What are the common preconceptions about car leasing in Singapore?

What are the common preconceptions about car leasing in Singapore?

For decades, buying a car has been one of the only reliable ways to get a running vehicle. However, the recent surge in car leasing has opened more opportunities for drivers to get access to a long-term vehicle without the hassle of car ownership. With both car ownership and car rental available as competitive options, you may be wondering which is best. Well, look no further as we clear up some of the most common preconceptions about car leasing in this article. 

Car Leasing is Expensive

These days, you can easily rent a car at much a lower cost than if you were to buy one. Car ownership can seem appealing for your wallet especially with all the great deals companies are throwing out. However, the catch is that those prices usually don’t include all the other costs of car ownership, such as maintenance fees, insurance, taxes, repair works, interest on loans, depreciation and most of all, the Certificate of Entitlement. If you lease a car, you don’t have to deal with these pesky fees as your rental company will take care of them for you, usually at a low fixed rate. 

Car Leasing is Unpredictable

Contrary to popular belief, you are not going to rack up thousands of overnight costs on your car rental. In fact, car rental makes it easy to calculate the prices you’ll pay, since you can always plan for a contract duration that suits your current budget. Furthermore, the operating costs are at a flat fixed rate, meaning that you’ll never be shocked at unexpected costs coming in the bill. 

Car Leasing is Complex

For someone new to the world of car leasing, it can seem like a daunting procedure, but car leasing is really a piece of cake once you get into it. One of the benefits of car rental is that the rental company takes care of all the administrative work for you. On top of that, they also provide driver services and support to get you on the road as fast as possible. 

Car Leasing is Inflexible

You may think that you’re stuck with the vehicle once it’s leased, but car rental companies are offering new options such as short-term leasing which allows you to try out a vehicle before really committing to it for the long-term. 

Car Leasing is Risky

All costs considered, car leasing can even be cheaper than car rental and certainly has reduced risks in terms of asset value. As long as you do some research and calculate the costs of leasing the vehicle you’re after, car rental can be very cost-effective. 

Car Leasing Isn’t for Me

Sometimes, what bars people from renting their dream car is the notion that only large companies should lease cars. There is nothing further from the truth – anyone can lease a car in any season of their lives. While it is true that car rental companies do cater to large multinational companies, they also offer plans for individuals and small businesses. 

Car Leasing Doesn’t Let Me Own the Car

Technically, yes, you don’t own a rented car – which can be a good thing since you also don’t have to pay for the insurance, maintenance or repairs either. At the end of your lease, if you decide that you’d like to keep the car, some rental companies will allow you to buy it off them for a cheap price.  

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