The number of private cars in Singapore has fallen to its lowest point since 2019, as the escalating cost of vehicle ownership pushes residents towards alternative options such as leasing, car-sharing, and ride-hailing services. This shift in preference is reflected in the figures at the end of June, where private cars made up 79% of the total car population, a decline from 82.5% in 2021. Meanwhile, rental vehicles have seen a surge, capturing a record 14.9% share of the market.
Industry experts point to the consistently high Certificate of Entitlement (COE) premiums as a major factor driving the trend away from car ownership. The COE is a significant component of vehicle ownership costs in Singapore, and its sustained high levels have made owning a car increasingly unaffordable for many residents.
This financial pressure has led to a growing demand for rental options, prompting leasing companies to respond by expanding their fleets. The flexibility and cost-effectiveness of leasing, coupled with the ability to avoid hefty ownership expenses, make it an attractive alternative for many.
Additionally, a considerable number of motorists are opting for public transportation or shared mobility services to cut down on monthly expenses. The convenience and reduced financial burden of these services appeal to those looking to maintain mobility without the high costs associated with owning a vehicle.