reduces the effective cost if you only keep the car <10 years, and it’s a factor in used car prices: a “PARF car” (under 10 years old) carries the implicit remaining rebate value, whereas a “COE car” (>10 years old) has no PARF rebate, hence lower value . Buyers and sellers factor PARF into pricing – it’s like the residual value backed by the government.
Road tax and others: Singapore also has recurring road taxes based on engine capacity or power, which make owning larger engines costlier each year. For instance, a 3.0L car’s annual road tax is several thousand dollars. Fully electric cars have a revised road tax schedule to be more in line with similar petrol cars (they used to be penalized more for high power, but since 2022 this was adjusted) . While road tax doesn’t affect purchase price, it’s part of the overall cost of ownership that higher-end cars bear more of. Additionally, there’s a tiered surcharge for very pollutive cars (but most modern cars meet standards). The Vehicular Emissions Scheme (VES) can either give a rebate (up to $25k for very clean cars like EVs or hybrids in Band A1) or a surcharge (up to $25k for high-pollution Band C2) . In 2025, the top rebate is $25k (Band A1) and next band only $2.5k – so most petrol cars get $0 or pay a surcharge, whereas many EVs get a $25k rebate which helps offset their price. Dealers usually factor the VES rebate/surcharge into the retail price quotes.
In sum, taxes like ARF and excise can double or triple the base cost of a car . The government uses these taxes both to generate revenue and to promote certain policies (like higher taxes on luxury cars, rebates for cleaner cars). For the consumer, it means even before adding COE, a car in Singapore might already cost 2-3 times what it would in a country with lower car taxes. When you combine COE + ARF + other taxes, it becomes clear why a car that might sell for S$30k in another market ends up at S$120k+ in Singapore.
Government Policies and Regulations
Underlying the COE and tax system are government policies aimed at managing car ownership and usage in Singapore’s land-scarce environment. Several policy aspects influence car prices and trends:
Vehicle population control (Car-Lite policy): The Government’s long-term policy is to limit the growth of the vehicle population and encourage a “car-lite” society with greater use of public transport . Since 2018, the allowable vehicle growth rate for passenger cars has been set to 0%, meaning the total number of cars should not increase. This policy directly results in the COE quota being essentially based only on replacements (deregistrations), not expansion. By strictly controlling supply, it inherently keeps prices high when demand is strong. Investment in public transport and the Electronic Road Pricing (ERP) system for congestion pricing are complementary policies – expensive COEs are meant to make people think twice about owning a car and to reflect the true social cost of adding cars to the road.
COE quota adjustments: As discussed, the government does tweak policies when necessary. In 2024, recognizing the burden of extreme COE prices, the government decided to inject additional COEs into the market (a one-time increase beyond the standard zero-growth quota) . This is similar to what was done in the late 1990s when ERP was introduced, injecting extra COEs to ease the transition . By 2025, up to 20,000 extra COEs will be added over a few years, which is a significant policy shift to alleviate pressure. Additionally, for commercial vehicles there’s still a small allowed growth (0.25% per year) and special early-scrap schemes, but those don’t directly affect private car prices.
Promotion of EVs and cleaner cars: To support environmental goals, the government has rolled out incentives for cleaner-energy vehicles. Key among these is the Electric Vehicle Early Adoption Incentive (EEAI) – from 2021 through 2025, new fully electric cars get a 45% rebate on ARF, capped at S$15,000 (this cap was $20k before 2024). There is also the Vehicular Emissions Scheme (VES) mentioned earlier, which gives up to $25k rebate for low-emission cars (including most EVs and hybrids) . Furthermore, the minimum ARF payable of $5,000 is waived for EVs during 2022–2025 – effectively a small savings for cheap EVs. These incentives can collectively knock up to ~$40k off the upfront price of a new EV (for example, an EV that would owe $30k ARF might get $15k off from EEAI and maybe $25k VES rebate, significantly reducing its net price). The government has also revised rules to favor EVs, like raising the Cat A COE power threshold to 110 kW so that more mass-market EVs qualify for the cheaper category , and lowering road tax for mid-powered EVs . All these policies make EVs a somewhat more attractive proposition price-wise than they otherwise would be, and we see models like the Nissan Leaf, MG ZS EV, etc., being somewhat competitive with their petrol counterparts when incentives are factored in. However, once the incentive period lapses (after 2025) or if quotas tighten, the pricing advantage may change.
