Drivers struggling with the highest car prices on Earth own cars that they can't bring home

Singapore is famous for being the country with the highest car prices in the world, but lately, residents are innovating by going across the border.

Sick of the sky-high prices of cars, and desperate to scratch the itch of owning and driving a car, Singaporeans are crossing over to neighbouring Malaysia for their vehicles.

But it goes further than you think; they aren’t just buying their cars overseas, they’re keeping them overseas as well.

To put into perspective how wild this is, imagine Americans having to drive and store their cars in Mexico, because the cost of owning a car is simply too high in the US.

SBX CARS – View live supercar auctions powered by Supercar Blondie

The highest car prices in the world will shock you

The reason is pretty straightforward for locals, but shocking to outsiders.

A combination of local taxes, fees, and import regulations ensures that the country has the dubious honor of having the highest car prices on the planet.

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

For luxury vehicles, the gap is even more dramatic, putting the dream of owning a sports car or premium SUV out of reach for most residents.

In order to fulfil their dreams of car ownership, some Singaporeans have started to buy luxury vehicles in neighbouring Malaysia instead.

Geography plays a key role in this workaround, as the border is merely a short drive away from most parts of the city-state, making this feasible for locals.

Singapore citizens also have the most powerful passport in the world, making it easy to travel abroad with few restrictions.

36-year-old Iylia Kwan is one such driver who makes use of this workaround.

While he drives a Toyota Corolla Atlis in Singapore, he bought a 4.8L Porsche Cayenne SUV in Malaysia to cruise along the neighbouring highways.

He paid about $11,800 for a 2009 model three years ago, which would have cost him about $46,500 in Singapore.

For his birthday this year, he bought a Mercedes-Benz E-Class saloon, telling local media that driving these luxury cars in Malaysia was an ‘affordable indulgence too good to resist’.

There are also gas savings for driving overseas

Singaporeans who choose to drive in Malaysia also save in other ways.

Gas prices in the city-state aren’t cheap, costing about $7.60 per gallon, compared to $2.34 per gallon in Malaysia.

Of course, buying the cars is the easy part.

Where do Singaporeans store their cars when they return home?

After all, if they try to bring their cars back to Singapore, they will be hit with the high fees that made owning a car unfeasible in the first place.

Well, a few entrepreneurs have spotted the opportunity, offering warehouse facilities that are a short drive away from the border.

Amenities provided include 24-hour security, weekly engine warm-ups, and monthly car washes.

The rise of secure parking facilities helps to further boost the trend of Singaporean motorists keeping their cars in Malaysia, as the city-state continues to edge towards being a car-lite society.

While cars have begun getting more expensive in the US, at least you probably don’t need to buy and store your car in Mexico just yet.

DISCOVER SBX CARS: The global premium car auction platform powered by Supercar Blondie