Do you know that you can rent a car before you buy it?
With so many cars makes and models available, it is understandable that you might need to test drive some of them to find the best match for you. Buying a car is a decision that can have a significant impact on your financial future we want to take an in-depth look at the benefits and challenges of car leasing to help you make the right choice. Owning a car in Singapore is like being given the keys to a Ferrari and then being asked what you will do with it. There are many other things that can be used for, not just the conventional reason of using it as your primary source of transportation from point A to point B whether for work or for leisure. And with the recent changes in legislation and policy reform, either renting or borrowing vehicles is an option Singaporeans can explore instead of having to shell out high costs on purchasing a vehicle that will only see action on rare occasions when you want to escape the city streets for a day dune-bashing at Sungei Buloh or some other outdoor adventure.
Yes, cars are an expensive luxury in Singapore and not a necessity. But owning a home and car is no less than an accomplishment as well. From the sense of pride you feel when you own your first home to the joy that driving your favorite car can give you on any given day, these dreams are very much worth achieving.
The joys of vehicle ownership
For some people, buying a new car is the perfect way to be able to get around freely with family members, such as elderly parents who may have mobility issues or young children. If you work in an area which has limited public transport facilities, then forking out for a new set of wheels can be advantageous and much more convenient when it comes down to not having to travel every day or move from your usual local areas up and down.
In some cases, owning a car can be more of a necessity rather than just for fun. If you have a working career that requires you to travel all over Singapore for your daily appointments (for example, insurance agents or real estate agents) or something like having sales jobs where one usually visits clients around the city, not having your own personal transport can make your working day very annoying and inefficient. In these cases, owning a car is truly a need rather than just a want.
In contrast to public transport, private cars do not have to be used as appropriate means of transportation. Dragging these cars all over the town makes it particularly hard to book appointments and make deadlines on time. In addition, salesmen can turn a car into an exclusive brand nowadays, and giving these commodities to clients as a giveaway during special occasions is always effective.
While owning a car in Singapore may come with significant benefits, there are many challenges that come along with it. Whether you are buying your first car or upgrading your current ride, we hope that the information we provide will help you better understand the financial needs and responsibilities that come along with owning a vehicle in Singapore like expenses for insurance, maintenance, services, and security regularly. It is also essential to be acquainted with ongoing costs like fuel, yearly road tax, ERPs, maintenance parking fees, insurance service costs, and insurance costs before going ahead and making this commitment. These requirements are set to discourage people from buying new vehicles as part of Singapore’s bid to reduce the number of vehicles on our roads as well as reduce our carbon footprint.
It is important to note that the car’s sticker price does not take into account any of the other expenses involved in buying a vehicle. For example, Certificate of Entitlement or COE costs is dictated by the number of years you have to own a vehicle before it expires. And Vehicle Emissions Scheme (VES) rebates are a way for the government to incentivize certain health-conscious consumers on their purchasing decisions when it comes to new cars. Make sure you factor in both these additional costs into your budget when considering getting a car loan.
Let’s take a look at renting a car instead
Although renting a car comes with a few minor inconveniences, such as having to pick up the car from an out-of-the-way branch (Forward offers car delivery to your home), not being able to drive home in the car you have booked, and losing out on the flexibility of driving wherever you like; it does have its advantages. One major advantage of car rentals is that reputable companies do not require any sort of deposit upfront. This is a huge benefit as typically when buying a car, clients often need to arrange an additional loan from their bank or other financial institution, which might include interest expenses.
As opposed to buying a car, renting a car can also be an attractive option because it will not have any negative impact on your Total Debt Servicing Ratio. As such, you could instead use the money you save to finance other things which might be of more help or value to you like financing home loans. Rental car companies tend to take care of their customers better – there should be no hidden fees or hidden add-ons like insurance policies or service contracts – You won’t be caught in a situation where you end up asking yourself “I don’t know what happened but I got a bill for $10k/year when I signed up for this lease!”
Renting a car doesn’t just cut costs and eliminate the need to maintain your vehicle, it also means you have a wide variety of models at your fingertips, right at the time you need them most. If you’re stuck for a family pick-up with the onset of guests, instead of waiting for the repair shop to get your larger SUV fixed or the dealer to find a minivan on the lot, you can just pick up an 8-seater before everyone shows up.
Difference between car renting and car leasing
With the rise of car leasing companies in Singapore, it’s easy to assume that “lease” is synonymous with “rent.” But just because the words are the same, it does not mean that everything about a lease is exactly the same as what you pay for a rental. A lease is different from an outright sale and rental agreements come with certain conditions (like warranties or guarantees) that make them more expensive than buying than an outright sale. The numbers could vary according to your budget and preferences, but generally speaking, each type has different advantages and disadvantages.
While both car rental companies and car leasing firms appeal to different demographics, they also have a number of standout advantages. Renting a car is straightforward: you can drive it for as long as you need it without needing to enter into any long-term commitments or put down large sums of money upfront – perfect if you’re in the market for something temporary and need assurance that using the vehicle won’t break the bank! Car leasing however is extremely flexible; although most vehicles are leased on short-duration plans, some can be leased over an extended period – absolutely ideal if you’re looking to build on your fleet of cars within a shorter space of time and don’t want to have to make payments more often than once every twelve months!
A car lease is a more viable option for those who need to commit for an extended period of time, like professionals or business owners who require cars due to their jobs but do not want to necessarily commit to driving their own cars. Common types of car leases are private hire vehicles (PAV), like our Grab and GoJeks, and delivery vehicles such as Lalamove.
There is no right or wrong answer here. For example, if your daily routine includes driving a lot then you may find that renting a car will be cheaper, but owning and driving your own car will normally be better for your budget in the long run. Also, there are some great online resources to help with this decision – research and learn more about it so you can make the best decision based on the details of your story. The cost of a car can be something that is confusing to a lot of people. There are so many things that go into the price of a car, it’s no wonder that so many people are confused. We hope this article has helped you in some way to understand a little more about cars and their prices. If you want to learn more about other topics, make sure to check out our blog where we have plenty of articles on car ownership in Singapore.