Recently I sent my Mercedes E250 (June 2014 model) for an 'overhaul' and had the following items changed :
a) shock absorbers (front) $ 360 (USD 262)
b) Absorber mountting (2 pc) $ 290 (USD 211)
c) Caster arm (2 pc) $ 370 (USD 270)
(gives a knocking sound
when driving)
d) Linkage (2 pc) $ 140 (USD 102)
e) Oil Change $ 140 (USD 102)
f) Labour $ 300 (USD 218)
Total $ 1,600 (USD 1,167)
I would like to find out if the cost of repair in Singapore is more expensive than other parts of the world like Western Europe (car make for car make) and the US ??
Singapore is the world's most expensive place to own a car. Period. The cost of the Certificate of Entitlement (COE) recently hit S$ 100,000 or USD 65,000.
This is price the owner of a new car even gets to 'entitle' himself by a piece of paper certifying him / her that he can purchase a new car from any car dealership.
The Government calculates the number of COEs by the noting the number of cars which reach 10 years of age and get deregistered off the road for the upcoming month, they will add for a 3 - 5% increase for the upcoming month's tender for NEW COEs. The bidders will know the number of COEs coming out and all the bidders need to bid n secret before the closing of the tender exercise.
The purpose of the COE (we have had this for almost 30 years) is to moderate and manage the number of cars on the road, hence the lack of traffic jams islandwide.It is also another form of road tax by the Government to keep the roads smooth flowing, traffic pollution and traffic jams to a minimum.
There are plenty of taxes and 'pseudotaxes' in Singapore. Let me elaborate :
1. Open Market Value (OMV)
This is the price one will get for a new car from the country of origin (say Germany for the Mercedes). Lets take the E 200 basic Avant Garde as a comparison. The list price there before additional costs is EUR 46,500. So convert it to Singapore dollars (x 1.52) you get S$ 70,000.
OMV $70,000 (1)
2. Additional Registration Fee (ARF)
This is a complex of additional taxes which start from a base of $20,000 and I list the ARF for each corresponding band.
First $20,000 ; 100% of OMV $ 20,000
Next $ 30,000 : 140% of 30,000 (up to) $ 42,000
Next $ 30,000 : 180% of 30,000 (up to) $ 42,000
hence for $70,000 OMV, the person pays
a) $20,000
b) $42,000
c) $36, 000 (180% of 20,000)
ARF $ 98,000 (2)
3. Excise Duties and GST
Calculated at 20% of OMV and 7% is added on the (Excise duty and OMV)
a) $14,000
b) $ 5,880 (7% of sum of 70,000 and $14,000)
Excise and GST $ 19,880 (3)
4. COE (Certificate of Entitlement).
As of the most recent tender.
$ 92,000 (4)
5. Rebate / Surcharge for efficient Carbon Emissions car
(for example Electric cars will benefit and CO2 emitters will be penalised)
In the spec sheet, the E 200 (basic) emits 142 - 132 gm / km of CO2 which effectively neither adding a surcharge nor getting a rebate for Carbon friendly use.
$ 0 (5)
5. Dealer's margin (11% on average)
Adding 1 through to 5 ; the net total is $ 279,880
(1) $ 70, 000
(2) $ 98, 000
(3) $ 19, 880
(4) $ 92, 000
(5) $ 0
------------
$ 279,880 Nett Total
------------
(6) 11% $ 30, 787 (11% of $279, 880)
Grand Total (on the Road New Merc E200) (drum roll) ... $ 310, 667 or
USD 226,764
EU 204, 386
I hear a big collective gasp from those who read this or are not aware of this major fact. This big ticket item in a person's life is easily 4.42 times the price of a new car in ALL developed countries.
A ridiculous sum to pay unless one is rich, needs it for business purposes, starting a family (although this is highly debatable with the surfeit of taxis, Grab and Gojek cars available).
Road Tax
Road tax is only a miniscule S$ 2,068 (USD 1,400) based on engine cc (2050 cc)
Insurance
comprehensive insurance is roughly S$ 1,000 including windshield cover.
Parking
Car Parks in the Central Business District (CBD) are on average S$ 3.00 per hour
(USD 2.25 per hour).
Roads
They are considered A1 category, so there is minimal chance of driving over potholes, cracks and result in less wear and tear per 10,000 km.
I have had 2 Mercedes E 250 in the last 10 years. The current car is the best ride I have ever had in terms of horse power (207 bhp) and ride comfort (very little noise from outside).
Questions to my Readers
> What is the cost of repair of consumable spare parts in your country ?
Malaysia, US , UK or Germany for example
> What is the cost of ownership of a luxury branded car in your country ?
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