Long-Term Car Leasing in Singapore: How Drivers Can Manage Rising COE Costs in 2026

Owning a car remains an important milestone for many Singaporeans. However, rising COE prices in 2026 have increased the overall cost of vehicle ownership, prompting many drivers to compare different mobility solutions before making a decision. With Category A and Category B COE premiums remaining well above S$100,000, drivers must factor in not only the cost of the vehicle itself, but also registration fees, insurance, maintenance, and financing expenses.

As a result, more Singaporeans are evaluating both vehicle ownership and long-term car leasing to determine which option best suits their budget, lifestyle, and driving needs. Instead of committing significant upfront capital to purchase a vehicle, leasing provides access to reliable transportation through predictable monthly payments and comprehensive vehicle support.

👉 In this article, we explore why long-term car leasing is becoming an increasingly popular option and how it can help drivers manage rising COE costs in 2026

Table Of Contents

• Understanding Singapore’s COE System in 2026
• Why Are COE Prices So High in 2026?
• Why Long-Term Car Leasing is The Popular Option?
• Who Is Long-Term Car Leasing Best Suited For? Personal & Corporate Long-Term Car Leasing Solutions
• Explore Long-Term Car Leasing Solutions with Tokyo Century Group Singapore

Understanding Singapore’s COE System in 2026

Before exploring how long-term car leasing can help manage vehicle costs, it is important to understand why COE premiums remain one of the biggest financial barriers to car ownership in Singapore.

What Is the COE?

The Certificate of Entitlement (COE) is a quota-based system administered by Singapore’s Land Transport Authority (LTA) to regulate the vehicle population on the country’s limited road network. Introduced in 1990, the system requires prospective vehicle owners to secure a COE through a competitive bidding exercise held twice a month.

COE prices are determined by market demand and available quota supply, which means premiums can fluctuate significantly over time. Once secured, a COE allows a vehicle to be registered and used in Singapore for 10 years. At the end of this period, owners can either deregister the vehicle or renew the COE by paying the Prevailing Quota Premium (PQP), which is based on the moving three-month average of COE prices.

Latest COE Premiums in June 2026

COE premiums have remained elevated throughout 2026, continuing to drive up the cost of vehicle ownership in Singapore. Based on the first COE bidding exercise in June 2026, Category A premiums for smaller passenger cars reached S$126,009, while Category B premiums for larger and more powerful vehicles climbed to S$126,989. Meanwhile, Category C COEs for commercial vehicles closed at S$94,000, and Open Category COEs reached S$129,000.

For drivers considering COE renewal, the Prevailing Quota Premium (PQP) also remained high, with Category A standing at S$118,357 and Category B at S$121,218 in June 2026. These figures highlight the substantial financial commitment required not only to purchase a vehicle but also to maintain ownership over the long term.

According to the Land Transport Authority (LTA), COE prices continue to be supported by sustained market demand and limited quota supply. As premiums remain above the S$100,000 mark for most passenger vehicle categories, many drivers are taking a closer look at both vehicle ownership and long-term car leasing to better understand which option aligns with their financial priorities and mobility requirements. This has contributed to growing interest in long-term car leasing as a way to access personal mobility with greater cost predictability and reduced vehicle management responsibilities compared with traditional ownership.”

Why Are COE Prices So High in 2026?

Several factors continue to keep COE premiums elevated in Singapore. As demand for vehicles continues to outpace the available COE supply, many industry observers expect premiums to remain relatively high in the near future. This has encouraged more drivers to compare different vehicle financing and mobility options, including long-term car leasing, before committing to a vehicle.

Strong Demand from Car Buyers

Despite rising vehicle ownership costs, demand for cars in Singapore remains resilient. Personal mobility continues to be a priority for many professionals, business owners, expatriates, and higher-income households who value the convenience and flexibility of having a private vehicle. 

Growing Popularity of Electric Vehicles (EVs)

The arrival of more affordable EV brands has attracted a new wave of buyers into the market. As more consumers consider switching to electric vehicles, competition for available COEs has intensified.

