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Car insurance - Car ownership vs e-hailing

Cost of owning a car vs e-hailing price

Maintenance costs and road tax are some costs when owning a car. However, is it more expensive compared to e-hailing?

05 Mar 2025

Car ownership and e-hailing in Singapore: Which is best for you?

The cost of owning a car in Singapore can be high, but is it really more expensive than e-hailing daily? Let’s find out.

In Singapore, the age-old question of e-hailing versus owning a car is something that most commuters struggle with daily. Common sense may dictate that e- or ride-hailing is likely the more affordable option, and this is true in most cases. But the answer is not always so straightforward.

In fact, owning a car comes at a fixed cost but e-hailing prices can go up with every trip. If you are heavily dependent on e-hailing services, there may come a point where you cross the threshold of affordability and it becomes more expensive than owning a car.

The cost of car ownership in Singapore

The cost of owning a car is generally calculated based on a 10-year period since new cars will come with a Certificate of Entitlement (COE)1 that has to be renewed every 10 years.

There are a few cost areas associated with owning a car in Singapore:

  • cost of the car (inclusive of COE)
  • road tax
  • insurance premiums
  • parking/ERP/petrol
  • car maintenance cost

As an example, the average price for a car in Singapore ranges from S$120,000 to S$135,000 for a non-luxury car2.

The cost of e-hailing in Singapore

E-hailing prices vary depending on the distance travelled and the time of day, as well as the e-hailing service used. In Singapore, the most popular service is Grab, followed by Gojek, as reported by Statista in their market share report for the ride-hailing transportation industry in the first quarter of 20223. However, a recent piece by CNA shows that Grab and Gojek drivers have experienced a recent decline income, suggesting that the tides might be shifting.

The cost of e-hailing will generally be a lot lower compared to owning a car. Here are the costs associated with taking e-hailing in Singapore:'

  • base fare
  • distance cost
  • time cost

According to Grab's pricing page4, the base fare for a ride is S$3.50, plus S$0.45 per km and S$0.20 per minute.

Which route is the way to go?

To make this as simple a comparison as possible, we have to make a few assumptions for both car ownership as well as for e-hailing. Do note that the figures may also differ slightly as there are many other factors to consider.

For Car Ownership

  • The standard Toyota Corolla Altis 1.6L is used as an example. This particular model is estimated to cost around S$125,000 with an average COE cost of S$92,000.5
  • This model gets an average of 15.4 kms per litre.
  • The interest rate is 1.99% for a car loan of S$60,000. The loan servicing amount is S$813.79 per month, based on a 7-year loan term. This payment covers the total cost of ownership associated with the car loan, including both principal and interest.
  • The average distance travelled per year is 17,500 km with an average petrol price of around S$2.90.
  • The average parking cost is S$110 per month in a multi-storey car park.

Here is the full breakdown of the cost of owning a car in Singapore over one year:

Cost of car ownership  
COE cost S$92,000/10 years = S$9,200
Road tax S$742
Loan servicing S$9,765.48
Insurance S$1,596
Petrol S$3,295
Car maintenance cost S$621
Parking cost S$1,320
Total annual cost S$26,539.48

*Figures and numbers extracted from ValueChampion’s article, The Cost of Car Ownership in Singapore 20236
**Loan Servicing includes both principal repayment and interest
***Parking cost extracted from SingSaver’s article, How Much Does It Truly Cost To Maintain A Car In Singapore7?

For e-hailing

  • As Grab is one of the most popular e-hailing platforms in Singapore, we are using their fares for our cost comparison.
  • We will be using similar values for some of the parameters in the cost of car ownership table for simplicity.
  • The same average distance travelled (17,500 km) per year is used, which equates to around 14.6 km assuming two daily trips.
  • The average number of rides taken for the year is 730 trips.

Here is a breakdown of the cost of taking e-hailing daily over one year:

Cost of e-hailing  
Base fare S$2,555
Distance cost S$7,875
Total annual cost S$10,430

*The figures presented are estimates based on average usage patterns and standard fares
**Individual costs may differ due to factors like specific trip details, surge pricing, and promotions

As can be surmised from the cost comparison tables above, e-hailing daily is considerably cheaper. Nonetheless, the decision depends on your circumstances. If you only need to use a car occasionally, then e-hailing may be best. But if you need to go around regularly, then owning a car may be better long term.

The intangible benefits

Apart from the financial aspect of things, there are also plenty of intangible benefits for both sides of the coin. For instance, the time it takes to wait for your ride or the availability of grabbing a ride during peak hours (such as during thunderstorms) gives the edge to owning a car. In short, the convenience of having a car simply cannot be understated. Yet, with e-hailing, you don’t have to worry about parking or paying for petrol!

Conclusion

For adults who do not have a spouse or family, it is more advisable to use ride-hailing services rather than going through the process of owning a car. However, if you have a small family (three to four family members), it could be a wiser financial decision to own a car. Consider a comprehensive car insurance plan like Great Eastern’s Drive and Save Plus to protect yourself financially in case of unexpected events.

But if you think that only car owners need insurance, think again! It is also equally important for passengers, especially daily commuters, to insure themselves with a reliable personal accident plan. Check out Great Eastern’s Personal Accident Insurance plans like GREAT Protector Active and Essential Protector to find out how you can better protect yourself no matter the situation.

Disclaimer

This article is intended to shed light on the average cost of owning a car versus the average cost of taking e-hailing rides daily. Information correct as at 5 March 2024.

 

Source:

  1. https://onemotoring.lta.gov.sg/content/onemotoring/home/buying/upfront-vehicle-costs/certificate-of-entitlement--coe-.html
  2. https://www.valuechampion.sg/average-cost-cars-singapore
  3. https://www.statista.com/statistics/1312059/singapore-market-share-of-the-ride-hailing-transportation-industry
  4. https://www.grab.com/sg/fare-check
  5. https://www.valuechampion.sg/average-cost-coe-car-ownership-sg
  6. https://www.valuechampion.sg/costs-car-ownership-singapore
  7. https://www.singsaver.com.sg/blog/car-maintenance-cost-in-singapore
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