This country has the highest car prices on the planet

Singapore holds the title for the highest car prices on the planet, and the numbers are wild.

In the US, a brand-new Toyota Corolla costs around $22,000, but in Singapore, the same car can set you back over $130,000.

No, the Corolla isn’t made of gold, nor is it filled with upgrades.

Instead, government rules and sky-high fees are the reason why everyday cars are priced as luxury items in Singapore.

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Why it costs so much to own a car in Singapore

In most places around the world, buying a car is a relatively simple affair.

You figure out what kind of car you can afford, go to a dealership, and pick the car you want.

In Singapore, buying a car means more than just paying for the vehicle itself. There, you must also purchase a Certificate of Entitlement (COE).

This certificate gives you the legal right to own and use a car for 10 years.

The government introduced the COE system in 1990 to control the number of vehicles on the road in a city-state known for its limited land area and dense population.

As of the time of writing, a COE for a small car costs $101,102 (about $79,000). But the price is higher for larger or powerful vehicles.

In fact, the price of a COE has been trending upwards in recent years, having almost doubled from 10 years ago.

So, even if the car itself costs only $25,000, the COE can quadruple the total purchase price.

And once that 10-year COE expires, you’ll need to either renew it (for another hefty fee) or scrap the car.

In addition to the COE, Singapore slaps on multiple taxes and fees when you buy a car.

There’s the Additional Registration Fee (ARF), which is a form of luxury tax based on the car’s Open Market Value (OMV).

The ARF rate can range from 100 percent to 320 percent of the car’s value, depending on its cost.

Where Americans generally pay a few thousand dollars in tax on a car, Singaporeans might pay tens or even hundreds of thousands.

All these fees added together make Singapore the single most expensive country to buy a car, by a large margin.

If you’re floored by what you’ve just read, know that you’re not alone.

Back in 2013 – when car prices in Singapore were lower – the Fast & Furious cast did an interview with local media, who asked the stars to guess how much cars were in Singapore.

You can watch the full video here. But long story short, Vin Diesel was not expecting a Toyota Prius to cost $154,000 in Singapore.

The price of supercars in Singapore

If buying everyday cars costs so much money, just imagine buying a Ferrari in Singapore.

A brand new Ferrari 296 GTB, for instance, has a base price of around $330,000 in the United States.

In Singapore, you can grab a pre-owned 2023 model for $1 million, and the eye-watering sum doesn’t even include the COE.

This enormous price difference makes Singapore by far the most expensive country to buy a car, especially for high-end models.

It’s not uncommon for supercar owners in Singapore to spend more on taxes and fees than on the car itself.

And while you may think that having the highest car prices means demand for cars would be really low, think again.

In Singapore, cars are still very popular, so much so that there’s a 15-story vending machine where you can buy supercars.

Singapore’s car ownership policies may seem extreme, but they’re designed to keep traffic under control and reduce pollution.

To be fair, for the most part, locals don’t really need a car.

The country has one of the best public transport systems in the world, in addition to having the best airport in the world.

Singapore is just slightly smaller than New York City, so for most residents, car ownership is a luxury.

The next time you complain about how much cars are costing these days, just be thankful you aren’t living in the country with the highest car prices in the world.

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