All You Need to Know About Car Leasing in Singapore
Leasing a car in Singapore is an increasingly popular option for those who want to enjoy the convenience of having a vehicle without the burden of purchasing one. This article will explore the benefits of car leasing in Singapore and how it can benefit drivers, individuals and businesses alike.
What is Car Leasing?
Leasing a car can be akin to renting a car long-term, comparable in most cases. However, leasing is typically within the span of only two to five years, where the lessee will make monthly payments for the use of a vehicle intended to be lower in cost than if they were to purchase one instead. Car leasing features a shorter contract duration and lower initial expenditures than purchasing generally does. At the end of the lease, you can decide whether you want to renew the lease agreement, purchase, lease another vehicle, or go carless.
Benefits of Car Leasing in Singapore
Car leasing in Singapore offers many benefits for those who don’t want to deal with the hassle of owning a vehicle. With the help of a reliable car rental company in Singapore, it is easy and convenient to enjoy the advantage of leasing a car at little cost. Most car leasing firms handle administrative issues to relieve some of the financial stress. Owning a car comes with one major downside, which is depreciation. In fact, when leasing a car, the depreciation of the vehicle is factored into when determining the monthly sum. With the additions of a sizeable down payment and the monthly ones that come after, you’ve got yourself a costly stream of expenses after buying a car. With leasing, you do not own the car and are free from worrying about depreciation. Purchasing a new car may have its advantages, but they’re often only effective during the warranty period.
Types of Car Leasing Package
The flexibility in car leasing has also made it a popular alternative to purchasing a vehicle. Between the short term or long term car leasing packages, either can cater to the lessee’s budgets and needs. Short-term packages are ideal for those who want the luxury of a vehicle for a few months. These leases often include higher monthly payments but come with some restrictions such as mileage limit, modifications, maintenance and repair. Long-term leases, on the other hand, are suitable for those who plan on keeping the vehicle for at least two years or more. The lease provides more features and benefits than a short-term package, such as lower rates and unlimited mileage. Additionally, corporate car leasing can be something to look into for businesses requiring multiple vehicles in one package. This lease offers companies access to a fleet of cars at a discounted rate compared to outright buying them or setting up separate contracts with each driver.
Car Leasing vs Buying in Singapore – Things to Consider
For those deciding between buying or leasing a car in Singapore, there are many elements to consider. The cost of owning and running a car in Singapore is no small matter, especially with road taxes, the Certificate of Entitlement (COE), and other associated costs that can pile up very quickly. The lease price covers everything you need, from car maintenance to insurance. In the case you have to send your leased car for maintenance, a replacement car will be offered to you. There’s no down payment required for a short term or long term car lease, thus not affecting their Total Debt Servicing Ratio (TDSR), which can be detrimental otherwise should you be looking to get a bank loan or purchase a home later down the road. Given all the options for new automobiles to rent, you can look for one as recent as 18 months if you prefer a newer car. On the other hand, purchasing a car requires a hefty down payment, roughly ranging from 30% to 40%, depending on the car’s Open Market Value (OMV).
Overall, whether you are leasing a car in Singapore for short term or long term, it can offer several benefits. There are situations where short term car leasing would be a better option for having a vehicle at your disposal, be it for convenience or the liberty to travel around without relying on public transportation. However, if you’re thinking of the overall scheme in the long run, purchasing a car may be more beneficial as the cost of leasing can do significant damage. That said, the decision does rely on the resources you currently have and how much you can sustain the monthly payments of a lease or the sizeable down payment in purchasing a car.
Contact a Car Leasing Company Today
If you’re looking to lease a car or self drive car rental in Singapore, look no further than C&P Rent-A-Car. With various brands, models and variants, you won’t be left lacking in your choices. Choose your dates for pickup and return, a car of your pick, and you’re all set to ride.