OK, we all know how expensive buying a car in Singapore is. However, we are not the only ones. Some car companies are offering leasing as an option for the Singaporean market and this makes it more than worth looking into.
Let’s see what leasing is first
There are two types of leasing in Singapore. The first one should be familiar to everyone by now. It’s like a prolonged car renting. There are several options, but generally speaking, it is well-known and pretty straightforward.
The other type is what I mentioned in the intro – leasing from a car company. How good an idea this is we can see from the fact that the likes of Porsche, Daimler, BMW and VW are jumping on the bandwagon.
There are also a few options here. For example, some companies ask for an initial payment which is noticeably lower than the down payment required for buying a car and then a monthly fee. After your period is over, you can simply return the car.
Other companies offer a buyback setup. This means that after a while they will buy the car back at a lower price.
Some others opt for very low monthly fees (when compared to the competitors), but ask for a pretty large down payment.
Most companies offer leasing that lasts between three and eight years and they pay for the road tax and insurance. However, this is not always the case, so make sure you ask before you opt for a certain company.
The monthly fees also vary. A mid-range car can be yours for under $2,000 a month, while a higher class car can cost you more than $3,000 a month.
Generally speaking, leasing options vary significantly. If you opt for leasing, you should really ask around before you choose the company.
But is it worth it?
There’s no definite verdict on that just now. Industry standards regarding pricing are emerging but they can hardly be called clear at the moment. Also, battling for market keeps reducing prices and introducing new down payment options.
However, there are people who will find leasing a much better option.
The most obvious group would be the people who need a car but can’t afford the down payment. Leasing makes the car more affordable initially and this is a huge plus for anyone in hurry to get behind the wheel.
The second group of people is the ones who are in Singapore only temporarily. Why buy a car at Singapore’s wild prices, when you can lease it for a few years and practically spend a lot less money before you leave Singapore. This can last several years, so this group is the one which will definitely benefit from leasing.
Many of the people in this group make a mistake of renting a car. Generally speaking, leasing is cheaper than renting, so make sure you calculate how long you are staying and see if leasing is a more cost-efficient option.
This option would also be great for anyone who is thinking of retiring their driving status. Basically, if you are planning to not drive in Singapore within a few years’ time for any reason, leasing is the best option.
The FUN group! If you want to buy a luxury or sports car, leasing could be the best option. Sure it will cost you more a month than a mid-range city car, but if this is your primary concern, you shouldn’t be looking for a sports car in the first place. Leasing makes it possible for far more people to drive a high end car – the people who could only dream of these before leasing became an option.