New car prices are undeniably increasing at a less-than-ideal rate, but some regions feel the pinch far more than others.
Take Singapore, for example, where discrepancies in car pricing compared to other markets are mind-boggling. The latest reminder comes with the eye-watering price tag of the 2025 BMW M2.
At the current exchange rate, the M2 costs a staggering R6,7 million. In Singaporean dollars, that translates to a retail price of a whopping $506,888.
But why is the price so astronomical?
This price disparity isn’t unique to the M2 or even BMWs. Singapore’s new car market is burdened by a complex system of taxes. These include an Additional Registration Fee (ARF) based on a percentage of the car’s Open Market Value (OMV) and a Vehicle Emissions Scheme (VES) surcharge depending on the car’s emissions.
On top of that, an Excise Duty adds a further 20% based on the OMV, followed by an 8% Goods and Services Tax (GST).
But wait, there’s more! To own and register a car in Singapore, you need to win a Certificate of Entitlement (COE) through a bidding process, which itself can cost six figures and expires after 10 years. This COE comes on top of the car’s base price and all the aforementioned taxes.
While some countries are gradually increasing taxes on high-displacement engines, Singapore remains the undisputed champion of expensive car ownership.
Source and info: BMWBlog