Car ownership in Singapore has become increasingly expensive in recent years, with the rising cost of the Certificate of Entitlement (COE) and the high cost of maintaining a vehicle. Many Singaporeans are now turning to car sharing services as a more cost-effective and convenient alternative to traditional car ownership.
In this blog post, we explore the rise of car subscription services and whether they could be the future of car ownership.
The Cost of Car Ownership in Singapore
Owning a car in Singapore is expensive. In addition to the cost of the car itself, Singaporeans must also pay for the COE, which is a permit that allows them to own and operate a vehicle for a period of ten years. The cost of the COE varies depending on the demand for vehicles and can range from several thousand dollars to over $50,000. In addition to the COE, car owners in Singapore must also pay for petrol, insurance, and maintenance costs.
Car Sharing as a Solution to High COE Costs
In response to the high cost of car ownership, many Singaporeans are turning to car sharing services as a more cost-effective alternative. Car sharing services allow users to rent a car for a short period of time, typically by the hour or day. This means that users can enjoy the convenience of having access to a car when they need it, without having to bear the high costs associated with owning a car.
One of the main benefits of car sharing is that users only pay for the time that they use the car. This means that they can save money compared to traditional car ownership, which requires them to pay for the car even when it is not being used. Additionally, car sharing services often include insurance and maintenance costs, which further reduce the overall cost of renting a car.
The Convenience of Car Subscription Services
The subscription model offers numerous advantages compared to traditional car ownership.
For one, subscription services provide flexibility that car ownership does not. With a car subscription, you can choose from a variety of models and brands, and you can switch to a different vehicle if your needs change. There are no long-term commitments, and you can cancel your subscription at any time without worrying about selling your car.
Also Read: The Impact of Technology on the Rise of Car-Sharing Services
Car subscription services take car sharing one step further, offering users the convenience of having access to a car on a regular basis, without the commitment of owning a car. Car subscription services typically involve paying a monthly fee in exchange for access to a car, which can be used for a certain number of hours or days each month.
One of the main benefits of car subscription services is that they offer users the variety to choose the type of car that they want to use, without having to commit to a long-term lease or loan. This means that users can switch between different types of cars depending on their needs, without having to worry about the cost of buying or selling a car.
Car subscription services also simplify the process of car ownership. With a subscription, you don't have to worry about maintenance, repairs, or insurance which further reduce the overall cost of using a car. The subscription provider takes care of all of these tasks, so you can focus on driving and enjoying your car. Additionally, many car subscription services include roadside assistance and other perks that are typically associated with traditional car ownership.
Lesser cars on the road
One major advantage of car subscription services is that they can help reduce the number of idle cars on the road. In Singapore, many cars sit idle for the majority of the day, taking up valuable parking spaces and contributing to congestion. With a subscription service, cars are utilized more efficiently, as they are shared among multiple subscribers.
Also Read: Demystifying COE: Everything You Need to Know About Owning a Car in Singapore
The Environmental Benefits of Car Sharing and Car Subscription Services
In addition to the cost savings and convenience, car sharing and car subscription services also have environmental benefits. By reducing the number of cars on the road, these services can help to reduce traffic congestion and air pollution. Additionally, car sharing services often include electric or hybrid cars, which produce less pollution and are more environmentally sustainable than traditional petrol or diesel cars.
Moreover, car subscription services can help reduce the financial burden of car ownership. In Singapore, the cost of purchasing a car is high due to the Certificate of Entitlement (COE) system, which requires car buyers to bid for a quota to own and operate a car for 10 years. In addition, car owners must pay for maintenance, repairs, insurance, and parking fees, which can add up to a significant amount over time. With a car subscription service, the monthly fee covers all of these expenses, making car ownership more affordable and accessible.
The rise of car subscription services has not gone unnoticed by car manufacturers. Several major automakers, including BMW, Audi, and Volvo, have launched or considering subscription services. These services offer a variety of benefits, including access to premium models and the ability to switch cars as often as every month.
Car subscription services is the next level of car ownership and are on the rise in Singapore, offering users a cost-effective, convenient, and environmentally sustainable alternative to traditional car ownership. With the high cost of the COE and the cost of maintaining a car, car sharing and car subscription services have become increasingly popular among Singaporeans who are looking for a more flexible and affordable way to rent a car.