In Singapore, a roaring V12 engine isn’t the ultimate symbol of wealth; rather, the true luxury is simply the ability to own a car – any car, old or new. Even the most ardent sports car enthusiasts would be surprised to learn that possessing a vehicle carries such an exclusive status.
At the heart of Singapore’s unique system lie Certificates of Entitlement (COEs). Introduced in 1990 to curb pollution and congestion in the densely populated city-state, these certificates are mandatory for registering any vehicle. And they aren’t perpetual; they’re valid for just ten years, after which the process of acquiring another begins anew. Obtaining a COE is notoriously difficult, decided by a monthly auction. As demand far outstrips supply, these certificates can exceed SGD 70,000 (approximately EUR 49,000 as of February 11, 2026).
Without a COE, registering a car is impossible. This drives up the cost of even basic vehicles. A modest hatchback, when combined with the COE, can easily surpass SGD 100,000 (approximately EUR 70,000).
The result is a system where car ownership is largely limited to the affluent. Insurance broker Andre Lee’s experience, as reported by the New York Times, illustrates this point. In 2020, he purchased a 2010 Kia Forte for SGD 24,000 (approximately EUR 16,600). “It’s like carrying a Rolex,” he explained, noting that a used car in Singapore costs five times more than the same model in the United States. Lee’s motivation wasn’t a passion for automobiles, but rather a desire to impress clients.
However, the financial burden proved unsustainable. Three years later, Lee sold the car, finding that maintenance, fuel, and parking costs outweighed the benefits, even with his substantial income. Entrepreneur Su-Sanne Ching followed a similar path, spending SGD 150,000 (approximately EUR 104,000) on a Mercedes-Benz, with SGD 60,000 (approximately EUR 41,600) allocated solely to the COE. “I pay for the convenience,” she stated, reflecting the perception of car ownership as a status symbol akin to luxury jewelry.
Singapore’s policy of restricted car ownership is, arguably, a necessary measure given its limited land area. With a population of 5.9 million people crammed onto an island smaller than New York City, an unrestricted influx of vehicles would be untenable. Currently, We find only 11 cars per 100 residents. This contrasts sharply with the European Union average of 56 to 57 vehicles per 100 people, and the even higher rate of over 80 vehicles per 100 people in the United States.
Fewer cars translate to less congested streets, faster commutes – a critical advantage for emergency services – increased space for pedestrians, and reduced noise and carbon emissions. The authorities have heavily invested in public transportation to support this policy. In the last decade, Singapore has added numerous new subway lines, 1,000 buses, and 200 additional trains. Approximately 80% of families now live within a 10-minute walk of a train station, making car ownership less essential.
A subway ride, even a long one, costs less than SGD 2 (approximately EUR 1.40). Ride-hailing services like Grab are readily available and reliable. While other cities are exploring ways to reduce traffic, few are willing to replicate Singapore’s system due to the substantial investment required, the radical changes it would impose on citizens, and concerns that car ownership would grow exclusively the domain of the wealthy.
Singapore remains unique in its stringent control of car ownership. But, as the city-state demonstrates, possessing any car – even an older model – represents a significant luxury. For visitors, admiring these vehicles from the sidewalk of a subway station may offer the most exclusive view.
