From the price of gas to the cost of food, inflation has hit every part of the economy. And in some parts of Asia, it's added an extra level of cost to buying and using a car.
In two of Asia's main commercial centers, the cost of operating a car is driving some people out of the market.
Hong Kong and Singapore have both had laws and practices on the books for years that discourage private vehicle ownership. Policy makers want to make it more economical for people to use mass transit and reduce the use of cars.
This year, some policy changes have combined to push certain prices even higher.
Take Hong Kong's “First Registration Tax” — a onetime charge on new or imported vehicles.
It starts at a rate that's nearly half the cost of the car. The more expensive the car, the bigger the tax.
With some pricey rides, the tax can be higher than the value of the vehicle.
Buyers of electric vehicles used to get a discount — but that practice stopped earlier this year.
In Singapore, there's a similar system — car buyers need a “Certificate of Entitlement.”
Prices for those start at more than U.S. $100,000, and they just went a little higher.
That's for the basic charge — the cost for luxury vehicles is even more.
One category seeing strong demand: electric vehicles. That's because Singapore's current incentives for EVs will be slashed at the end of the year.
