Car rental can be a cost-effective way to enjoy the flexibility and convenience of having a vehicle without the commitment and expenses that come with owning one. However, during high COE periods, the cost of renting a car in Singapore can also increase significantly, making it less affordable for budget-conscious consumers. In this blog, we'll explore some tips and tricks for saving money on car rental during high COE periods, along with some statistics and figures to support our recommendations.
What is COE and how does it affect car rental prices?
COE, or Certificate of Entitlement, is a system in Singapore that regulates the number of vehicles on the road and encourages the use of public transport. COE is a quota premium that must be paid for the right to register a new vehicle in Singapore and is valid for ten years. The COE amount is determined through a bidding system, with the price fluctuating depending on the supply and demand of vehicles.
COE affects car rental prices because rental companies also need to bid for COEs to purchase and register their vehicles. During high COE periods, when demand for COEs is greater than supply, the COE price can increase significantly, driving up the cost of owning and renting a car.
How can you save money on car rental during high COE periods?
Book early and compare prices
One way to save money on car rental during high COE periods is to book early and compare prices across different rental companies. By booking in advance, you can lock in a lower price and avoid the last-minute surge in demand and prices. Additionally, by comparing prices across different rental companies, you can identify the most competitive rates and promotions and select the one that offers the best value for money.
Also Read: Unlocking the Economic Benefits of Car Sharing: Save Money & Help the Planet
Research say that, the average daily rental rate for a compact car during a high COE period can be S$85. During a low COE period, the average daily rental rate for the same car would be S$60, a 29% decrease. This shows that the cost of car rental can fluctuate significantly depending on the COE period, highlighting the importance of booking early and comparing prices.
Choose a car with a lower COE category
Another way to save money on car rental during high COE periods is to choose a car with a lower COE category. COE categories are determined based on engine capacity, with smaller engines having lower COE prices. By choosing a car with a lower COE category, you can potentially save hundreds or even thousands of dollars on rental fees.
For example, the COE price for a car with an engine capacity of 1,600cc was S$40,001 in August 2021, while the COE price for a car with an engine capacity of 1,000cc was S$33,000, a difference of S$7,001. Choosing a car with a lower COE category can help you save money on rental fees and reduce the impact of high COE prices.
Consider renting from a peer-to-peer car rental platform
Peer-to-peer car rental platforms like Drive lah can be a great option for saving money on car rentals. These platforms allow car owners to rent out their vehicles when they're not using them, often at a lower rate than traditional car rental companies.
Rent for longer periods
Renting a car for a longer period can also help you save money on rental fees during high COE periods. Rental companies often offer discounts for longer rental periods, with some even providing free rental days or reduced rates for weekly or monthly rentals.
Consider booking a long-term rental
If you need a car for an extended period of time, consider booking a long-term rental car in Singapore. This can often be a more affordable option than booking multiple short-term rentals. Plus, you may be able to negotiate a better rate if you are renting for several weeks or months.
Also Read: 11 benefits of long-term car rentals no one tells you about
Check for promotions and discounts
Keep an eye out for promotions and discounts from car rental companies. Many companies offer special deals and discounts throughout the year, so it's always worth checking to see if there are any current promotions that could help you save money on your rental.
Booking your car rental early can often result in significant savings. By booking in advance, you'll have more time to shop around for the best deal and take advantage of any early bird discounts that may be available.
Choose a smaller car
Choosing a smaller car can often save you money on rental fees and fuel costs. Plus, smaller cars are often more fuel-efficient, which can result in additional savings over the course of your rental.
In conclusion, high COE periods can make car rentals more expensive, but there are still ways to save money on your rental. By shopping around, choosing a car from a peer to peer car sharing platform, booking early, and taking advantage of promotions and discounts, you can enjoy the convenience of a rental car without breaking the bank.