Owning a car in Singapore is not a monthly instalment decision. It is a multi-year capital allocation commitment.
The correct way to think about ownership is a 5-year total exposure model — not just fuel and loan payments.
Decision Snapshot (do this in order)
If you want to understand the most common mistake buyers make before diving into numbers: the financial mistake most people don’t see.
Full transport cost model (quick map)
Use this page for the full 5-year exposure model, then drill down into the specific cost drivers above.
Ignoring any one of these leads to a distorted ownership decision.
“Cost of owning a car” is not one number. It clusters into bands depending on depreciation exposure and recurring costs. These three profiles match the planning logic used across the site (and the calculator):
| Profile | 5-Year Ownership Cost (SGD) | What typically causes this |
|---|---|---|
| Disciplined ownership (lower exposure) | ~$124,000 – $155,000 | Lower depreciation, controlled car choice, fewer add-ons, costs managed tightly |
| Typical ownership (mass-market reality) | ~$155,000 – $180,000 | Normal depreciation/COE exposure, average insurance + running costs |
| Higher exposure (higher COE / higher-cost ownership) | ~$180,000 – $220,000+ | Higher depreciation profile, higher financing/insurance, higher usage or cost volatility |
These are planning ranges (not quotes). Your results move with COE cycle, holding period, financing, insurance profile, mileage and car selection.
Want your exact band (disciplined / typical / higher exposure) using your own inputs?
Run the Car Affordability Calculator (Advanced) to price buffers, volatility risk, and holding-period fragility.
Depreciation is usually the largest cost. In Singapore, COE is embedded inside that depreciation.
If you only read one deep-dive, read this: Car depreciation explained (why it dominates your monthly cost in Singapore).
If you want the structural explanation of how COE drives cost: COE Cost in Singapore (2026).
A mass-market car may cost $120,000–$180,000 inclusive of COE. Over 5 years, depreciation commonly ranges:
$70,000 – $110,000
Financing adds interest drag. Over 5 years, total interest may range:
$10,000 – $30,000
Remember: flat rate ≠ real borrowing cost. See: Car Loan Rates (Flat vs Effective Interest).
Comprehensive insurance typically costs:
$7,500 – $12,500 over 5 years
See realistic ranges: Car Insurance Cost in Singapore.
Fuel depends on mileage, but commonly totals:
$12,000 – $18,000 over 5 years
Want a proper model? See Fuel Cost in Singapore (cost per km + monthly scenarios). Also see EV vs petrol running cost + break-even thinking.
Routine servicing + wear-and-tear:
$8,000 – $15,000 over 5 years
Older cars increase volatility. See: Used vs New Car Comparison.
Season parking + workplace parking + incidental ad-hoc parking vary by lifestyle. If you want a clean monthly budget model, use: Parking Cost in Singapore. If ERP is meaningful for your route, model it properly here: ERP Cost in Singapore (daily & monthly budget).
$9,000 – $20,000 over 5 years
If $30,000–$50,000 is committed upfront and assumed at 5% annual return, opportunity cost over 5 years:
$7,500 – $15,000+
| Category | Estimated 5-Year Cost (SGD) |
|---|---|
| Depreciation | $70,000 – $110,000 |
| Loan Interest | $10,000 – $30,000 |
| Insurance | $7,500 – $12,500 |
| Fuel | $12,000 – $18,000 |
| Maintenance | $8,000 – $15,000 |
| Parking & ERP | $9,000 – $20,000 |
| Opportunity Cost | $7,500 – $15,000+ |
| Total Estimated 5-Year Cost | $124,000 – $220,000+ |
If unsure, compare with: Car vs Ride-Hailing Analysis or use the Break-Even Calculator.
Step 1 — Run your personalised break-even:
Step 2 — If you’re near break-even (grey zone), decide using structure:
Step 3 — If affordability is the real bottleneck:
A realistic 5-year ownership exposure commonly ranges from roughly $130,000 to $180,000+ for mass-market profiles, and can extend beyond $220,000+ for higher exposure ownership. Outcomes depend on COE cycle, depreciation profile, financing structure and usage patterns.
Depreciation is usually the largest cost, and COE is embedded inside that depreciation exposure. If COE is elevated at entry and your holding period is short, your outcome becomes more timing-sensitive. See: COE Cost in Singapore.
It depends on your usage and ownership exposure profile. Break-even ride-hailing spend often clusters around $2,200 to $3,000+ per month depending on depreciation/COE, financing and insurance profile. Use: the break-even calculator.
Many focus only on monthly instalments and ignore depreciation, COE decay, insurance volatility, maintenance risk and opportunity cost of capital.
In Singapore, a car behaves like a leveraged lifestyle asset: it magnifies convenience — and magnifies financial fragility if mispriced.
The correct decision is not “Can I afford the instalment?” It is: Does ownership outperform alternatives after pricing full 5-year exposure?
If you have not yet pressure-tested your assumptions, read: The Financial Mistake Most Buyers Don’t See.