26 Dec Benefits of leasing and why you should consider it
Singapore – a beautiful city buzzing with activities everywhere. Explosive population growth and land scarcity have made owning a car in Singapore very expensive. Today, we will be exploring the benefits for relying on car rental in Singapore and look at ways it can be used favorably by prospective car owners.
Lower up-front expenses
When you buy a vehicle, you will have to pay 20% to 30% cash deposit for the vehicle. That is at least $150,000 even if you are purchasing the cheapest vehicle in the market. For car leasing, drivers would only need to fork out one to three months worth of rental up-front. That will work out to about $5,000 to $10,000, which is definitely a much smaller financial commitment.
Maintenance and Servicing
All maintenance cost is borne by the vehicle owner throughout the lifetime of the vehicle. That means that there will be additional expenses on top of the vehicle’s running cost and loan repayment. On the other hand, car leasing gets rid of these additional costs because the car leasing company will provide servicing for the vehicle.
Insurance and other miscellaneous fees
Car insurance is typically in the range of $1000 to $2000. On top of that, car owners will also need to pay for Annual Road Tax among other miscellaneous fees. These fees add up to a few thousand dollars a month. Leasing a vehicle will eliminate these costs as everything is borne by the leasing company. However, do take note that the insurance excess is much higher for leased vehicle.
Car owners will have to worry about regular maintenances and sourcing for a good servicing workshop. On top of that, owners will have to sort out the car insurance and other registration fees before they can hit the road. All this will lead to a very troublesome and long process. For car leasing, it is as simple as choosing your dream vehicle before committing to it by paying a one to three month deposit. Following that, drivers will only need to ensure timely payment every month and not worry about anything else.
As you can see, there are indeed many advantages to lease a car. In fact, car leasing is so attractive that many businesses are turning to commercial car leasing for their transportation needs.