From 30 new Tesla registrations in the first half of 2021 to almost 500 new registrations in the second half of 2021, we’re looking at an amazing 15x more Tesla vehicles on our roads in 2021.
That’s quite a feat given how far our island city has come since the $15,000 carbon emissions surcharge saga back in 2015. For those unfamiliar with the EV scene here at home, our country has only very recently changed its stance on Electric Vehicles.
With the latest Budget 2021, the inter-ministerial Singapore Green Plan 2030 announced that the Government “would revise Singapore’s multi-layered vehicle tax structure to make it easier to buy and own electric vehicles (EVs)“. Previously, the stance was a little less inviting. The sentiment prior to the release of the Budget 2021 is expressed below.
With things looking a little greener now (no pun intended), indeed there are more eyes on Tesla given the increase in month-on-month Tesla registrations as shown below.
I) How much does it cost to buy a Tesla in Singapore?
To keep things simple, I will only be looking at the BIG TICKET costs involved to own a Tesla in this section.
If we go beyond that, there’ll be many other variables to consider such as the actual cost savings of charging vs the savings in fuel.
As such, the formula which I will be using is as simple as
Open Market Value (A)
+
Excise Duties (B)
+
Additional Registration Fee (C)
+
COE (D)= Cost of Tesla (At Purchase)
Let’s get into it!
A) Open Market Value: ~SGD$73,000
Don’t let the jargons fool you, Open Market Value or OMV in short is how much your car will cost. Although Tesla does come with cool upgrades (which cost more $$) such as paintjobs, interior colour, etc, let’s keep this part simple.
I’m using ONE Motoring’s definition as well as the average OMV (rounded up) as stated on their website. We will be using the Tesla Model 3 as a case study.
The OMV of a vehicle is the price paid or payable when a vehicle is imported into Singapore. This is assessed by the Singapore Customs and includes purchase price, freight, insurance and all other charges incidental to the sale and delivery of the car to Singapore.
ONE Motoring (LTA)
With the OMV, up to 60% can be paid through a loan therefore the estimated upfront cost for Tesla Model 3 at purchase will be 40% of $73,000 = $29,200. Balance of $43,800 to be paid via monthly installments (loan) indicated in Part 2.
60% Loan = $43,800
40% Cash = $29,200
B) Excise Duty: ~SGD$14,600
All goods imported into Singapore are subjected to custom duty or excise duty. For cars, the excise duty is usually 20% of the OMV. More details about excise duties can be found on the Singapore Customs website.
In this case study, we’ll just use 20% of $73,000 as a reference.
C) Additional Registration Fee: ~SGD$86,000
More fees? Yes of course!
After paying import duty on your shiny new Tesla, you’ll need to pay a tax aka Additional Registration Fee (ARF). According to LTA, the ARF rate is a percentage of your vehicle’s OMV.
As the OMV of Tesla is above $50,000 , the ARF rate will be 180% of the OMV. In this case, this works out to be 1.8 x $73,000 = $131,000
However, in order to encourage adoption, there are significant rebates under the Vehicle Emission Scheme and EV Early Adopter Incentive (EEAI) that will help to offset your ARF.
For a Tesla Model 3, the total rebates are $45,000. Therefore, final amount for this ARF component will be $131,000 – $45,000 = $86,000
D) Certificate of Entitlement: ~SGD$101,200
What’s interesting about the COE in the case of Tesla is that,
Unlike other brands, Tesla does not package its cars with COE. Instead it prices its cars without COE, and then gets customers’ approval to bid for a certain price – with an allowance for another 15 per cent.
Business Times – Big car COE tops S$80,000; aggressive bidding by Tesla cited
As per the Tesla FAQ,
All Tesla cars exceed 97 kW power output and will require a Category B or Category E COE when registering for use in Singapore.
Tesla FAQ
Therefore with the latest information from Straits Times (updated 3rd of November 2021) we have the results of the latest COE as follows,
Taking into consideration the allowance of 15% and assuming that we are using the Category E COE as a point of reference, I’ve calculated this segment to be 1.15 x $88,000 = $101,200
With COE, up to 60% can be paid through a loan therefore the estimated upfront cost for COE at purchase will be 40% of $101,200 = $40,480. I’ve allocated the balance of $60,720 to be paid via monthly installments (loan) indicated in Part 2.
In summary, a Tesla Model 3 costs…
Open Market Value (A) $29,200
+
Excise Duties (B) $14,600
+
Additional Registration Fee (C) $86,000
+
COE Upfront (D) $40,480= Cost of Tesla (At Purchase) $170,280
That’s about the cost of a 3-4 room BTO in a mature estate!
II) Estimated Monthly Costs
Your monthly Tesla maintenance cost would depend highly on your preference and lifestyle as a driver. For example, I might send my car for washing once a month whereas another driver may prefer to wash it weekly.
That said, here’s an estimated monthly maintenance of owning a Tesla:
| Expenditure | Cost |
|---|---|
| Car Monthly Instalment (Explained Below) | $638 |
| COE Monthly Instalment (Explained Below) | $864 |
| Road Tax (based on 211kW output) | $207 |
| Insurance | $166 |
| Charging Costs (SP Group, $0.414 per kWh) | $100 |
| Parking | $500 |
| ERP | $50 |
| Fines | $100 |
| Servicing & Repair (est. $800 a year, electric cars cost less to service than regular cars) | $66 |
| Car Wash (lets set it as twice month, $15 each time) | $30 |
| Car Accessories (Air Freshener, Phone Mount, Snacks?) | $10 |
| Estimated Monthly Costs | $2,731 / Month |
Of all the components above, the one I would like to touch on would be the monthly installment.
Interestingly enough, our local banks are offering preferential loans for Tesla Buyers. Earlier this year, the Straits Times reported that the effective interest rate will be 3.2% (compared to 3.77% for non-electric cars).
Take note that for cars with an OMV of more than $20,000, the maximum amount which can be borrowed is 60% of the purchase or valuation price.
| Loan Breakdown for Tesla Model 3 with OMV at $73,000 | Loan Breakdown for balance of COE $60,720 |
| 60% Loan = $43,800 40% Cash = $29,200 Using the loan details, Interest Rate = 3.2% Term = 7 Years Total Interest = $9,811 Monthly Instalment = $638 | Using the loan details, Interest Rate = 2.78% Term = 7 Years Total Interest = $11,636 Monthly Instalment = $864 |
So, how much does it really cost to own a Tesla?
Based on the calculations done in Part 1 and Part 2,
- Cost of Tesla (At Purchase) = $170,280
- Estimated Monthly Costs = $2,731 / month
Will you be buying a Tesla Model 3 or buying a part of the Tesla company instead?
Or do you prefer to invest like Cheng, Dr Wealth’s SaaS investing trainer who prefers to find stocks with better growth opportunities to grow his portfolio?
