Why most Brits don't drive in Singapore: the COE, the MRT and Grab
Before you can even buy a car in Singapore you have to win a 10-year Certificate of Entitlement at auction, and in November 2026 that cost more than S$130,000 for an ordinary car, which is why most Brits take the MRT and a taxi instead.
The short version
- Every car on Singapore's roads needs a Certificate of Entitlement (COE), bid for in auctions twice a month. It lasts 10 years [1].
- In the first November 2026 round, a Category A COE (smaller cars) cleared at S$139,001 (about £80,700) and Category B (bigger cars) at S$132,334 (about £76,900) [2].
- On top come the car itself, registration fees and the Additional Registration Fee, a tax worked out as a percentage of the car's import value [3].
- The MRT and buses cost S$1.28 to S$2.57 a journey (about 74p to £1.49), and a monthly pass S$122 (about £71) [4].
- If you live here for more than 12 months and want to drive at all, even a hire car, you must convert your UK licence [5].
Pound conversions use the Bank of England spot rate of 5 November 2026 (£1 = SGD 1.7214). Figures are rounded.
Why Singapore makes cars so expensive
Singapore is a small island, smaller than Greater London, with around six million people living on it. There isn't room for everyone to drive, so the government caps the number of vehicles through the Vehicle Quota System, which together with Electronic Road Pricing is one of the main pillars of its traffic policy [1]. The COE is how that cap works in practice. It's not a tax in the usual sense; it's a permit to own a vehicle, sold to the highest bidders.
Back home, the cost of a car is the car. Here, the car is often the cheaper part.
How the COE works
The categories
LTA splits COEs into five categories [1]:
| Category | What it covers | Nov 2026 1st round price | In pounds |
|---|---|---|---|
| A | Cars up to 1,600cc and 97kW (130bhp); electric cars up to 110kW | S$139,001 | £80,700 |
| B | Cars above 1,600cc or 97kW; electric cars above 110kW | S$132,334 | £76,900 |
| C | Goods vehicles and buses | S$92,000 | £53,400 |
| D | Motorcycles | S$10,689 | £6,200 |
| E | Open: any vehicle except motorcycles | S$135,998 | £79,000 |
Prices from the bidding exercise that closed on 4 November 2026 [2]. They move every round, so treat them as a snapshot. In that round Category A, the "small car" category, actually cleared higher than Category B, which shows how competitive the bidding gets [2]. LTA is also consulting on changes to the car categories to better separate mass-market and higher-value cars; nothing has changed yet [1].
The bidding
- Exercises run twice a month, usually starting at noon on the first and third Monday and closing at 4pm on the Wednesday [1].
- LTA announces the quota for each category before each round [1].
- You bid as an individual at a DBS or POSB ATM, or a car dealer bids for you, which is how most people do it. You need to be at least 18, and as a foreigner you bid with the name on your FIN card [1].
- Your bank takes a deposit and an admin fee. You can raise your bid during the exercise but not withdraw it [1].
- If you win, you get a Temporary COE. For Category A and B it's valid for six months, and you must register a car before it runs out or lose your deposit [1].
Ten years, then what?
A COE gives you the right to own and use the car for 10 years [1]. At the end you either deregister the car, or renew the COE by paying the Prevailing Quota Premium, a moving average of COE prices over the last three months [1]. If you deregister early, you may get a rebate for the unused part of the COE, and possibly a rebate on the registration fee too, depending on the car's age [1].
That rebate matters to expats. If you leave Singapore after three years, the car and its COE still have value; you're not just throwing the money away. But you're tying up a huge sum, and you carry the risk of prices moving while you own it.
The rest of the bill
The COE is the headline, but not the whole story.
- The car. Its Open Market Value is assessed by Singapore Customs, taking in the purchase price, freight and insurance [3].
- The Additional Registration Fee (ARF). A tax paid on registration, worked out as a percentage of the Open Market Value, on top of all other fees and taxes [3]. The percentage climbs as the car's value rises, so premium cars pay a lot more.
- Registration fee, road tax and insurance. Everyday running costs, like at home, but with GST at 9%.
- Electronic Road Pricing. Gantries charge you for using busy roads at busy times.
