In Singapore, the entry-level BMW X1 is priced at nearly 175,000 euros. It’s important to note that every brand faces these “insane” pricing challenges in this country: a new Toyota Corolla is priced at 118,000 euros, while a Volkswagen Golf starts at 129,000 euros.
We initially highlighted BMW because the Bavarian automaker has made efforts to provide a more affordable option; the X1 is configured less extravagantly compared to its European counterpart. The base model available in Europe is the X1 sDrive16i, equipped with a three-cylinder, 1.5-liter engine delivering 122 hp.
BMW in Singapore presents nearly all models available in Europe, but the prices are astonishingly high. For instance, the 520 is listed at 243,000 euros, and those interested in the 7 Series will have to shell out over 400,000 euros for the 735!
But why are new cars so insanely expensive in Singapore? The reason is the government, namely the huge taxes on cars. This city-state has an area of 719 square kilometres, but Singapore is home to almost 5.7 million people. With a population density of 7,867 people per square kilometre, Singapore is in second place in the world.
Such a concentration of population would mean programmed chaos on the roads, so Singapore is trying to drastically limit the number of cars on the roads by charging high prices. Because new cars are so expensive, used car prices are astronomical. For example, for a small car ten years old, you still need to pay around 20,000 euros.
But prices are not the only way to limit the number of cars. As part of a restrictive traffic policy, ownership of a passenger car in Singapore is subject to strict regulations. Any potential car buyer must first compete for a certificate of entitlement to purchase.
The National Road Traffic Administration regularly decides on the allocation of licenses, which can be purchased through a competition but expire after ten years. Singaporeans currently have to pay around 66,000 euros for such a license alone! Furthermore, traffic in the city centre is subject to high fees through an electronic toll system.
