By The Big Buy desk · Last verified 4 October 2026
What a car really costs in Singapore starts with two numbers that dwarf the car itself. The Certificate of Entitlement (COE) cost $131,890 for a Category A car and $133,000 for Category B at the exercise that closed on 23 September 2026. The Additional Registration Fee (ARF) is charged on the car’s open market value (OMV) in tiers, from 100% of the first $20,000 up to 320% of anything above $80,000. On top come excise duty, GST and a registration fee, then a car loan, insurance, road tax, parking, ERP, fuel or charging and servicing for ten years. And since February 2026, far less of the ARF comes back when you scrap the car.
A car can make Singapore life easier, especially with young children or elderly parents. Seeing the whole bill first helps you choose with your eyes open.
Quick facts
- COE (23 September 2026): Category A $131,890; Category B $133,000.
- ARF: 100% of the first $20,000 of OMV, 140% of the next $20,000, 190% of the next $20,000, 250% of the next $20,000 and 320% above $80,000.
- PARF rebate (cars with COEs from the second February 2026 exercise): 30% of ARF if scrapped within five years, falling to 5% at nine to ten years, capped at $30,000.
- After 10 years: no PARF rebate and no COE rebate; renew the COE or scrap.
- Loans: MAS caps how much of a car’s price you can borrow and for how long; check current limits with your lender.
- Running costs: insurance, road tax, parking, ERP, fuel or charging, servicing and repairs, every year.
Where the price tag comes from
| Component | What it is | How it is set |
|---|---|---|
| OMV | The car’s import value | Assessed by Singapore Customs |
| Excise duty and GST | Taxes on the imported car | A percentage of OMV and of the taxable value |
| ARF | The big registration tax | Tiered on OMV, from 100% to 320% |
| Emissions adjustments | Rebate or surcharge for cleaner or dirtier cars | LTA’s emissions and EV schemes |
| COE | The 10-year right to own the car | Open bidding, twice a month |
| Dealer margin and extras | Distributor costs, warranty, accessories | Set by the dealer |
A worked example
Take a Category A car with an OMV of $35,000. The ARF is 100% of the first $20,000 ($20,000) plus 140% of the remaining $15,000 ($21,000): $41,000. Add the 23 September 2026 Category A COE of $131,890, and OMV, ARF and COE alone come to $207,890, before excise duty, GST, the registration fee, emissions adjustments and the dealer’s margin. Spread over the COE’s 10 years, those three items alone are about $20,789 a year, or roughly $1,732 a month, before a single litre of petrol. If you scrap the car within five years, the 2026 schedule returns only 30% of the ARF, $12,300 here, plus the unused part of the COE.
The costs that keep coming
- Loan interest: most buyers finance part of the car; interest is charged on the full loan for its whole tenure, so a longer loan costs more in total.
- Insurance: comprehensive cover is the norm for new and financed cars; see our guide to car insurance and the no-claim discount.
- Road tax: based on engine capacity or power, paid every six or twelve months; see how road tax is calculated.
- Parking: a season parking charge at home and per-use charges elsewhere; see parking charges.
- ERP: road pricing on busy roads, now via the on-board unit; see ERP 2.0.
- Fuel or charging, servicing, tyres and repairs.
The WahLiao Verdict
Judge a car by its monthly cost over ten years, not its sticker. Add the depreciation (price minus whatever comes back at the end) to loan interest, insurance, road tax, parking, ERP and fuel, then divide by 120. If that number is more than you would spend on taxis, private-hire rides and the odd rental, keep your money working elsewhere. If the car earns its keep in time and family sanity, buy the smallest one that does the job, and pay down as much upfront as you comfortably can.
Questions people ask
Why did my car’s scrap value fall so much?
Budget 2026 cut the PARF rebate for cars with COEs from the second February 2026 exercise. Our PARF and COE rebate guide shows all three schedules.
Is a higher-OMV car much more expensive?
Yes, steeply. At an OMV of $65,000, the ARF is $98,500, because each slice above $20,000 is taxed at a higher rate.
Should I renew my COE after 10 years?
Compare the Prevailing Quota Premium with the cost of a new car’s COE and the car’s condition. Renewing keeps a known car but gives up any rebate.
How are COE prices set?
By open bidding against a quota. See COE explained.
Sources: LTA, ARF tiers and 2026 PARF rebate schedule; LTA, COE results; Motorist, September 2026 COE results. Worked examples are the desk’s own arithmetic. The Big Buy explains; it does not advise.
Read next: COE Explained · PARF and COE Rebates · Back to The Big Buy
For what’s worth it this week, with the bill shown, read The WahLiao Week.
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