22 Sep Is it better to rent or buy a car in Singapore
To buy or rent a car in Singapore has always been a hard decision to make. Even though throughout the years there have been many upgrades down to the public transport system in Singapore, however, nothing can beat having your own personal car and enjoying the convenience that it provides. More and more Singaporeans are considering different alternatives and one of them is to rent a car in Singapore.
Below is a detailed comparison of the three available options (with their pros and cons) to choose from if you are an individual that is concern about having a better quality transport experience.
- Purchasing the car
Buying a vehicle is definitely the most expensive option that you can have. Nonetheless, it offers many benefits.
- Freedom and convenience: owning the car means you can reap its full benefits 24/7 with no restriction whatsoever.
- Resale and scrap value: since it is your car, you can sell it at any point of time; whether the car is still in a roadworthy state, after the COE expiry, or when it’s worn down. Whatever the case, you will have recouped some of the cost previously involved in buying it.
- You need to pay a hefty price upfront: compared to other parts of the world, Singapore comes as one of the most expensive places to buy a car, and with plenty of costly restrictions. The maximum car loan is 7 years; however, the COE system makes things a little lighter by permitting a 30 percent payment of the car’s market price upfront.
- Other expenses that car owners must live with include service and petrol costs, insurance payments, road tax, maintenance, and parking fees. Overall, you would need to be prepared to pay more just to keep your car on the road.
- Renting a car
If you don’t wish to pay a huge amount of money at once in the name of purchasing an expensive car, rentals would be the best option. In simple words, you can enjoy the convenience that a car provides without bearing the full financial weight of it.
- Lesser upfront cost compared to buying: You also would not need to take a loan or have a huge amount of cash to be able to drive a car.
- No payment related to car insurance, servicing, road tax and maintenance, as these things are catered by the rental company.
- You’ll benefit from the convenience of having a private car at your disposal readily
- Lower financial commitment: This is the key advantage that comes with car leasing. You can lease a car when you really require it and return it when you do not require it.
- The monthly outlay might translate to be higher than those of car buyers: Although you will not need a huge down payment to have the car, the cost associated with renting a car could stand as high as $1,400 per month, which is way higher than when one opts for a car loan of $100,000 and then pay that back through monthly installments.
- Uber and GrabCar
Last but not least, one still has the option of engaging in the transport services provided by Uber and GrabCar. They are a convenient and an affordable option of transport for commuters. However, the option is slightly costlier than other taxi rides during peek hours.
Now that you have an in-depth knowledge of what car buying and car rental in Singapore are like, you can make your own decision on choosing one that works best for you.