5 Reasons Why You Should NOT Own a Car in Singapore

Singapore is known for its efficient public transport system and urban planning. While owning a car may seem appealing, there are several compelling reasons to reconsider this option. Below are five key reasons why you might choose not to own a car in Singapore.

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1. High Ownership Costs

Purchase Price: The initial cost of buying a car can be quite high due to the Certificate of Entitlement (COE) system, which can often seen in the ridiculous price of new vehicles.

Certificate of Entitlement (COE): To own a car, you must obtain a COE, which can cost tens of thousands of dollars depending on market demand.

Road Tax: Every vehicle in Singapore is required to pay an annual road tax, which is calculated based on the engine capacity of the car. This can range from a few hundred to several thousand dollars each year.

Insurance: Car insurance is mandatory and can vary widely depending on the coverage you choose. Comprehensive plans may cost more but provide better protection.

Maintenance and Repairs: Regular servicing, tire replacements, and unexpected repairs can accumulate over time. Even routine maintenance can be costly, especially for luxury or older models.

Fuel Costs: Fuel prices fluctuate, and owning a car means you need to budget for regular refueling. Depending on your driving habits, this can become a significant monthly expense.

Parking Fees: In Singapore, parking can be expensive, especially in urban areas. Monthly parking permits or daily rates can add a substantial amount to your overall expenses.

ERP Charges: The Electronic Road Pricing (ERP) system charges drivers for using certain roads during peak hours. This can lead to additional costs depending on your driving routes.

Depreciation [Hidden Cost]: Cars in Singapore depreciate quickly, which means that their resale value drops significantly over time. This can lead to financial losses if you decide to sell your car later.

2. Efficient Public Transport System

Singapore’s public transport system is renowned for its efficiency and reliability. The Mass Rapid Transit (MRT) and bus services are designed to provide seamless connectivity across the island. This efficiency is evident in several ways:

• Punctuality: Trains and buses run on time, minimizing waiting periods and making it easy to plan your journey.
• High Frequency: During peak hours, trains arrive every few minutes, ensuring that you don’t have to wait long to catch a ride.

Comprehensive Coverage

Singapore boasts an extensive network of buses and trains that cover almost every part of the island. This comprehensive coverage means you can easily access most locations without the need for a personal vehicle:

• Accessibility: Even remote areas are connected, allowing you to reach places like Sentosa or the far corners of the island with ease.
• Last-Mile Connectivity: Many bus routes are designed to connect MRT stations to residential areas, making it convenient to get to your final destination.

Affordability

Public transportation fares are relatively low compared to the expenses associated with owning a vehicle. Here’s a breakdown of why public transport is more budget-friendly:

• Lower Costs: The cost of owning a car includes expenses such as fuel, insurance, parking fees, and maintenance. In contrast, public transport fares are minimal, with options like the EZ-Link card providing discounts for frequent users.
• No Hidden Costs: When you use public transport, you avoid unexpected expenses like repairs or spikes in fuel prices, allowing for better financial planning.

Convenience

With frequent services, it’s often quicker to take public transport rather than deal with traffic congestion. 

• Avoiding Traffic: Singapore is known for its traffic jams, especially during peak hours. Using public transport allows you to bypass this hassle, as buses and trains have dedicated lanes and routes.
• Multitasking Opportunities: While on public transport, you can read, catch up on work, or simply relax—something you can’t do when driving.

3. Traffic Congestion

Limited Space

• Densely Populated City: Singapore is one of the most densely populated cities in the world, which means space is at a premium. The limited road space can lead to overcrowded streets, making driving less enjoyable. Picture a scenario where you’re trying to find parking in a busy area—often, you may have to circle around multiple times before finding a spot.
• Parking Challenges: Not only is parking limited, but it can also be expensive. Many residential and commercial buildings charge high rates for parking, and finding a free parking spot can be nearly impossible in busy districts. This can add to the overall cost of owning a car, making it less practical.

Time Consumption

• Longer Commutes: Research has shown that driving during rush hour can take significantly longer than using public transport. For example, while a bus or MRT might take 30 minutes to reach your destination, driving could take an hour or more due to traffic. This means you could spend more time on the road than necessary, eating into your personal time.
• Public Transport Efficiency: Singapore’s public transport system is designed to be efficient and reliable. Trains and buses run frequently, allowing you to plan your journey with ease. For instance, if you need to get from one end of the island to the other, you might find that taking the MRT is not only faster but also more convenient than dealing with the hassle of driving.

4. Parking Challenges

Scarcity of Parking Spaces

• Limited Availability: In many urban areas of Singapore, finding a parking spot can be a daunting task. The high population density means that there are simply not enough parking spaces to accommodate all vehicles. This often leads to frustration as drivers circle around looking for a spot.
• High Demand Areas: Popular districts such as Orchard Road or Marina Bay can make parking even more challenging. During peak hours, parking spaces may be fully occupied, forcing drivers to park far from their destination or even abandon their plans altogether.

Costs Associated with Parking

• Accumulating Parking Fees: Even when you do find a parking space, the costs can add up quickly. Many public parking facilities charge hourly rates, and if you’re parked for an extended period, it can lead to significant expenses. For example, parking in a commercial area range from S$2.25 to S$3.50 per 30 minutes during peak hours; if you’re there for eight hours, that’s $56! 😏
• Parking Coupons and Electronic Payment: In addition to hourly rates, many areas require the use of parking coupons or electronic payment systems, which can be confusing for new drivers. Misunderstanding the payment system could lead to fines or penalties, adding to the overall cost of car ownership.

5. Environmental Considerations

Carbon Footprint

• Significant Emissions: Cars are a major source of carbon emissions, contributing to air pollution and climate change. In urban areas like Singapore, where traffic congestion is common, the emissions from vehicles can be particularly high. By choosing public transport, you can significantly reduce your individual carbon footprint. For instance, taking the MRT or buses instead of driving can lead to lower emissions per person.
• Public Transport Benefits: Singapore has an efficient public transport system that includes buses, MRT (Mass Rapid Transit), and even taxis. By using these modes of transport, you contribute to a collective reduction in emissions. For example, if 10 people take the MRT instead of driving, that’s 10 fewer cars on the road, leading to less congestion and lower overall emissions.

Sustainability Initiatives

• Government Support: The Singaporean government actively promotes sustainable living practices. This includes initiatives aimed at reducing the reliance on cars, such as expanding public transport options and developing walking and cycling paths. For example, the Park Connector Network allows residents to cycle or walk through parks and green spaces, making it easier to choose eco-friendly options.
• Encouraging Active Transportation: With the government’s push for a greener city, residents are encouraged to adopt healthier modes of transportation. Walking and cycling not only reduce carbon emissions but also promote physical health. Imagine a scenario where you cycle to work instead of driving; not only do you contribute to a cleaner environment, but you also get exercise, which can improve your overall well-being.

And so…

While owning a car might offer some conveniences, the high costs associated with ownership combined with Singapore’s efficient public transportation system make it less appealing for many residents. So do think thrice before “investing” in a car. You could probably bring up 2 more kids without owning a car in Singapore.