Bike permits are more expensive than new bikes in Singapore, check details

Getting a bike permit is getting more expensive than a new bike in Singapore. The cost of a 10-year motorbike permit hit a record 12,801 Singapore dollars ($8,984) in October, according to data from the Land Transport Authority. That’s not only over 200 percent more over the last four years, but more than the cost of a new entry-level motorcycle.

Currently, a rider has to pay close to S$20,000 to own and ride a base motorcycle worth S$5,000.

That will eventually trickle down to vendors who zigzag around the island on low-end bikes, Nathan Peng, a political science lecturer at Singapore Management University, told Bloomberg. Currently, it costs more than S$11,000 to renew an existing permit — less than a new one, but almost six times the price a decade ago.

Singapore has decided to increase the price of vehicle permits, called certificates of competency, in a bid to limit the number of motorbikes and cars on the road.

Media reports said the number of motorcycles and cars was limited to around 142,000 and 650,000 respectively.

While the owner of the bikes can pay the increased fees directly, those who rent will likely see their fees go up. It should be noted here that several people who do the work of suppliers rent vehicles.

The Straits Times reported that many of the Singapore-based motorcycle leasing companies are considering increasing their rate to offset higher permit costs. GigaRider, a company informed that it is likely to raise rent by 10% in the first quarter of 2023 for its enterprise customers. Similarly, Grab noted on its website that rental charges may increase due to the COE price hike.

In addition to targeting motorcycles, Singapore is also trying to limit cars on the roads. It has increased the price of entry-level car permits to over S$80,000, almost three times as much as in 2018.

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