ELI5: Why are cars so expensive in Singapore?

Cars are expensive in Singapore because the government makes them very costly to own to control traffic and pollution.

Imagine Singapore is like a small cookie jar. If everyone wants a cookie (a car), the jar will empty very quickly! To make sure everyone gets a fair share of the "cookie jar" (road space), the government makes it more expensive to get a cookie.

Here's how they do it:

• Certificate of Entitlement (COE): Think of this as a special ticket you must buy before you can even buy the car. The COE allows you to own and drive a car for 10 years. Because there are a limited number of these tickets available, the price can be very high depending on how many people want one. It's like a popular toy that everyone wants, so the price goes up!
• High Taxes: When you buy a car, the government adds a lot of extra money on top of the car's actual price. This includes things like registration fees and taxes. It's like buying a candy bar, but the store adds a huge "special tax" on top of the price.
• Road Tax: Every year, you have to pay a tax just for using the roads. This is like paying a small fee every time you want to play on a playground.
• Additional Registration Fee (ARF): This is another tax based on the car's value. The more expensive the car, the higher the ARF.