Between buying a new car or leasing one until you own it, which is the better option when it comes to owning vehicles in Singapore?
Singapore has notoriously stringent rules on car ownership, with fees and directives that can be cumbersome. The last thing you want is to add financing your car to that equation. Private hire driving has made cars a worthy investment for income -- the only question is, which one is a better deal? Buying a brand new car outright or a lease-to-own package?
Buying Vs. Leasing: The Difference
The biggest hindrance to owning a car, even if you’re using it for extra income, is the difficulty of shouldering the upfront costs. Leased vehicles have less deposit requirements than buying brand new, both the initial cost of the vehicle but also the required fees to register it. However, it doesn’t necessarily mean that leased cars are cheaper: with monthly fees in lump sum form, you might even have to shell out more for leased vehicles in the long run. While brand new cars require a larger upfront deposit, the beauty of leased vehicles comes in that the fees are staggered into monthly payments, which makes them a popular option for private hire drivers looking to start earning income without an initial investment.
Buying also puts you in the position of having to manage the insurance and maintenance costs of owning a car yourself. For many leasing deals, the convenience of not having to worry about insurance coverage and road tax computations is included in the lump sum you have to pay monthly.
More Than Costs
But beyond the cost, there are other factors to consider. Leasing to own takes years or however long your lease is before the car is actually in your name, as opposed to buying a new one where ownership is automatically yours. Leasing also puts you in a position where you have to see the contract through, with a longer commitment than if you owned the car; if you own the car, you have the option to sell it should you decide that you don’t need it anymore. Terminating a lease means losing all the investment you’ve sunk in it, while selling an owned car lets you recoup some of your capital.
Another factor to consider is customisation. When you lease a car, you’re unable to make any modifications until you own the vehicle. If you plan to paint your car or install special parts, you might be better off with a vehicle you can actually call your own.
When it comes to leasing a vehicle for private hire, MS Carz Leasing has the best deal for you. As an official Grab rental partner, we offer fuel-efficient and comfortable hybrid vehicles with great incentives and weekly rebates. We also make sure that from paperwork to the road, your driving experience is seamless: we take care of all administrative processes, including comprehensive insurance coverage, road tax computations, and full maintenance and servicing. The best part? You can opt for a 5- or 7-year plan and fully own the vehicle at the end of the plan.
Drop us a message at <a href="http://wa.me/6588832909"> here</a>or call us at +65 8883 2909 to find out more.