Transportation is very important in day to day life. Many people invest in cars for personal service, while others use them in business, especially in logistics and employee’s fleet service.
Yet, it is undeniable that purchasing a car in Singapore is not that relatively cheap. People may opt for a cost-effective alternative, like efficient public transport. Others who want to achieve a fast and comfortable mode of transport choose street-hailed taxis or smartphone-based taxi booking services.
But one of the nearest yet cheapest substitute for a privately-owned vehicle is long term car rental services. Car leasing in Singapore has been around in the country for quite some time. From short-term uses like a quick weekend getaway vacation to yearlong private hire car rental contract, car leasing services have saved many people with a tight budget. This article will help you weigh whether car leasing is better than purchasing your own car.
Long Term Car Rental or Buying Your Own Car: Which Is Better?
People who want to purchase a vehicle orlease a car in Singapore need to identify both choices’ fair share of advantages and disadvantages to weigh which option is better.
Several factors drive the price of a brand new car and lease car service in Singapore.
Upfront, purchasing a brand new car is much more expensive in the sense that it is a one-off payment. The weight of this financial arrangement can be a burden for the buyer, especially if they are tight on the budget. One-off payment can deplete the savings of the buyer.
Another factor to consider is the maintenance of the car. Careful drivers who use brand new vehicles infrequently are more likely to spend less on maintenance than those drivers with a battered automobile.
On the flip side, car leasing in Singapore requires a fortnightly or monthly payment for the vehicle, which is more affordable. The monthly cost depends on the length of the contract and the brand of the automobile. Some private hire car rental services require their customer to deposit down payments.
Apart from the maintenance cost, people who opt for a car lease should watch out for additional fees, like penalties for damages, delayed payment, and exceeding mileage limits. Drivers who want to purchase their rented car may also need to shoulder extra charges.
When it comes to car selection, long term car rental in Singapore gains the upper hand.
One of the factors that affect the cost of the car for one-off payment is the model and brand of the vehicle. Generally, luxurious brands and newer models are significantly expensive. It limits the car selection of buyers with a limited budget. Buyers can still opt for a second-hand car, yet the price may still be higher than a private car rental in Singapore.
On the other hand, car leasing services in Singapore allow drivers to drive newer car models at an affordable monthly rent. The rate for the rent depends on the length of the contract and the model of the vehicle.
At the same time, people who choose to lease a car in Singapore have the choice to upgrade or change vehicle models once they enter a new private hire car rental contract in Singapore.
Independence and Freedom
Unfortunately, for people who love long drives and road trips, car leasing may not be the best long term choice.
In reality, owning a car provides drivers and families independence and freedom when travelling to different places. The only thing drivers need to worry about is the petrol.
It is much more comfortable than public transport as well, especially if you are travelling in large groups.
Although drivers who opt for a long term private hire car in Singapore have the freedom to drive a vehicle on the road without actually owning it, they are bound by the mileage limit and other usage restrictions by the car leasing services in Singapore.
From a long-term perspective, these restrictions somehow affect the independence and freedom of the driver.
On the flip side, short-term private hire car contracts in Singapore are much suitable for quick weekend getaways; however, they can be more expensive in the long run.
Investment and Possibility of Making Money
Vehicles are a form of investment. The downside of purchasing a car is its depreciation rate. Apparently, a brand new vehicle reduces its value by 40% to 50% after three to five years.
It can be a problem for car owners who choose to buy a brand new automobile. However, privately owned vehicles have more opportunity and possibility of making money than those who opt to lease a car in Singapore.
Car owners have the freedom to sell their vehicles at a lower price. They can also subscribe their automobiles for private hire car rental in Singapore. They can also use it for smartphone-based taxi booking services.
As long as the driver can provide the right documents and car ownership and adhere to the government laws concerning transport services, the possibility of making money out of owning a car is greater than those who lease a car in Singapore.
Investment in a car is a double-edged sword for those who choose long term car rental. Firstly, they don’t have to worry about the depreciation rate of the vehicle.
Secondly, they don’t shoulder the responsibility of selling the car to get rid of it or buy a new one.
However, they don’t have the independence of making money out of it as car leasing in Singapore is strictly for personal use only.
Purchasing a car is a one time process. The process is much easier than renting. Apart from the purchasing process, car owners shoulder the task of transferring ownership and other legal processes when they decide to sell the vehicle.
Drivers who choose long term car rental services in Singapore have to undergo the leasing process annually for new contracts. Approval of the application may take a long time as well. Termination of contracts is costly and complicated for drivers, too.
Long term car rental in Singapore has its advantages and disadvantages over buying a car. Weigh the pros and cons carefully before deciding which option to choose.
At ComfortDelGro Rent-A-Car, you can get affordable long-term and short-term car rental services. Visit ComfortDelGro Rent-A-Car today.