Driving in Singapore is “as having a rolex”

(Singapore) Andre Lee bought a second -hand Kia to give momentum to her career as an insurance agent in Singapore. He imagined crossing the city at full speed in his black coupe to impress his potential customers.

“It’s like wearing an evening outfit with leather shoes or wearing a rolex,” says Lee, 33, about the car he bought in 2020.

Mr. Lee paid $ 24,000 ($ 33,700 CAN) for his 2010 KIA, five times the price requested in the United States at the time. For what ?

A purchase permit

Singapore, an island city-state smaller than New York, demands thousands of dollars just for the right to buy a vehicle. The price of the purchase permit, introduced in 1990 to limit pollution and congestion, increases with the value of the vehicle.

The price paid by M. Lee for his car, included, was rather low. Some pay up to $ 84,000 ($ 118,000 CAN) for this 10 -year document, called “eligibility certificate”.

This is not the case in the Lee family, his parents lent him money for the Kia.

For many Singaporeans, there are few reasons to have a car. Most of them rely on public transport, reliable and affordable, which cover the whole island. Even long journeys cost less than 2.50 Singaporean dollars ($ 2.65 CAN), and there are several carpooling platforms.

However, twice a month, individuals and concessionaires participate in the auctions for the few purchasing permits allocated by the Singaporean authorities.

The decision, made decades ago, to limit the number of cars has borne fruit: there are approximately 11 private vehicles per slice of 100 inhabitants on the island (more than 80 in the United States and 75 in Italy).

Singapore is not the first place to tax cars to reduce pollution and traffic. In 1989, Mexico City started to limit the number of cars in circulation. London and Stockholm then introduced urban tolls. New York followed this year.

But now does it require so much to have motorists to have a car.

In March, the most expensive permit in Singapore increased by 18 % to exceed $ 84,000. But this cost does not seem to slow down sales. The state collected 4.86 billion US dollars with its permits last year, almost 40 % more than expected.

Small currency for the rich

Singapore has an increasing number of billionaires, for whom $ 84,000 is small currency.

Su-Sanne Ching, CEO of an import-export company, bought a Mercedes-Benz sedan to move with her parents.

It spent around US $ 150,000, including $ 60,000 just for the license. A model similar to the United States would have cost him $ 48,450.

“This is the price of convenience,” she says.

But for the middle class, especially people who have children, the exorbitant cost of the permit requires making difficult choices.

Joy Fang and her husband bought a used Hyundai in 2022 for $ 58,000, allowed, to lead their two children to school. The price of the car – almost twice the price of a new without the license – gives it a little dizzy.

Each month, the couple spends about $ 1,400, or more than 10 % of their budget, for the car, the license and other car expenses. To compensate, they reduced their outings to the restaurant and their trips.

But the idea of ​​juggling a stroller, two children and bags in public transport makes her blame.

“Honestly, we have no choice,” she says.

Other motorists decide that the game is not worth the candle. Andre Lee, the insurance agent, sold his kia three years after buying it. Maintenance, parking, petrol, costs were added, and he was not convinced that the car increased its turnover.

Today, Mr. Lee takes public transport. If he has to meet a client, he borrows the Nissan Qashqai from his father.

“I had other priorities and I did not see the car at the top of the list,” he said.

This article was published in the New York Times.Read the original version (in English; subscription required)