Import restrictions and model availability: Another factor is that Singapore is a relatively small market with no local manufacturing, so all cars are imported (hence OMV + costs). The models and trims available, especially through authorized dealers, might be limited. Some buyers turn to parallel importers (PIs) who bring in models or variants not officially sold here, sometimes at different price points. PIs can sometimes offer lower prices for certain models, but also may not include COE in their quotes, etc. The presence of parallel importers does introduce some price competition for popular models (e.g. Toyota Harrier, Honda Vezel are only sold by PIs, not official dealers, and their pricing is market-driven). Nonetheless, all importers face the same taxes and COE costs, so the difference is usually in dealer margins or OMV declarations. The government regulates vehicle safety and emission standards, but otherwise there isn’t price control – it’s an open market subject to the structural costs described.
Financing and ownership costs: While not a direct factor on sticker price, it’s worth noting government rules on financing. Car loans are capped (one can only borrow up to 70% of the car price for cars ≤$20k, or 60% if the car’s Open Market Value is above $20k) . This means buyers must typically pay 30–40% down payment. Interest rates for car loans have risen slightly (around 2.78–3.5% in recent years) , adding to the effective cost. Insurance is also costly given high car values (a young driver might pay >$2k/year insurance) . These factors don’t influence the market price per se, but they affect affordability and demand, which in turn can influence how many people are in the market for a car at any time.
In conclusion, Singapore’s car prices are a product of policy choices to tightly regulate car ownership. The COE system and heavy taxation are intentional mechanisms to limit cars on the road and fund infrastructure. Recent policies show a balancing act: on one hand, keeping cars expensive to discourage congestion and pollution; on the other hand, offering targeted relief (like extra COEs or EV incentives) to address public concerns and encourage transition to cleaner vehicles. Anyone looking to buy a car in Singapore must navigate this complex landscape of COE bidding, taxes, and regulations – which collectively make car ownership a costly endeavor.
Conclusion
Car prices in Singapore in 2025 are extraordinarily high by global standards. New cars range roughly from S$140k for the most basic models to well over S$300k–$500k for luxury vehicles, and even second-hand cars often cost tens of thousands of dollars. The examples provided (Toyota Corolla Altis at ~$178k new vs $85k slightly used , Suzuki Swift at ~$150k , Tesla Model 3 at $200k+ , etc.) illustrate the reality that owning even a humble family car in Singapore requires a large financial commitment.
The breakdown by vehicle type shows that whether it’s a sedan, SUV, or EV, the category itself is less important than the underlying COE category and taxes – a mass-market EV can be cheaper than a luxury petrol SUV, but both will be expensive if they fall under high COE premiums or tax brackets. Market trends indicate that prices are currently near record highs, with slight signs of stabilization due to policy interventions. Importantly, the government’s tight control via COEs and taxes is the defining feature of this market: these factors (COE, ARF, VES, etc.) directly influence prices and are uniquely significant in Singapore .
Consumers should keep an eye on COE trends and policy changes. For instance, the planned increase in COE supply from 2025 may gradually improve affordability if implemented fully . Likewise, those considering an EV should factor in the current incentives which effectively discount the upfront price by up to ~$40k – a window of opportunity before these incentives expire. On the other hand, buyers of high-end cars must contend with the recently raised luxury taxes (320% ARF for the OMV beyond $80k) which significantly push up prices for top-tier models .
In summary, to purchase a car in Singapore requires understanding that you are paying not just for the car, but also for the right to own it (COE) and for various governmental objectives (through taxes and policies). All these components are reflected in the final price a buyer pays. Despite some short-term fluctuations, the overall trajectory has kept car ownership a costly proposition. Prospective buyers are advised to research across official dealerships, online marketplaces, and news sources for the latest prices and to explore options like used cars or COE renewals as more affordable alternatives . With thoughtful planning and timing – and a bit of luck in the COE bidding – one can navigate Singapore’s car market, albeit at a steep cost.
Sources:
Singapore market price data from Sgcarmart (new & used listings)
“Cheapest Cars in Singapore” – DollarsAndSense (May 2025)
“Should you buy a used car?” – AsiaOne/MoneySmart (2025)
LTA and news releases on COE and ARF policies
Channel NewsAsia Budget 2023 report on luxury car taxes
Land Transport Authority (LTA) resources on EV incentives and tax structure
Market trend analysis from Straits Times / Business Times summaries and Sgcarmart editorial content .