It can be tempting to want to have your very own private car in Singapore. Imagine being able to avoid all the crowds during peak hours on public transportation! However, some people may be hesitant to buy their own car due to the Certificate of Entitlement (CoE) system, which makes it expensive to own a car in Singapore. Fortunately, buying a car is not the only way to gain access to a private vehicle. Through car rental or car leasing services, you can easily gain the benefits of commuting by car without the worry of having to take out loans to pay for a new vehicle.
Buying a Car
Purchasing your own car is undoubtedly the most expensive option, but one that many people will find the most convenient.
Pros:
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Resell or Scrap Value
You can resell your car at any time to offset some of the purchase price if you find it too hefty a sum. Once your CoE has expired, you also have the option to scrap your car to get back a fraction of the purchase cost.
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Convenience
Unless you buy a weekend car, you’ll be able to use your car anytime 24/7, making it extremely convenient to drive wherever you need to be, whenever you want to.
Cons:
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Upfront Price
The upfront cost of purchasing a car can include many other costs largely due to the CoE system. If a vehicle has an open market value of more than $20,000, at least 30% of that price must be paid upfront. Additionally, the maximum car loan tenure is capped at 7 years, and can be inclusive of interest.
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Maintenance Price
The cost of maintaining a car in Singapore is not cheap, considering regular petrol, servicing, road tax, car insurance and parking fees. These costs can rack up to around thousands of dollars for just a year.
Renting a Car
If you do not wish to pay the considerable price of owning a car, you could consider renting one instead. Although car rental singapore is not so cheap either, it is definitely a step down from the heavy financial commitment of owning a vehicle.
Pros:
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Lower Costs Compared to Buying
Without having to worry about CoE prices, maintenance or car insurance, you can definitely save some money when you rent a car instead. However, it is worth noting that if you plan to rent very frequently or for a long period of time, these costs can quickly add up, especially since you cannot recover any of the money by selling or scrapping the vehicle.
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Less Commitment
One major advantage of renting a car is that if you will not be needing it for a period of time, such as if you are going on holiday, you can simply return the car. Alternatively, if you only need a car infrequently, you can rent it just on those certain days.
Cons:
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High Monthly Costs
With the monthly costs of renting a car possibly going as high as over a thousand dollars, this price can be dangerously close to the amount you would have to pay as instalments when buying a car.
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Petrol and Parking Costs
When renting a car, the petrol, parking and Electronic Road Pricing charges will likely be yours to fork out, which can amount to over $500 per month.
Car Sharing
A cheaper alternative to buying or renting a car is to hire one with services such as Grab.
Pros:
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Cheaper
Although Grab services are usually more expensive than a taxi, the prices can be cheaper during times such as after midnight. You also won’t have to worry about paying additional charges for the petrol, parking, insurance or other maintenance costs.
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Convenient
Grab cars are generally more available than taxis and it is extremely convenient to launch the Grab app on your phone and book a car.
Cons:
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Being a Passenger
When commuting via Grab, you don’t get to drive the car, which can be a deal breaker for some. However, for the average commuter, this is likely not an issue. In fact, most commuters tend to find it more relaxing to be chauffeured by a Grab driver.