Ongoing Demand from Private-Hire Operators

Private-hire companies continue to renew and expand their fleets, creating additional demand during COE bidding exercises. This sustained purchasing activity contributes to stronger competition across several COE categories.

Fewer Vehicle Options Available

Following the cessation of new diesel car registrations in Singapore from January 2025, buyers now have fewer vehicle choices. This has concentrated demand towards petrol, hybrid, and electric vehicles, increasing competition for the corresponding COEs.

Changes to EV Incentives

Adjustments to government EV incentives and emissions schemes in recent years encouraged some consumers to bring forward their vehicle purchases. This surge in buying activity contributed to stronger demand and higher COE premiums entering 2026.

Why Long-Term Car Leasing is the Popular Option?

As COE premiums and vehicle ownership costs continue to rise, many drivers are comparing long-term car leasing alongside traditional car ownership to determine which option offers the right balance of flexibility, convenience, and cost predictability. Long-term leasing allows you to access a vehicle through a fixed monthly payment for an agreed period, typically between 12 to 60 months, while reducing many of the ongoing financial and administrative responsibilities associated with vehicle ownership.

Compared with traditional vehicle ownership, long-term car leasing allows drivers to leave vehicle depreciation, COE renewal, resale considerations, and much of the ongoing vehicle management to the leasing provider. At the end of the lease term, you simply return the vehicle, renew your lease, or switch to a different model based on your needs.

Why Businesses Choose Corporate Car Leasing

Corporate car leasing allows businesses to provide employees with reliable transportation without the large upfront capital expenditure associated with purchasing company vehicles. With fixed monthly payments, simplified fleet management, and maintenance support, businesses can better manage operating costs while keeping their teams mobile.

What Does a Long-Term Car Lease Typically Include?

At Tokyo Century Leasing Singapore, our long-term car leasing solutions are designed for both individual drivers and businesses. Whether you require a single vehicle for personal use or a fleet of company vehicles, our leasing packages consolidate key running costs into one predictable monthly payment. Depending on the lease arrangement, the long-term car leasing may include:

• Full fleet support for SMEs and corporates
• Wide selection of sedans, SUVs, and MPVs
• Servicing, insurance, and road tax included
• Drive worry-free with 24/7 assistance

Flexible Lease Terms to Suit Different Needs

Tokyo Century Leasing Singapore offers flexible lease durations to accommodate different mobility requirements. Lease periods typically range from 12 to 60 months, depending on the vehicle and leasing arrangement. Whether you require a vehicle for personal use, an expatriate assignment, or long-term business operations, flexible lease options allow you to choose a duration that aligns with your lifestyle or operational needs.

Personal & Corporate Long-Term Car Leasing Solutions

Long-term car leasing is a flexible mobility solution that caters to a wide range of drivers in Singapore. Whether you are looking for predictable monthly costs, simplified vehicle management or greater flexibility, leasing may be a suitable option for your needs.

• Working professionals and families who want reliable transportation with predictable monthly costs, without the long-term commitment of vehicle ownership.
• Expatriates and foreign professionals residing in Singapore for a few years who require convenient access to a vehicle without dealing with the complexities of purchasing, maintaining, and eventually selling a car.
• Business owners, SMEs and corporate organisations seeking a cost-effective corporate car leasing solution to support employee transportation, manage company fleets and maintain predictable operating expenses.

Explore Long-Term Car Leasing Solutions with Tokyo Century Group Singapore

Rising COE costs continue to shape how drivers plan their next vehicle. While purchasing a car remains the preferred choice for many, long-term car leasing has become an increasingly popular option for those seeking greater flexibility, predictable monthly costs, and a simplified ownership experience.

At Tokyo Century Group Singapore, we provide long-term car leasing solutions tailored to individuals, families, expatriates, and businesses. With flexible lease durations, a diverse range of vehicles, and comprehensive support services, our leasing programmes are designed to help you stay mobile with confidence and ease.

Ready to Explore Long-Term Car Leasing?

Whether you’re looking for a personal vehicle, a corporate car leasing solution, or fleet management services for your business, our team is here to help. Send us an email today to explore long-term car leasing options tailored to your needs and discover a smarter way to drive in 2026!