The choice between long-term car rental and car buying in Singapore is rather complicated, combining financial considerations and several practical ones concerning maintenance, flexibility and lifestyle. While car ownership is associated with long-term investment and commitment, the long-term car rental trend has gained strong momentum in Singapore for its convenience and affordability. Let us guide you towards making a well-informed decision!
The Financial Aspect: Renting vs. Owning
Owning a car in Singapore is expensive since the front-end costs include the Certificate of Entitlement (COE), road tax, insurance, and depreciation. High initial costs may not seem sensible for a few and make it a wrong investment if they require it for some time or prefer not to incur expensive front-end outgoings. For others, there is long-term value and a chance to resell the vehicle after some time.
Long-term car leasing in Singapore is a much more flexible financial solution. Whereby in car leasing in Singapore, you only pay a fixed monthly fee that would cover the cost of the car, insurance, maintenance, and taxes. It helps since you do not have to be burdened with surprise costs. There are also leasing arrangements, such as a lease to own cars where you take up the car on lease for a specific period, after which you can buy the car.
With cash flow, the long-term car rental in Singapore would be less difficult to handle, since there are no unbudgeted expenses or depreciation. The monthly lease is most likely to be lower compared to what you could have paid for financing instalments. This would be manageable for most people or companies because of cheaper rent prices.
Flexibility and Commitment
Of course, a huge attraction to long-term car leasing in Singapore is the freedom one gets to enjoy. Whether it’s a year or several years in need of having a car, leasing provides an easy way out without a mandatory purchase decision of an automobile. If your needs change, return the car for the remaining period or leave for a different model.
READ MORE: 5 Benefits of Car Leasing in Singapore
However, you become locked into using the car as long as it remains in your ownership. In Singapore, selling a car is a long process; there’s no guarantee you’ll get the costs you put into a car back. People who enjoy upgrading to new models without the inconvenience of selling them may like long-term car rentals.
Another advantage of the lease to own cars is that you may buy them in their entirety after passing a certain time. It will make it look like you can have more flexibility since you don’t have to buy in time, though you can buy some other time. The flexibility of the lease may be on your side if you are an expatriate, a business person who travels far and near, or a business whose car needs to shift very frequently.
Minimal Maintenance and Hassle-Free Usage
Maintaining a car in Singapore is time-consuming and expensive. As a car owner, you are responsible for servicing, repairing, and even fixing the car-including its breakdowns. While drivers enjoy the hands-on approach of car ownership, most want their cars to be hassle-free.
Generally, long-term car leasing in Singapore covers all maintenance services so that you do not have to bother about repairs, servicing, or even replacing worn-out tyres. Long-term car rental in Singapore can benefit those who want convenience in driving but leave other concerns for the car’s upkeep to these companies. Long-term car rental in Singapore takes care of logistics and ensures that it stays in the best condition over the lease period.
This is because, as stated, this hands-off approach is attractive in a fast-paced city like Singapore where time equals money. Long-term car leasing gives you the comfort and benefit of driving without the pains and headaches associated with car ownership.
However, long-term car rental and pure car purchasing depend on your personal needs, financial status, and lifestyle. If you like flexibility, convenience, and a predictable monthly expense, long-term car leasing in Singapore suits you best. But if owning a car means having utter control over it and giving it a good long-term investment, then perhaps you should get a car instead.
With the route you take, you should most likely weigh the pros and cons. Long-term car rental will free you from maintenance troubles and financial shocks, while purchasing gives you control over the long term, and it may give you extra money when you are done selling it.
Want to know more about long-term car leasing? Contact Sime Darby Services today to discover the ultimate flexible leasing plans that fit your lifestyle perfectly!
