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Should Expats Buy a Car or Use Public Transport in Singapore?

Writer: Singapore Expats Association
Singapore Expats Association
Oct 4
5 min read
Buy a Car or Use Public Transport in Singapore

For most expats, public transport is the more practical and economical choice in Singapore. Buying a car makes more sense when convenience has unusually high value, such as for families with several young children, frequent cross-island journeys or work that requires regular travel to locations poorly served by MRT and buses.

Singapore makes this decision unusual because owning a car is not simply about buying the vehicle. The cost of gaining the right to own one can be enormous.

Public transport is difficult to beat on price

Singapore’s MRT and bus network covers most residential and business districts, and fares remain modest compared with the cost of driving.

Adult card fares for basic bus and train journeys currently start at S$1.28, while the Adult Monthly Travel Pass costs S$122 for unlimited basic bus and train rides.

For an expat commuting between home and an office near an MRT station, transport can therefore remain one of the smaller items in a monthly budget.

Even adding occasional taxis or ride-hailing trips may still cost far less than owning a car.

The COE changes the entire car-buying calculation

Anyone buying a car in Singapore quickly encounters the Certificate of Entitlement, or COE.

A COE gives the holder the right to own and use a vehicle for a ten-year period. Its price is determined through regular bidding exercises and can move sharply.

In the first September 2026 bidding exercise, the quota premium reached S$133,009 for Category A cars and S$135,001 for Category B cars.

That is before considering the underlying value of the car itself and the other taxes involved.

For expats on a relatively short assignment, absorbing that level of upfront cost can be difficult to justify.

Buying the car involves more than the sticker price

New cars in Singapore attract several charges.

LTA lists the main upfront costs as the vehicle’s Open Market Value, registration fee, Additional Registration Fee (ARF), COE quota premium and excise duty. Cars are subject to a S$350 registration fee, while excise duty is currently 20% of Open Market Value.

ARF rates are progressive. For cars registered under the current structure, the rate starts at 100% of the first S$20,000 of OMV and rises through higher bands, reaching 320% on the portion above S$80,000.

This is why comparing a Singapore car price with the price of the same model overseas can be misleading.

Ownership costs continue after you buy

Ownership costs continue after you buy

The upfront price is only the beginning.

Car owners also need to budget for road tax, insurance, fuel or charging, maintenance, servicing, tyres and parking.

Parking can appear relatively minor until you pay for it at home, work and destinations throughout the month. URA and HDB car parks commonly use charging rates such as S$0.60 or S$1.20 per half-hour, depending on the location.

Private condominium parking may already be included for residents, but office parking can add another significant monthly expense.

A realistic comparison should therefore use the full annual cost rather than only the loan repayment.

ERP makes some peak-hour journeys more expensive

Drivers also encounter Electronic Road Pricing.

ERP charges vary by road, location and time according to traffic conditions. Rates are reviewed periodically.

From 29 June 2026, for example, LTA increased several morning ERP rates on the AYE and PIE by S$1 following congestion reviews.

One ERP charge is not a major expense. Repeated daily charges, parking and fuel together are what make commuting by car noticeably more expensive.

A car can still make family life easier

Cost is not the only consideration.

Parents with babies, prams, sports equipment or several school drop-offs may find a car much easier than moving everyone between buses and trains.

The same applies if children attend different schools in locations without convenient direct transport.

A car can also be useful for families living farther from MRT stations or spending weekends moving between lessons, sports clubs, parks and social activities.

In these cases, the question becomes whether the convenience is worth the premium.

For some households, it genuinely is.

Public transport can be faster than driving

Public transport can be faster than driving

Owning a car does not guarantee the shortest commute.

An expat living near an MRT station and working in the CBD may find that the train is quicker once traffic, parking and walking from the car park are included.

Public transport also removes the need to concentrate on driving, which means commuting time can be used for reading, messaging or simply switching off.

Before buying a car for work, test the exact journey by MRT and car during peak hours.

Singapore is compact, but congestion still matters.

Ride-hailing can fill the gap

The choice does not have to be car ownership or public transport every single day.

Many expats use a mixed approach: MRT and buses for normal commuting, then taxis or ride-hailing when convenience matters.

That might mean taking a car home after a late dinner, travelling with luggage, getting a child to an appointment or avoiding a complicated multi-transfer journey.

Even spending several hundred dollars a month on occasional rides may be cheaper than maintaining a privately owned car.

Car-sharing can provide another option for people who only need to drive occasionally.

Is leasing a car better for short-term expats?

Leasing can remove some of the complexity of buying and later selling a vehicle.

Monthly leases may package items such as road tax, insurance and maintenance, depending on the contract.

However, leasing is still expensive compared with public transport and ride-hailing.

It can work for an expat whose employer provides a transport allowance or whose role requires regular driving, but compare the total contract cost carefully before deciding.

When does buying a car make sense for an expat?

Car ownership becomes easier to justify when you drive frequently, transport several family members, live or work away from convenient public transport, or value flexibility enough to accept the extra cost.

For most other expats, Singapore’s transport network makes owning a car optional rather than necessary.

Try living without one first. Track what you spend on MRT, buses, taxis and ride-hailing for several months. If the inconvenience remains significant, you will have real numbers to compare with the cost of ownership.

For expats building a life in Singapore, transport is only one part of settling in. The Singapore Expats Association provides a community where expatriates can connect and find opportunities to build relationships in Singapore.

If you would like to join the community, visit the Singapore Expat Association membership page. For partnerships, collaboration, or assistance, contact members@expatassociation.com.

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