Lease to Own (LTO) schemes is slowly gaining popularity in Singapore. But we won’t be surprised if you have not heard of them before. These schemes are not exactly popular among the masses and there are not many companies that offer it.
So, what is so attractive about an LTO scheme and who is it perfect for?
Lease to Own Scheme
A lease to own scheme is exactly what its name suggests. You lease a car for a period of time and then the ownership transfers to you. The leasing period varies from company to company, but it’s usually from 5 to 7 years. LTO schemes usually require a deposit, but there are certain companies that require an outright downpayment.
In many cases, especially in Singapore, lease to own schemes allows you to get a better deal than just buying the car outright. There’s a good chance that it’s cheaper and more worth it for you to lease to own a car. With this scheme, the monthly instalments are usually reduced, which helps drivers cut costs.
And just like a long term lease, lease to own schemes usually cover the common costs of car ownership. These include insurance that covers Singapore and Malaysia, road tax, roadside assistance and maintenance costs. But of course, it varies from company to company.
However, many Singaporeans tend to stray away from this option for a very simple reason. They’d rather own the car outright from the start instead of having to lease it for a couple of years.
The sense of ownership you get when you own a car is an unexplainable feeling and it’s something you won’t feel with this scheme. Well, at least not immediately.
So, who is this scheme perfect for?
Generally, the scheme might be a good option for anyone who needs a more permanent vehicle solution. You get to “own” a brand new car at a “somewhat” cheaper rate. But of course, committing to a long term lease might be scary for the average Singaporean. What if something happens and you need to free up some cash? Or if your needs change and you need a bigger car? And the list goes on.
Committing to a long term contract might be scary and not a very smart thing to do. So, lease to own schemes is only beneficial if you can guarantee that you’ll need to use the car for the foreseeable future.
Private hire drivers
As a private hire driver, you rely on your car for your livelihood. So you are in it for the long run and you can make such a commitment. Furthermore, if you are already renting a car, switching to owning one would be beneficial to you.
When you switch from renting to owning a car, you’ll be able to earn more and save more every month. You won’t have to worry about eating into your savings to cover your high rental costs because whatever you earn will be yours to keep.
Lease to own schemes looks to be the best option for private hire drivers and a program that should be considered seriously!
Singapore’s Shortest Lease to Own Scheme
Are you a private hire driver looking to switch from renting a car to owning one? Look no further! With Singapore’s Only 1-year Lease to Own scheme, you’ll be saving at least $900 more on your rental each month.
Here’s how it works:
- Rent a car with us to drive for Grab/Gojek at a normal rate of $65 – $100/day (depending on the car) for the 1st year.
- From the 2nd year onwards, the ownership will be transferred to you and you will enjoy a rate of just $31 – $40/day.
Why Rent from Carro?
- Receive $3,650 cash rebate after first-year completion
- Shortest Lease to Own scheme in Singapore (1 year)
- A wide selection of Hybrid cars
- Freedom to choose the colour of your liking
- Earn more for yourself when you pay less with Carro
Learn more about our scheme and check out what other drivers think of it here:
Call us at 96433364 (Amin) or 92471839 (Melody) for more information.