- Parking. Season parking at your condo or HDB block, and car park charges everywhere else.
- Petrol. Not cheap either.
Add it up and a modest family car in Singapore can cost several times what the same model costs at a UK dealer. Even just the COE, spread over its 10 years, works out at about S$13,900 a year (about £8,070) at November 2026's Category A price. An adult monthly travel pass for a year costs S$1,464 (about £850) [4].
| Option | What it costs | In pounds |
|---|---|---|
| COE alone, Category A, per year of its 10-year life | About S$13,900 | About £8,070 |
| Adult monthly travel pass, 12 months | S$1,464 | About £850 |
| Single MRT or bus journey by card | S$1.28–S$2.57 | 74p–£1.49 |
Sources: [2][4]. The COE line divides the November 2026 Category A price by 10 years and ignores the rebate if you deregister early.
How Brits actually get about
The MRT
The MRT is the backbone: clean, frequent, cool and cheap. Lines reach most expat areas, from the Thomson–East Coast Line through Orchard and Marine Parade to the Downtown Line through Bukit Timah and the CBD. You tap in and out with a card or contactless bank card, and the fare depends on distance [4].
Adult card fares in force since 27 December 2025 run from S$1.28 for up to 3.2 km to S$2.57 for journeys over 40.2 km (about 74p to £1.49) [4]. The Public Transport Council has announced a rise of up to 13 cents per adult card journey from 26 December 2026 [6]. Even then, it's a fraction of what you'd pay on the Tube.
Buses
Buses cover the gaps the MRT misses, run on the same card and are fully air-conditioned. The adult monthly travel pass covers unlimited basic bus and train journeys for S$122 (about £71), though not express or premium services [4].
Grab and taxis
Grab is the ride-hailing app most people use, and taxis are metered and easy to flag outside rush hour and tropical downpours. Plenty of British families rely on a mix of MRT for the commute and Grab for the school run in the rain, the weekly shop and nights out. It's still far cheaper than owning a car.
Hiring a car for the odd weekend
If you want a car now and then, for a trip to Malaysia or a big flat-pack furniture run, you can hire one or use car-sharing. Hire firms set their own rules on age, experience and IDPs [7].
Converting your licence anyway
Even if you never buy a car, it's worth sorting your licence. The Traffic Police say foreigners living in Singapore for more than 12 months must hold a Singapore driving licence to drive here [5]. Before then, carry your UK licence with a 1949 International Driving Permit, which you have to get in the UK before you leave [5][7].
Converting means passing the Basic Theory Test, then booking an appointment with the Traffic Police and bringing your UK licence, your pass, your passport and proof that you lived in the UK for at least a year when you got your licence [5]. There's no practical test for most Brits on an Employment Pass or Dependant's Pass. Our guide to driving in Singapore with a UK licence has the step-by-step.
Keep your UK licence valid too, so you can drive on trips home. See driving abroad on a UK licence.
Should you buy a car?
It can make sense if you have several young children, live somewhere poorly served by the MRT, or your employer contributes. For most Brits, though, the maths says no.
- Price the whole package, not just the COE: car, ARF, insurance, parking and road pricing.
- Think about how long you're staying. The COE rebate softens an early exit, but only partly.
- Try a month car-free with a travel pass and Grab before deciding.
- Live near an MRT station. It changes everything.
For honest views on whether a car is worth it in Bukit Timah or Sentosa Cove, ask in our community group for Brits in Singapore.
Sources
- LTA OneMotoring: Certificate of Entitlement (COE) (checked 7 November 2026)
- LTA OneMotoring: COE open bidding, November 2026 1st exercise results (ended 4 November 2026)
- LTA OneMotoring: Additional Registration Fee (ARF) (checked 7 November 2026)
- Public Transport Council: Public transport fares and passes (fares from 27 December 2025; read 11 November 2026)
- Singapore Police Force: Singapore Driving Licence (updated 15 June 2026)
- Malay Mail: Singapore transport fares to rise from 26 December (30 September 2026)
- GOV.UK (FCDO): Singapore travel advice, safety and security (still current at 7 November 2026, updated 19 March 2026)