Leasing or renting: Which is the way to go in Singapore?

With the costs of owning a car in Singapore being as high as they are, it makes little financial sense to buy a car if you're not going you use it every day. Thankfully those that only have an occasional need for a car now have plenty of options to choose from.

Want to know the differences between the options available? Read on to find out!

 

Renting The most traditional option for short-term motoring, renting remains the ideal option for those looking for a car just for the weekend or a short blast into Malaysia.

 

If you only need a car on rare occasions, renting would be your best option as it allows you to get behind the wheel car while only paying for the selected few days that you actually use the car.

 

Looking for a car rental in Singapore? Popular local rental firm Hertz offers the Ford Focus at just $105 for a single-day rental, while Sixt offers the Honda Fit from $129, although their per-day prices do drop if you rent for a longer period.

 

Additionally, there are many authorised dealers that also rent out cars. If you're looking to rent a car from a specific marque, there could be no easier option. Find out more here!

Renting may cost more per day than the next option available below, but the upshot is that you get away from all the maintenance work necessary for the car. Renting also means that you will not have to waste time cleaning up the car, as long as it is returned in a reasonable condition of course.

 

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You will, however, need to pay for the fuel you use, so make sure you make a detour to the pumps before you return the car, as some places will add a fuel surcharge if the car is returned with less fuel than when collected.

Typical rental businesses also operate out of a brick-and-mortar shop, so you will need to arrange for transportation to and from their store when collecting and returning the car. However, for an additional fee, some rental firms will offer an additional pick-up and return service.

If however, you're looking for a car to drive for a few hours instead of a few days at a time, there's also the option of car sharing! Be sure to check out our article on the latest car sharing rates here!

Leasing

If, however, you are looking to keep a car for one or two years at a time, it will be far more cost-efficient to look at leasing a car instead.

The main advantage of leasing against the more traditional rental is that your per-day prices are brought right down. With the prices you get for renting a car above, keeping a car for a month will easily work up to $3,000 and above. However, it is possible to keep your costs down by opting to lease instead.

CL Leasing, for example, offers the previous generation Toyota Vios at a rate of $1,400 a month for a one-year lease, while the Honda Vezel can be had for $1,700 a month for a one-year lease as well.

You can, however, also get behind the wheel of more expensive machines such as the Toyota Alphard from $2,800 a month, or drive a Mercedes-Benz GLC from $4,500 a month, if you're willing to grab a two-year lease.

Leasing allows you to keep the car over a far longer period, while still enjoying some of the benefits of renting. This means that you will not need to source for your own insurance, or schedule vehicle servicing nor arrange for disposal of the vehicle.

CL Leasing also offers customers that lease its cars access to a 24-hour emergency rescue and towing service, should their vehicles breakdown on the road.

Most leasing firms will arrange for the collection and return of the vehicle when it needs servicing or repairs, so your hassle is kept to a minimum, but you still will need to be physically present to hand over the car.

Furthermore, since you are owning the car over an extended period, you still need to arrange for long-term parking and clean up the vehicle yourself.

This article was first published in sgCarMart.