Car Loan and COE Calculator

Why a car here costs what it costs

The price on a Singapore showroom windscreen is mostly not the car. It is built up from the Open Market Value — what the vehicle actually cost to bring into the country, as assessed by Singapore Customs — plus a stack of taxes and the Certificate of Entitlement, and then the dealer's margin on top of all of it.

Excise duty is 20% of the Open Market Value. GST of 9% is charged on top of that. The Additional Registration Fee is the largest tax of the three and is charged in slices of Open Market Value: 100% of the first SGD 20,000, then 140%, 190% and 250% on each next SGD 20,000, and 320% on anything above SGD 80,000. There is also a registration fee of SGD 350.

How the price is assembled

1. Start with the Open Market Value.
2. Add excise duty at 20% of that value.
3. Add GST on the value plus the excise duty.
4. Add the Additional Registration Fee, worked out slice by slice.
5. Add the registration fee.
6. Add the COE quota premium for the category, and then whatever margin and options the dealer is charging.

The COE is the part nobody can predict. It is won at open bidding held twice a month, it entitles you to keep the car on the road for 10 years, and at the end of that period you either deregister the car or renew by paying the Prevailing Quota Premium — the moving average of prices over the last 3 months.

The bit that surprises buyers: the ARF is not linear

Because the Additional Registration Fee steps up so sharply, two cars whose Open Market Values differ by a modest amount can differ enormously in price. A car whose value falls in the top band attracts 320% of that portion in tax alone, before GST and before the COE. This is why a slightly more powerful variant of the same model can cost far more than the specification difference suggests, and why comparing list prices tells you very little about the cars themselves.

The rate slices used here are those for cars registered with COEs obtained from the second February 2023 bidding exercise onwards. Cars registered before that sit on an older, flatter scale.

Why your quotation will differ

Financing is regulated separately from the taxes. A motor vehicle loan may not exceed 70% of the price where the Open Market Value is SGD 20,000 or less, and 60% where it is more, and it may not run for longer than 7 years. Most Singapore car loans are also quoted at a flat rate, meaning interest is charged on the whole original amount for the whole term rather than on the reducing balance — the same quoted percentage costs substantially more that way.

This calculator excludes road tax, insurance, the vehicle emissions schemes and the surcharge on imported used cars, and it does not credit any rebate you might receive when the car is eventually deregistered. Dealers also bundle items into the margin very differently, so ask for a written breakdown before comparing two quotations.

Common questions

Why is the COE not a fixed price? Because it is allocated by bidding against a quota announced before each exercise. The premium is whatever the market clears at, twice a month.

Is the Additional Registration Fee charged on the COE too? No. It is charged on the Open Market Value only, in slices. The COE is added afterwards as its own line.

How long can I finance a car for? Up to 7 years, and no longer, whatever the dealer suggests.

Do I get anything back at the end of the 10 years? Possibly, through the rebates available on deregistration, which depend on the car's age and its Additional Registration Fee. Those are not included here.

Vehicle taxes and the COE mechanism are set by LTA, GST by IRAS, and the loan limits by the Monetary Authority of Singapore. Confirm the current figures before you sign.