Across the world, owning any type of car can be seen as a great privilege. There are millions of people who have to commute to work or school, and travelling can be expensive or exhausting when you don’t have a ride. If you have the privilege of driving or riding your car, you can bypass many difficulties that non-car owners have to face. Many people would spend years saving up for their dream car.
But in Singapore, where road space is getting increasingly more limited and streets are in danger of becoming crowded, having millions of people owning cars is not an ideal. That’s why the Singapore government heavily discourages the purchase of vehicles. Vehicle ownership is incredibly taxed, making the country one of the most expensive in terms of car ownership. Maybe it’s time to go to a car rental company in Singapore?
If you’re one of the people who are financially secure enough to consider buying a car, then you’re part of a select few. But owning a car might be more trouble than it’s worth. If you take a closer look, it could be more advantageous to find a rental car in Singapore. Not only might you save up thousands of dollars in car ownership fees and taxes, you might also be surprised to discover that there are a lot of car rental companies that can provide you with an array of vehicles that you will be able to rent.
The truth about buying cars in Singapore
Why would anyone choose to go to a car rental company in Singapore instead of buying a car for the long term? Well, it’s simple. The biggest barrier to car ownership in Singapore is the unbelievably high cost of obtaining and maintaining a vehicle here. Did you know that there are many hidden fees imposed when buying a car? A car of the same make and model bought in Singapore is many times higher than when bought overseas. For example, you also need to pay for a CoE (short for a certificate of entitlement) that allows you to register a car for driving on the streets of Singapore.
Couple that with other general downsides of car ownership like it being a depreciating liability and that paying off car loans can mean that you’re pretty much stuck with the vehicle for the whole time that you’re trying to pay it off, and that can turn off many prospective car buyers.
Buying vs. leasing: an honest comparison
There’s an ongoing debate amongst car owners and lessees on whether it’s better to buy or rent a car. What are the major differences between the two, and why is choosing to rent a car in Singapore the popular option? Let’s take a look.
Is renting a car that much cheaper in Singapore? You would think that buying a car might be cheaper because you don’t have to worry about anything after you pay off the cost of your car, but the expenses are never-ending. You have to take into account that you need to pay to maintain your car and service it, and you also might be confronted with car insurance fees or other liabilities.
On the other hand, if you choose to rent a car in Singapore, the responsibility of maintaining the vehicle doesn’t fall onto you. Your car rental business will most likely shoulder the work of maintaining your vehicle. The most you will have to pay regarding the upkeep of your rental car in Singapore is the fuel it takes to get you places.
Value for money
Even when you’re in the process of paying off your car, do you know that your car is continuously depreciating in value? What that means is that your car continues to lose value as time passes. When you’re done paying off your car loans and have full ownership of your car, it might already have lost a significant portion of its original value.
On the other hand, depending on your rental contract, you wouldn’t be as tied down to your responsibilities in paying off costs. You can even rent a car for a single month, week, and even day, and relinquish car driving whenever you want. Another upside to not being tied down by financial obligations such as paying off a car is that you can try renting other types of cars to see which ones suit you better.
Aren’t sure about buying a specific car brand or model, or unsure whether you need but a car long-term? Then car rentals are better.
Most people would hesitate to pay the whole price of a car upfront, so they choose to pay for a car in instalments. In Singapore, where car prices are sky-high, this is probably the route that you will take. But did you know that prospective car buyers are required by law to pay around 30 to 40% of the car’s price as a down payment? Not many people have that kind of money lying around in one go. It might be much cheaper to look for a long term car rental option instead.
Car rentals don’t have the same requirements as car buying when it comes to down payments and deposits. That’s why they’re the better choice for people who are unsure about the length of time they need to drive a car around Singapore, and also for those who are not planning to stay in the country for more than a few years.
Lease a car in Singapore now with CDG Rent A Car! Reach out to them via their website now to learn more details.