While the rise in rental car numbers may seem like a natural market correction, it introduces significant risks and uncertainties for both the public and the transport industry. The reliance on rental fleets creates a precarious situation where the cost of mobility is tied to the volatile COE market. Rental companies, wary of being stuck with expensive assets if premiums drop, may pass these risks onto consumers through fluctuating rental rates, making it difficult for families to plan their long-term transport budgets.
There are also valid concerns regarding the quality and safety of a fleet that is constantly changing hands. Unlike private owners who have a vested interest in the long-term maintenance of their vehicles, rental and car-sharing fleets are subject to heavy, varied usage by a wide range of drivers. Without stringent, specialized regulations for the maintenance and inspection of these high-turnover vehicles, the public could face increased risks on the road. The lack of a 'personal' connection to the vehicle may also lead to less responsible driving behavior, impacting overall road safety.
Furthermore, the shift toward rental-heavy transport does not necessarily solve the underlying issue of congestion. If the ease of renting leads to more cars being on the road at peak times, the benefits of reduced private ownership could be negated. Policymakers must be cautious about assuming that this trend is a positive evolution; it may simply be a symptom of a market where the cost of entry has become so high that it forces citizens into a cycle of perpetual, unpredictable rental costs rather than stable, long-term ownership.