There’s expensive, and then there’s “you paid six figures just to own a Corolla.” That’s life in a country where buying a car means outbidding half the population for a 10-year license to register it. That country is Singapore—an island nation where the traffic flows smooth, the streets are clean, and every vehicle comes with a luxury price tag, whether it’s a Lambo or a lemon.

How to spend $100k and still not own a car

In Singapore, owning a car starts with winning a Certificate of Entitlement (COE)—a 10-year license to register your vehicle. In May 2025, the COE for small cars (Category A) hit a jaw-dropping S$103,009 (US$79,802), up 3.5% from April’s S$99,500. That’s just the fee to own a car, not the car itself.

The COE system, introduced in 1990, was designed to control vehicle population in the land-scarce city-state. With limited road space, the government uses a finite COE supply to limit the number of vehicles, aiming to reduce congestion and pollution. But with COE prices soaring, Singaporeans pay more for the right to own a car than most vehicles’ price tags.

The bidding process is fierce. COE quotas are released twice a month, and demand often outstrips supply. In May, the government received 2,240 bids for 1,267 Category A COEs. Dealers and buyers alike scramble to secure these certificates. And the price just keeps going up.

Don’t even think about cheap gas

Think you can save money by fueling up in neighboring Malaysia? Not so fast. Singapore enforces a “three-quarter tank rule,” requiring Singapore-registered vehicles to have at least three-quarters of their fuel tank filled before leaving the country. This rule, under the Customs Act 1960, aims to prevent drivers from taking advantage of lower fuel prices across the border.

Violating this rule can result in a fine of up to S$500 or prosecution in court. Drivers caught with less than the required fuel level are often turned back at the border checkpoint. In one inspection run, 55 vehicles were turned away at the Singapore-Malaysia land checkpoints for not complying with the rule.

Singapore’s system might sound “bonkers” to outsiders, but it’s engineered for efficiency. Fewer cars, more order, and cleaner air. Still, when your driver’s license comes with a side of debt and a fuel gauge inspection, it’s hard not to wonder if the price of order is a little too steep.

Sources: Driving Instructor Singapore, Mothership Singapore, Singapore Carmart, and Singapore Lexus