Founded in 1904 in Manchester, England, by Charles Rolls and Henry Royce, Rolls-Royce has a reputation as one of the world’s most luxurious and prestigious automobile manufacturers. Rolls-Royce owners are drawn to the vehicle not just because of its built quality but also because its high price reflects social status.
Rolls-Royce vehicles could even be considered a Veblen good, which is a type of good for which demand increases as the price rises, contrary to standard economic theory that suggests demand should fall when prices increase. In the case of Veblen goods like Rolls Royce, the higher price enhances their desirability because they serve as status symbols and convey wealth, prestige and exclusivity.
According to LTA, there are 762 Rolls-Royce in Singapore as of 2023. That means most of us reading this article aren’t driving one.
How much does it cost to own a Rolls-Royce in Singapore? While this might seem like a distant dream for most of us, it’s still fascinating to explore the actual costs involved and consider who might have the means to afford such a luxury.
Buying A Rolls-Royce
Rolls-Royce Motor Cars Singapore doesn’t publish its prices online, but based on listings from parallel importers on platforms like sgcarmart, the cost of a brand new Rolls-Royce in Singapore ranges from $1,322,988 (Rolls-Royce Ghost Series II) to $2,378,988 (Rolls-Royce Phantom).
In the used car market, prices are very high as well, likely because such cars—similar to a Rolex—retain their value well. Even a preowned Rolls-Royce Ghost that was registered in 2011 and has 7 years left on its second COE (expire 11/2031) is advertised at $481,200.
If you purchase the car for $480,000 using traditional financing, you would need to make a 40% downpayment, which comes to $192,000 upfront. With a 72-month loan at an interest rate of 2.75%, your monthly instalment would be approximately $4,660. This gives you an idea of the financial commitment required to own a luxury vehicle like a Rolls-Royce, even when buying preowned.
Owning A Rolls-Royce
Owning a car is more than having enough money to buy it—especially a Rolls-Royce, where the ongoing costs can be substantial.
For a pre-owned 2011 Rolls-Royce Ghost, the annual road tax alone is $10,405. Insurance adds another hefty expense. While we couldn’t find specific quotes for Rolls-Royce insurance, as a comparison, insuring a Range Rover costs around $5,000 per year (before discounts), so expect the Rolls-Royce’s insurance to be at least that, if not more.
Maintenance costs are another major consideration. According to various sources, you can expect to spend around $5,000 a year on routine maintenance. However, this excludes major services and parts replacement, which can easily add $10,000 or more to your bill.
Between road tax, insurance, and maintenance, you should be prepared to allocate at least $20,000 a year. If major repairs or replacements are required, this number will rise significantly.
When you factor in the $4,660 monthly instalment for the pre-owned Rolls-Royce Ghost, the yearly cost of owning the car is approximately $76,000, not including the $192,000 downpayment.
For a brand-new Rolls-Royce, these costs will be even higher.
The old adage rings true: when it comes to buying a Rolls-Royce, if you have to ask how much it costs, chances are, it’s probably out of reach.
Read Also: How Much Does It Cost To Own A Porsche In Singapore?
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