Car rental business booming due to higher COE

Higher COE prices are driving people to cheaper and more flexible options.

Among them - car rentals and car sharing.

The higher COE has been good for car rental firm "Popular Rent A Car".

It said business is up by about 20 per cent from a month ago.

"We understand that they have put their plans to buy a car on hold, or if they have booked a car and they are unsuccessful in the COE , they do not want to top up the price. So they are basically coming to rent a car instead," explained Ho Kok Kee, GM of Popular Rent A Car.

Choong Tat Soon, head of Rental & Leasing at Kah Motor said: "With the COE going up, there are more enquiries for long term rental in terms of weeks or even for a year. We have customers coming in... They take up a rented car for months until new cars become affordable".

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