• Home
  • Contact Us
iBusiness Angel
No Result
View All Result
Thursday, February 2, 2023
  • Home
  • Finance
  • Accounting
  • Sales
  • Business
  • Marketing
  • Home
  • Finance
  • Accounting
  • Sales
  • Business
  • Marketing
No Result
View All Result
No Result
View All Result
Home Auto

Car Financing VS Car Leasing In Singapore | Which Is Better

by Paul watson
November 19, 2021
in Auto
0
Car Financing VS Car Leasing In Singapore | Which Is Better
155
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

 

Everyone has their dream cars. Some wish for luxury cars like Rolls-Royce Dawn; others prefer vintage ones like a Volkswagen Beetle. Practical people would want simpler yet useful automobiles like a van. But the point is people dream of driving a car someday.

Fortunately, this dream is fairly attainable. You can purchase a brand new or used one, enter car financing or a long term car rental.

Realistically speaking, not everyone can afford the upfront price of brand new and used car sales. Their last resorts are car financing and car leasing in Singapore. These two have flexible financial arrangements. But, which one is the best for you? Continue reading this article to find out.

Car Financing VS Car Leasing In Singapore: Which Arrangement Is The Best For You?

One of the distinct similarities between financing a vehicle and trying a private hire car rentalis its flexible financial arrangements. Yet, there are still other significant factors to consider before entering either of the deals. This part will help enumerate the similarities and differences of car financing and car rental in Singapore based on several significant factors. It is up to you to weigh their advantages and disadvantages.

PAYMENT TERMS

Payment terms are the common ground of car finance and a rental car in Singapore.

Car financing

Car financing requires a down payment for the vehicle. Generally, the downpayment may include registration fees, taxes, and other service fees. Your car dealer and financial institutions may offer you financial arrangements. If you ever choose banks to finance your vehicle, you can use two loans: a personal loan and a car loan.

A personal loan is a sum of money lent to you to use for different reasons, such as hospitalisation, vacation, and purchasing a car.

A car loan is solely for purchasing or supporting car finance alone.

Depending on the financial arrangement you agreed on, the payment terms can last from months up to several years.

Monthly payment is much higher for car financing than leasing a private hire car rental because you are paying for the whole value of the vehicle.

Car leasing

Similar to vehicle financing, you need a down payment when you rent a car in Singapore. Down payment may also include the first month’s payment, taxes, registration fees, and other service charges.

When you lease a car in Singapore, you can cover its monthly payment using a part of your monthly income and personal loans from financial institutions like banks and money lenders. However, car loans may not support a short term and long term car rental.

Car leasing in Singapore has a bit of an advantage when it comes to payment arrangements. Depending on the contract, the driver can use the car for 90 days up to years. Monthly payment is much lower than car financing. The driver pays for the time they are using the car rather than the entire value of the vehicle.

MAINTENANCE

Car financing

Generally, the driver shoulders the repair and maintenance of the vehicle. It breaks even with the wear and tear fees for car leasing in Singapore. It is the discretion of the driver whether or not to have it repaired for minor damages. However, drivers must also remember that the car’s condition affects its value. Poor car upkeep significantly decreases its value.

Car leasing

Your car dealer shoulders the maintenance of the vehicle before handing it to you. However, this setting changes depending on the agreement. When you rent a car for a short period, which typically lasts up to 90 days, the car dealer shoulders the maintenance.

For long term car rental that usually lasts up to two years, the driver may take care of the regular car upkeep, depending on what has been agreed upon in the contract.

The agreement may also state extra charges for any minor and major damage the car has obtained within the care of the driver. 

One-of-the-ways-to-avoid-maintenance-fees-is-to-drive-safely-and-be-aware-of-your-surroundings-If-yo

LIMITATIONS AND FREEDOM

Car financing

The driver owns the vehicle in car financing. It means that there are no restrictions on how they want to use the car.

They can customise their vehicles freely. It can undergo repainting, add and remove accessories, and replace other parts.

There is also no mileage limitation. It means that the driver distances wherever and whenever they want.

Car leasing

The driver ina car rental has their hands tied when it comes to customisation. Some dealers approved customisation. In return, the driver will shoulder the fees for the car damages alterations have caused.

Some dealers are stricter when it comes to customisation. They may not allow any alteration of the vehicle, whether or not it is a long term car rental contract.

Car leasing also implements mileage limitations. The driver has to pay charges if they ever exceed the mileage limit.

END OF TERM AND EARLY TERMINATION

Car financing

When the payment term is complete, the driver now owns the car.

If the driver wants a new vehicle, they can sell the car or trade it. They shoulder the responsibility of finding a buyer or trader and taking care of the title transfers, taxes, and other fees.

If the driver decides to get rid of the car without completing the payment term, the driver can also sell or trade the vehicle. The driver still has the responsibility to complete the payment term with or without the financed car.

Car leasing

After the car rental contract is complete, the driver can purchase the car or enter another private hire car rental contract with the same or different vehicle.

If ever the driver chooses to purchase the car they rented, there are other charges to pay.

If the driver wishes to terminate the contract before the end of terms, they should remit early termination fees. However, the cost of early termination fees is nearly compensating with the price of the remaining weeks or months of the contract.

Conclusion

At the end of the day, the decision of whether to choose car financing or car leasing in Singapore relies on your considerations, including your budget, use, and intentions. Deciding over the two requires a lot of pondering. Which one is the best for you?

CDG Rent A Car provides you with the best and advantageous short term and long term car rental deals in Singapore. Visit CDG Rent A Car today.

Paul watson
Paul watson
No Result
View All Result

Archives

  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019

Categories

  • Accounting
  • Auto
  • Business
  • Coworking space
  • Featured
  • Finance
  • Human Resource
  • Industrial Fume Extractors
  • Industry
  • Investment
  • Laboratory
  • Law
  • Legal
  • Marketing
  • Real Estate
  • Sales
  • Tech

Recent Post

6 tips for your brand communication

6 tips for your brand communication

January 29, 2023
Apply for Loans at Slick Cash and Get Money in Just Few Hours

How to make SIP investments under 80C?

January 26, 2023
Making a Successful Startup in Singapore with an EP Application

Making a Successful Startup in Singapore with an EP Application

January 23, 2023
A Complete Guide About Residential Solar Companies

A Complete Guide About Residential Solar Companies

January 21, 2023
Which Type of Worms Can Be Used for Composting?

Which Type of Worms Can Be Used for Composting?

January 13, 2023

Advertisement

Recent Post

6 tips for your brand communication

6 tips for your brand communication

January 29, 2023
Apply for Loans at Slick Cash and Get Money in Just Few Hours

How to make SIP investments under 80C?

January 26, 2023
Making a Successful Startup in Singapore with an EP Application

Making a Successful Startup in Singapore with an EP Application

January 23, 2023

Quick Link

  • Contact Us
  • Finance
  • Accounting
  • Sales
  • Business
  • Marketing

Featured

Copyright © 2019 ibusinessangel.com | All Right Reserved .

No Result
View All Result
  • Home
  • Finance
  • Accounting
  • Sales
  • Business
  • Marketing

Copyright © 2019 ibusinessangel.com | All Right Reserved .

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In