Would you pay $76,000 to buy a license to buy a car?

[bengangmo]

In Singapore, there is a system called "Certificate of Entitlement" (COE)

This allows you to buy and own a car for 10 years (it is pegged to the car, not the person)

Today the price for the COE hit $76,000 USD. On top of this the excise duty on a car is $100% of the factory sticker price.

So - anybody up for buying a new car?

The car that I bought new for $70,000 SGD 6 years ago, would, at today's prices, be about $150,000 (model for model replacement)

[AaronX]

I think the worst part is the COE has NO VALUE after 10 years. It's not like the price of cars starts higher then depreciates at the same percentage rate as in other countries. No, you're paying $7,600 every year to entitle you to own a car. On the other hand, this means you very very rarely see cars >10 years old.

[bengangmo]

Originally Posted by AaronX

No, you're paying $7,600 every year to entitle you to own a car. On the other hand, this means you very very rarely see cars >10 years old.

That's the saddest part - the COE is straight line depreciation, it comes to $25 SGD per day. That is enough for three very square meals.

On the other hand, no cars over 10 years old is a SAD thing - it's very rare to see an interesting car here. Sure, you see supercars, which is fun - but not the classics or anything interesting

[Indian]

Isn't public transport system good in Singapore?

[AaronX]

Originally Posted by bengangmo

On the other hand, no cars over 10 years old is a SAD thing - it's very rare to see an interesting car here. Sure, you see supercars, which is fun - but not the classics or anything interesting

It's great for carbon emissions and air pollution, because you can sell the old, inefficient cars to other countries.

[bengangmo]

Originally Posted by Indian

Isn't public transport system good in Singapore?

Yes it's good - but not that good.

If you are young and single, its still manageable. As a family though, trying to get around and do anything is a real drag.

[bengangmo]

Originally Posted by AaronX

It's great for carbon emissions and air pollution, because you can sell the old, inefficient cars to other countries.

Yes, it was a great move for safety as well. (although the accident rate here is still ridiculously high)

But as someone who likes cars, it is very disappointing to never see anything interesting. Nor can I, due to the prices - ever aspire towards owning something "just for fun and cruising".

[kanicbird]

Originally Posted by AaronX

It's great for carbon emissions and air pollution, because you can sell the old, inefficient cars to other countries.

Did you really think this one through or is this a whoosh? Unless you plan to sell the old inefficient cars to other planets, the pollution and CO2 emissions will still happen here on earth.

[ShibbOleth]

I read an article yesterday on a conservative investor. He mentioned Singapore as a great place to invest because they don't have all the taxes and regulations like the United States. I assume that means no regulations or taxes on businesses and investment, because there seem to be a fair number of taxes and an incredible number of regulation on individuals.

[An Arky]

Yeah; get caned for chewing gum, but laundering money's just fine.

[AaronX]

Originally Posted by kanicbird

Did you really think this one through or is this a whoosh? Unless you plan to sell the old inefficient cars to other planets, the pollution and CO2 emissions will still happen here on earth.

It's a woosh. And isn't carbon trading based on countries' output, not Earth's output anyway?

[bengangmo]

Originally Posted by ShibbOleth

I read an article yesterday on a conservative investor. He mentioned Singapore as a great place to invest because they don't have all the taxes and regulations like the United States. I assume that means no regulations or taxes on businesses and investment, because there seem to be a fair number of taxes and an incredible number of regulation on individuals.

Corporate taxes are incredibly low, so yes - Singapore is a great place to be an investor.

Income taxes are also nominally incredibly low. But the range of additional fees and taxes are damnably fucking high.

The average family can't really aspire to own a car, or a house with any grass.

And yeah - Singapore's the Switzerland of the east - and proud of it.

And wouldn't it be ironic if Singapore was one of the places Romney was hiding his wealth to avoid taxes