Updated: Sep 8
Wanna buy a car in Singapore but don’t know whether to choose to buy a car or lease a car? This is the article for you.
Buying a car is straightforward, but what’s car leasing, you may wonder. Car leasing is basically an agreement to rent a car for a fixed period of time, usually for long periods of months to years. So, why not just take out a loan and buy a car, instead of renting a car for years. Definitely, there are pros and cons to both sides, and in this article, we will dive in thoroughly to discuss both.
Without a doubt, buying a car in Singapore is expensive. Almost all the time, you’ll have to take out a loan to pay for the car, furthermore, you’ll have to pay a large sum of 30-40% down payment that can easily translate to a few thousands to up to even $30,000 upfront cost.
However, for car leasing, there will definitely be a less initial payment, since you’re just renting the car, right? Still, in the long term, car leasing actually costs more, through a progressive monthly recurring cost.
Buying a car itself may cost more in the beginning but in the grand scheme of things, it might actually save you money as compared to car leasing.
Selection of Cars
Without a huge initial payment, the range of cars available will be limited. This is where car leasing may be better for you! Authorised dealers of luxury brands like Mercedes-Benz, Audi and BMW all offer car leasing options for customers. When you lease a car, the cost is distributed throughout the course of the contract, and luxury cars are not out-of-reach completely.
If you’re looking to drive a luxury car, without a huge down payment, car leasing might be just the perfect option for you!
Duration of Commitment
Do you get sick of driving the same car only after a few years? Do you feel like changing cars every few years? If you buy a car, changing it can be an annoying task. First you have to see if you could perhaps trade in your current car for a new car, or sell to a dealership for less than your car’s market value or find a direct buyer either by yourself or through a consignment agent.
This is where car leasing is advantageous, as suggested above, car leasing means renting a car for a fixed period of time usually in years. This means that you can easily change your ride every few years. All you need to do is to lease another car after your car leasing contract ends.
Car Maintenance and Running Cost
When it comes to owning a car, a lot of costs will be incurred in the process, petrol, parking, ERP, maintenance, just to name a few. By buying a car, you’ll become responsible for the costs incurred, as you should, however some costs may still be covered under agent warranty depending on the unit and contract. Do make sure to read up on your contract to know what’s covered under your agent warranty if there’s any. However, this will be a different case if you lease your car. Most leasing companies will be responsible for the maintenance, wear and tear items replacement and general repairs.
Afterall, if you buy your own car, you will have to take good care of it or the consequences will come to you years down the road. However, it might be a different case when you’re leasing a car instead. Truth be told, you don’t own the car, right? However, these costs vary from car to car, from contract to contract, and every person sees the pros and cons differently.
To buy or to lease? It’s not an easy decision to make, but hopefully this article helps you in understanding the pros and cons of both ways. Good Luck!