Car ownership in Singapore is a relatively uncommon phenomenon due to the high cost barriers and hassle of maintaining a vehicle. In 2019, Singapore’s car ownership rate was a mere 11%, and the cost of a new compact car was estimated to be a staggering $99,000. This included a Certificate of Entitlement (COE) price of over $30,000, which gives Singaporeans the legal right to own a car. In the UK and US, the same car would cost $24,000, a quarter of the price you would pay here.
For these reasons, long-term car rentals are quickly gaining traction as a viable alternative, offering the convenience of getting around the island quickly without the responsibility that comes with car ownership. In this article, we will examine some of the reasons why more and more Singaporeans are opting for long-term car rentals. But before we delve into the rationale, we must first understand what long-term car rentals are, and how they differ from other types of car rental.