5 Essential Considerations Before Signing a Car Leasing in Singapore (2025 Edition)

In 2025, Singapore’s car leasing market is more dynamic than ever. With COE premiums now exceeding S$150,000, a growing car-lite culture, and the rapid rise of electric vehicles (EVs), leasing is becoming the go-to choice for drivers seeking flexibility without long-term ownership costs.

According to the Land Transport Authority, EV adoption in Singapore has surged, with more than 40% of new car registrations in early 2025 being electric. This shift, combined with new lifestyle patterns and urban mobility priorities, means leasing decisions now require careful consideration.

Here’s a comprehensive guide to the five key factors you should evaluate before signing a lease in 2025.

1. What’s Really Included in the Car Leasing Package?

Leases are more than just a car—they’re a bundle of services. In 2025, many providers advertise “all-inclusive” packages, but the contents can vary greatly.

Standard inclusions to check in you car leasing package:

• Road tax coverage — Ensure it’s fully covered throughout the lease term.

• Servicing & maintenance — Scheduled servicing and wear-and-tear replacements.

• Insurance — Comprehensive coverage with a reasonable excess.

Premium add-ons worth considering:

• 24/7 roadside assistance

• Replacement vehicle during servicing or repairs

• Accident claims support

• Tyre and battery replacement

💡 Tip: Ask for a full breakdown in writing to avoid assumptions. Premium providers like Tokyo Century Leasing Singapore outline every inclusion upfront for transparency.

2. Transparency in Costs—Watch the Fine Print

A competitive monthly rate can be misleading if there are hidden charges. In 2025, common extra costs in Singapore leases include:

• Mileage overuse penalties — Typically charged per km above the cap.

• Early termination fees — Especially relevant if your plans change mid-lease.

• Return condition fees — For dents, scratches, or interior damage.

• Insurance excess — Payable in case of accidents.

💡 Tip: A reputable leasing partner will walk you through each potential cost before you sign. At Tokyo Century Leasing, our contracts are plain-language and upfront, so you always know where your money is going.

3. Mileage Flexibility on Your car leasing to Match Your Driving Habits

The way Singaporeans use cars in 2025 is more varied than before. Hybrid work arrangements, weekend-only driving, or frequent cross-border trips to Malaysia mean mileage needs differ drastically.

Typical annual mileage caps range from 12,000 to 25,000 km—but exceeding them can mean hefty surcharges.

💡 Tip:

• If you drive less, negotiate a lower cap for a better monthly rate.

• If you drive more, choose a plan with an extended mileage allowance to avoid penalties.

Tokyo Century Leasing offers customisable mileage plans, so you only pay for what you truly use.

4. Flexibility to Upgrade or Swap Vehicles on your car leasing agreement

In 2025, lifestyle changes are happening faster—new jobs, family growth, or even shifting to an electric vehicle. A rigid lease can lock you in when your needs evolve.

Model swap options are becoming more common, allowing you to switch from, say, a compact sedan to a spacious MPV mid-term, or try an EV without starting a whole new lease.

💡 Tip: Choose a leasing company that supports mid-lease flexibility—Tokyo Century Leasing allows vehicle upgrades and swaps for select plans.

5. EV & Sustainability Readiness

Singapore’s push for electric mobility is undeniable:

• Over 40% of new car registrations in Q1 2025 were EVs.

• Every HDB carpark is slated to have EV chargers by end-2025.

• Government rebates (like EV Early Adoption Incentives) are still in play.

Leasing is an excellent way to experience EVs without committing to long-term ownership, especially while battery technology is evolving.

💡 Tip: Look for providers with a diverse EV fleet and partnerships with charging networks. Tokyo Century Leasing offers EV and hybrid leasing options, letting you explore green mobility with confidence.

Additional 2025 Trends That Influence Car Leasing Decisions

• COE Alternatives: Leasing bypasses the upfront cost of COE while still giving you access to a new or nearly-new car.

• Car-Lite Lifestyle: With improved MRT lines, cycling paths, and ride-hailing availability, many drivers prefer shorter-term leases over full ownership.

• Digital Leasing Experience: Virtual consultations, online booking, and instant quotes are now standard in the premium leasing space.

Why These 5 Considerations Matter

In today’s market, the right lease gives you:

• Financial predictability — Fixed monthly costs.

• Flexibility — Switch cars or mileage as your life changes.

• Peace of mind — All servicing and insurance handled.

• Sustainability — Access to the latest EV models.

The Tokyo Century Leasing Promise

At Tokyo Century Leasing Singapore, we design every lease around these principles:

• All-inclusive, transparent pricing — No hidden fees, ever.

• Flexible terms — Mileage, vehicle upgrades, and PHV options.

• Future-ready fleet — Petrol, hybrid, and electric cars available.

• Premium support — From booking to returns, every step is seamless.

Your Next Move

Leasing in 2025 isn’t merely about driving—it’s about choosing mobility that adapts to your life. Whether you’re navigating rising COE costs, exploring electric and hybrid options, or embracing a car-lite lifestyle, the right leasing partner matters.

At Tokyo Century Leasing Singapore, we understand what modern drivers need. Our all-inclusive packages cover everything—routine servicing, road tax, insurance, 24/7 roadside assistance, and even replacement vehicles during repair—so you can enjoy stress-free mobility right from the start tcls.com.sg. We also offer zero down payment, fixed monthly costs, and the choice to drive a fresh model every 2–3 years tcls.com.sg. Plus, enjoy the convenience of a dedicated account manager and the flexibility to drive into Malaysia, hassle-free tcls.com.sg.

Discover how easy modern leasing can be—check out our offerings at Car Leasing Singapore. Let’s find a plan that fits your 2025 lifestyle, seamlessly and confidently.