How popular is car leasing and how is it beneficial?

How popular is car leasing and how is it beneficial?

Car leasing is slowly growing in popularity in Singapore, especially with Certificate of Entitlement (CoE) rates on the rise. These days, it can be more cost-effective to rent a car instead of buying one – as long as you rent responsibly and from the right company. If the cost of car rental is especially important to you, you may wish to look into budget car rental companies to minimise your expenses as much as possible.

Why Choose Car Rental?

Well, for one, you do not have to deal with the rising costs of car ownership. Firstly, CoE prices are getting steeper, sometimes costing even more than the car itself. You also typically do not have to deal with car maintenance and servicing when you rent a car, as the rental company should take care of it themselves.

Car rental also has its advantages when it comes to driving infrequently. If you only need to use a car for a few days per month, it might not make sense to incur the costs of buying a vehicle. Instead, you could look into car rental companies that offer rental rates per day to make driving a vehicle more cost effective for your usage.

In many ways, renting a car is just like having your own private car, just that you only have it for a limited period of time. This may be a benefit to certain lifestyles.

Am I a Good Candidate for Car Rental?

Of course, car leasing is not necessarily for everyone. For instance, if you plan on driving regular road trips to other countries, or if you simply want your own car which you can customise, car rental may not be for you. Some people may also find car leasing strict in the sense that you need to return the car by the stipulated date and time in order to avoid incurring additional costs, and you will need to make sure to refill the petrol tank just before returning the car.

However, you may benefit more from car rental if:

  • You are residing in Singapore for only a few years or less.
  • You do not plan to drive very frequently.
  • You need to drive but are tight on cash.
  • You want a private car without having to deal with the costs of car ownership.
  • You like to try out new vehicle models and don’t want the hassle of having to sell off your old vehicle whenever a newer model comes out.
  • You are not sure if driving in Singapore is for you, and want to try it out with no strings attached.

How do I keep car rental costs economical?

Some people may associate car rental with being pricey and inconvenient. However, this is not always the case. If you find the right budget car rental company, your bill can be kept low while still allowing you to enjoy the luxury of driving a private car.

If you are planning to rent a car, follow these few tips to keep your costs affordable:

  • Book your car in advance, which increases the chances of your desired vehicle being available. Sometimes, car rental companies may charge extra if you rent their last available vehicle of a certain model.
  • Ensure that the rental company has complimentary arrangements for you to pick up and drop off your vehicle. Not all rental companies charge for delivery services, so it’s best if you find one that doesn’t.
  • Return the car on time. Even if you exceed the return time by just a minute, car rental companies may charge for an extra day, week or even a month.

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