Electric vehicles (EVs) are gaining traction in Singapore. With rising environmental concerns and strong government incentives, the demand for EVs has soared. However, leasing an EV can come with its own set of challenges. Beyond the sleek designs and impressive fuel savings, there are hidden fees that may surprise you.
Whether you're a business owner exploring sustainable fleet options or an individual looking for an eco-friendly drive, understanding these costs is critical. Don’t let unexpected charges drain your budget! Let’s dive into the most common hidden fees and how to avoid them.
1. "Why Is Road Tax for EVs Higher?" — Understanding EV Road Tax in Singapore
One of the first surprises lessees face is the road tax. Yes, EVs might be greener, but the government still imposes an additional flat component on top of the standard annual road tax.
Flat fee for EVs: S$700 per year, regardless of the car’s capacity.
Why? This charge helps offset fuel duties that EV owners otherwise avoid.
For example, if you lease a small EV with an annual road tax of S$400, you’re actually paying S$1,100 in total. That’s a sharp increase! For higher-end EVs with bigger batteries, the costs escalate quickly.
Tip: Always factor in this road tax surcharge when budgeting for your EV lease. If you’re leasing long-term, the S$700 per year can add up significantly.
2. "How Expensive Is the COE for EVs?" — Certificate of Entitlement Realities
The Certificate of Entitlement (COE) is unavoidable for any vehicle in Singapore, and it’s particularly steep for EVs. The demand for cleaner energy options drives up COE prices, which directly impacts leasing costs.
As of April 2023, here’s what you’re looking at:
Category A (smaller EVs): S$96,501.
Category B (larger, more powerful EVs): S$118,501.
Compared to traditional petrol vehicles, these prices can be significantly higher. And because leasing companies factor COE into their lease prices, the cost often gets passed on to you.
Tip: If you’re leasing an EV in Singapore, ask for a breakdown of the COE contribution. Opt for promotions or lease packages that lock in lower COE rates when possible.
3. "Will I Have a Mileage Limit?" — Watch Out for Restrictions
Most EV leasing companies in Singapore do not impose mileage limits for standard EVs. However, this rule changes when you’re dealing with high-performance or luxury EVs. Think Teslas or other exotic models.
Mileage caps are common for luxury EVs.
Exceeding the limit: Penalties can be harsh, often charged per kilometre.
For example, if your agreement caps you at 10,000km annually but you drive 15,000km, you’ll face excess charges that add up quickly.
Tip: If you’re a frequent driver, clarify mileage terms upfront. Choose a lease plan without mileage limits, or negotiate for a cap that fits your usage.
4. "What If I Return the EV Early?" — Early Termination Fees
Life happens. Maybe your circumstances change, or you realise the EV isn’t for you. If you decide to end your lease early, prepare for early termination fees. These fees are often non-negotiable and are calculated based on the remaining months in your contract.
For instance:
Shorter leases: Early termination fees tend to be higher.
Long-term leases: While the charges might be less severe, they’re still significant.
Tip: Look for leasing companies that offer flexible terms or lower penalties for early returns. Read the fine print carefully!
5. "Who Pays for Wear and Tear?" — Managing Costs for Vehicle Condition
When leasing an EV, “normal” wear and tear is expected. But what constitutes excessive wear and tear? That’s where things get tricky.
Examples of excessive wear: Deep scratches, damaged rims, stained interiors, or significant dents.
Repair costs: These can be expensive and are billed when you return the EV.
Leasing companies often inspect the vehicle meticulously at the end of your lease. Anything deemed excessive will be charged—sometimes at inflated rates.
Tip: Treat your EV with care. Before returning it, consider getting minor issues repaired independently to save costs.
6. "How Much Does Charging an EV Cost?" — Charging Fees Explained
Charging your EV comes with its own set of expenses. While it’s cheaper than refuelling petrol, the price varies depending on where and how you charge.
Public chargers: Costs range from S$0.40–S$0.50 per kWh.
Private chargers (e.g., condo installations): Rates may differ and often include additional service fees.
Fast chargers: Though convenient, these are pricier than regular chargers.
The time required to charge an EV also depends on the car model and charger type:
Standard chargers: 6–8 hours.
Fast chargers: 30–60 minutes for 80% capacity.
Tip: Choose an EV leasing company that offers charging benefits, such as partnerships with charging networks for discounted rates.
7. "What About the Warranty?" — Know What’s Covered
Warranties can be a lifesaver, but not all warranties are created equal. When leasing, it’s vital to clarify what your warranty covers and what it doesn’t.
Key questions to ask:
Battery coverage: How long is the EV battery warranty?
Maintenance coverage: Does the warranty include servicing?
Parts and repairs: Are you liable for replacements beyond normal wear?
Without clear warranty terms, unexpected repair costs could come your way.
Leasing an EV Made Simple with Evfy
Navigating the hidden costs of EV leasing can feel overwhelming, but it doesn’t have to be. At Evfy, we prioritise transparency, affordability, and flexibility. Our lease plans include:
Competitive rates with no hidden fees.
Transparent breakdown of road tax, COE, and mileage terms.
Exclusive charging partnerships for affordable EV charging.
Flexible return options to suit your lifestyle.
Ready to make the switch to electric driving without the stress? Contact Evfy today to find the perfect EV lease plan tailored to your needs. Drive smarter, greener, and worry-free!