Car Prices

Do you know where your money goes to when you buy a car? I went about dabbling with some numbers and started to figure out where all that money goes to when someone purchases a car in Singapore and I tried to reconcile the huge disparity between the money you pay and the OMV (Open market value) of the car you buy.

For instance, a BMW Z4 230i would cost you around $230,000 in Singapore if you were to purchase it now but its OMV (value of the car) is $55,000. Notice the 400% increase from OMV to OTR (on the road) price?


Now, let me set some assumptions. We are now working with a (not-so-common-car) the BMW Z4, 2.5L engine.

the OMV is 55,000, to grant some allowances, lets put it as 60,000.

the ARF (fees you pay to register the vehicle) is believe it or not, 110% of OMV: 66,000 (yes and you thought COE was expensive...)

Then of course, we need a Cat E COE which is around 50,000

We also have our import duty, 20% of OMV: 12,000

And GST which will include all the costs of imports: 5040

Shipping and other misc costs: 2,500

Road Tax (which after i have went to derive, works out to be: [746+1.16(EngineCap-1600)]=1790

Insurance: 3,000

Total: S$200,330

This is not much difference from the price PI offers you...
__________________

If we were to look at a more common vehicle with a lower engine cap (1600)

Say, the Honda Civic 1.6

OMV: 24,000
ARF: 26,400
Duty: 4,800
GST: 2016
Shipping: 2,500
Road Tax (Diff formula this time round): 742
COE Cat A: 40,000
Insurance: 2,000
Total: 102,300

Again, not much difference from the PI cost.