Planning to buy that shiny new car to take avdvantage of all these COVID-19 promotion? You might want to reconsider as there are a lot more finicial commitment than just the cost of the car. So what can you do if you want have a shiny new car? Well, you can consider leasing a car instead.
Let’s breakdown all the pros and cons of car leasing vs car ownership
PRO: Less Upfront Cash Payment
Currently, the laws in Singapore limit the maximum amount you can get for a car loan to be 70% of the total price of the car. This mean that you will need to have 20-30 thousands dollar readily avalilable in your bank account before you can even buy a car.
However, for Long Term Car Leasing, the upfront payment is usually only about 1-3 months of the monthly rental. which is usually less than $5,000. So you do not have to pay as much to drive off with that brand new car!
PRO: No Worries About Road Tax, Insurance & Maintainence
Driving without a valid Road Tax or Insurance can land you in a lot of trouble. These ongoing cost are bear by the owner of the vehicle. So if you lease your car, these items are no longer your worries and the rental company will take care of them for you.
PRO: Less Commitment
Once you buy a new car, all your finiances will be locked down by the car for the next 10 years. Regardless rain or shine, you will have to pay for the monthly car loan, carpark and all other ongoing cost. However, this is not the case for Long Term Car Leasing.
Car leasing contract can be as short as 3 months. Meaning much lesser commitment and more flexibilty for you. At any point, if you do not feel like driving, you can easily stop renewing your contract and you no longer have to pay for the car.
PRO: Brand New Car
Once you buy that car, you will be stuck driving the same car for the next 10 years. While if you lease a car, you can have the option to change to another brand new car once your contract is up. This mean that you can always be driving a brand new car every time you renew your contract.
CON: Higher Cost In Long Term
While leasing a car offers many convienences that does not come from car ownership, it is not free. While you pay a smaller cost upfront, your monthly rental is usually much higher compared to the monthly repayment of car loan. In the long run, this cost adds up and you might find yourself paying more for a car that is not yours.
CON: It’s Not Your Car
Accidents happens. That’s why all cars on the road are required to have insurance. When you are caught in a minor accident in your own car, you can always choose to repair the car at a later date at a workshop of your choosing at your own convinence. However, for car leasing, since the car is not yours, you will usually have to report the damage to the rental company immediately after an accident and get it repaired at their workshop as soon as possible.
Long term car leasing has it benefits and flaws, but if you are not planning to drive the car for year, car leasing can be an more affordable and flexible way for you to get onto the roads.
Why not check out our selection of long term cars? From economy hatchback to luxury sedan, we will have the perfect car for you.