Electric cars have been seemingly increasing on the roads of Singapore due to the various incentives given by the government. Since internal combustion engine vehicles will be phased out by 2040, let’s take a look at which car is more economical, is it the electric car or petrol car.
Electric cars are increasing in the local market and their prices are getting more and more competitive. A high-powered electric car would cost about SGD$150,000 before COE which is basically half the price of a sports car.
Incentives for electric cars
Considering that electric cars are now currently pricier than petrol cars, the government has recently introduced a few incentives.
Firstly, they lowered the Additional Registration Fee (ARF) floor from $5,000 to zero for electric cars and taxis registered from Jan 2022 to Dec 2023.
Secondly, the EV Early Adoption Incentive (EEAI) scheme that runs now till 31 Dec 2023 allows those who buy fully electric cars to claim up to 45% rebate on the ARF, capped at $20,000.
Lastly, through the Vehicle Emission Scheme (VES), you get $15,000 to $25,000 rebates for new cars, taxis, and imported used cars registered on 1 Jan 2021 onwards.
With lesser moving parts, due to the lack of an internal combustion engine, electric cars have lesser wear and tear.
Charging your electric car is actually cheaper as the electricity used per kilometre is much cheaper than petrol. Besides that, petrol prices are rising continuously in Singapore. Furthermore, finding a charging station will no longer be a problem anymore! This is due to the implementation of 60,000 charging points by 2030 countrywide.
Insurance for electric vehicles can cost more and it is totally logical. Electric cars generally cost more to manufacture such as their unique bumpers and body panels. The insurer has to consider the cost to replace certain parts of the vehicle. Besides that, unique parts may not be commonly stocked and require to be shipped in.
Above all else, safety always comes first! So, before you weigh out your options of purchasing an electric car, remember to get insured with a reliable motor insurance company!