OBU installation: cost and checks before 1 January 2027

OBU installation becomes compulsory on 1 January 2027: from that date every Singapore-registered vehicle needs an ERP 2 on-board unit (OBU) to travel on public roads. If yours still has the old in-vehicle unit (IU), book an LTA-authorised workshop now. Installation is free only within three months of LTA's final reminder; after that it costs S$70 for a car and S$35 for a motorcycle.

More than 93% of vehicles had an OBU by 31 January 2026. This guide is for the rest, and for anyone buying a used car, sharing one or driving a Malaysia-registered car in, as other rules change that day too.

Do I still need to install an OBU, and is it still free?

Yes, unless your vehicle is exempt. The exemptions in the gov.sg explainer are vehicles not used on public roads and those on the Restricted Use Scheme, Keeping Scheme and the Classic and Vintage schemes. Classic and vintage owners may still ask for a free OBU, subject to the workshop's technical assessment, LTA says; without one they pay the flat daily fee from 1 January 2027.

Whether yours is still free depends on when LTA issued your final reminder: if more than three months have passed, plan on paying S$70 for a car or S$35 for a motorcycle. OneMotoring points owners to go.gov.sg/book-obu to check eligibility for free installation and find an authorised workshop for their make. We could not open that booking service, so confirm your own status there.

Leaving it is not an option: LTA says serious cases of non-installation, tampering or unauthorised OBU services can face fines of up to S$20,000, up to 12 months' jail, or both.

How to book an OBU installation before the deadline

1. Check eligibility and pick a workshop at go.gov.sg/book-obu. You need not wait for LTA's letter, OneMotoring says, and can combine the installation with a servicing appointment.
2. Use an authorised workshop only. LTA says unauthorised persons should not offer OBU installation, repositioning, removal, repair or modification.
3. Bring the right card. IU CashCards with a microchip do not work in the OBU, OneMotoring's payment options page (last updated 29 September 2026) says; CEPAS cards such as the EZ-Link Motoring Card, NETS FlashPay and NETS Motoring Card do. LTA gives a complimentary NETS Motoring Card at your first OBU installation, on a limited basis.
4. Collect the starter kit, a printed booklet on the OBU's features, troubleshooting and warranty, and keep it with the car's papers.
5. Choose how to pay. Besides a card, OneMotoring lists backend payment through AXS Drive, EZ-Link Motoring Service and NETS Virtual CashCard. Not all carparks support backend payment yet, so keep a valid CEPAS card in the car.
6. Leave season parking alone. OneMotoring says arrangements tagged to your IU need no update.

Take dated photos of the dashboard before and after. If a workshop damages it and will not put it right, our guide to filing a small claim explains what else to keep.

What changes for missed ERP charges from 1 January 2027?

Missed ERP charges stop being a traffic offence and become an administrative matter, and the duty to pay moves from the driver to the owner. From 1 January 2027, an owner who does not pay within five days of LTA's SMS cannot transact with LTA until the charge and a S$10 administrative fee are paid. The services denied include road tax renewal, use and encashment of the PARF rebate and COE residual, an application to transfer the vehicle's registration, refunds of Off-Peak Car rebates and unused road tax, and road tax rebates for school buses.

An illustrative example, with a fictional family: Mrs Lim owns the car, and her son borrows it in January 2027 and passes a charging point with no card in the OBU. The SMS goes to Mrs Lim as the owner. If neither pays within five days, she cannot renew the road tax until the charge and the S$10 fee are settled, though she was not driving.

Agree in advance who pays missed charges on a shared car, and set up backend payment or auto top-up. Missed payments can also be paid through the OBU itself, OneMotoring says. Check any SMS that asks you to tap a link and pay: our checks before you pay online apply here too.

Buying or selling a used car around the deadline: what to check

Before you agree a price on a car changing hands around the deadline:

• Is an OBU fitted? Ask to see it working. If the car still has an IU, agree who books the installation and who pays the S$70 if the free window has passed.
• Are there missed ERP charges? From 1 January 2027 unpaid charges block the owner's application to transfer the registration, so ask the seller to settle them first.
• Has the car been modified? Since 27 February 2026 an individual faces fines of up to S$20,000, two years' jail, or both, for illegal alterations, LTA says. Ask what was changed and by whom.
• What does the loan really cost? If you are financing the purchase, our loan interest calculator turns a flat rate into the total interest you would pay.

Malaysia-registered and classic cars: OBU or flat daily fee?

The OBU is optional for foreign-registered vehicles, which have been able to install one since 1 April 2026. Without one, from 1 January 2027 they pay S$10 a day (S$3 for a motorcycle) for every ERP operational day they spend in Singapore. ERP operates Mondays to Fridays, not on weekends or public holidays, and ends at 1pm on the eves of New Year's Day, Chinese New Year, Hari Raya Haji, Deepavali and Christmas, OneMotoring says.

The arithmetic for a car, using the S$158.70 OBU price that applies until 31 December 2026 (illustrative visit patterns, counting only ERP operational days):

• 15 days a year: S$150 in flat fees, slightly less than the OBU.
• 16 days a year: S$160, slightly more than the OBU.
• Two days a week for 48 weeks: 96 days, or S$960 a year in flat fees.

So a car that will be in Singapore on 16 or more ERP operational days a year would spend more on flat fees than on an OBU bought before the end of December. This leaves out the ERP charges an OBU-fitted car pays at charging points, which depend on your route. The S$158.70 price is stated only until 31 December 2026; we found no price for after that.

Existing classic and vintage owners have a simpler choice: LTA offers them a free OBU where the workshop finds it technically feasible; without one, they pay the flat daily fee.

More guides on looking after what you own are in the ownership topic.

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