A new car may sound like a great idea until you realise how expensive it can be. With the high amount and papers you need to sign, you’ll be shocked to see its difference from the OMV with all the down payments you need to pay.
More so to say, a new car is a commitment, and you must have the extra fund to pay for it. How about the majority who can’t afford one but want to drive a Mazda or Sedan? You rent a car of course!
What Is A Leased Car In Singapore?
Car leasing in Singapore is like paying house rent every month. It’s possible to lease rather than purchase an automobile, which means you pay for the time you use the vehicle before bringing it back to the dealership.
It’s not yours, but it feels like yours since you pay for it. It’s a rental car in Singapore with the only difference of the time you drive it. A three-year or four-year car rental leasing agreement is standard for automobile leases.
A lease car in Singapore is an excellent option if you want to change your automobile frequently but don’t want to deal with the headache of keeping it after the contract ends. It’s easier to budget for a private hire car rental since they set all the payments, and you don’t have to worry if the car’s price falls suddenly.
The dealer will look at the new car’s value compared to its sales price to determine how much you owe each month. Whether you’re a first-time driver or are already on the road for a while, car leasing in Singapore is a popular choice since it’s cost-effective and worry-free.
You only need to give it back at the given schedule when the contract ends. You’ll be allowed to rent a car again for other vehicles as long as there aren’t any problems above routine maintenance.
A Step-By-Step Guide In Car Leasing For First-Timers
Step #1. Research approved car dealers
When you sign up for car leasing in Singapore, you should know that you’re committing since it will be a long term car rental. Although car rental is an excellent way to get without making a significant capital investment, you are still putting out money.
Research the best auto leasing companies in your area online and learn their customer evaluations. Before making a hefty down payment on a leased vehicle, make sure you do this step.
If your local options aren’t up to the standard, you may venture from other dealers and compare one another.
Step #2. Check your financial capacity
The next step is to figure out how much of a monthly rental payment you can manage. Although a lease car in Singapore is cheaper than owning one, you still need to prepare monthly costs.
Make sure you prepare enough money for any additional fee you have to pay. It will also help you in determining which car you can afford. Some dealers who offer long term car rental will let you choose from a Sedan, SUV, MPV, Luxury and commercial vehicles.
Step #3. Secure your car insurance
There is various coverage that you can agree to pay. This insurance will surely go a long way, especially for a lease or rental car in Singapore.
GAP insurance
If your lease automobile is lost or wiped off, GAP insurance will pay the remaining balance owing on the vehicle’s loan. GAP insurance costs depend on several factors, including the length of the coverage, your personal information, and the make and car model.
Before your rental car in Singapore, make sure you purchase this either from dealers or specialist suppliers.
Collision coverage
In any case, if your car is involved in unexpected events such as robbery, accidents, and natural disasters, comprehensive or collision coverage can cover the cost of fixing or replacing your vehicle. It will help you feel more at ease if something happens with your car rental. Some dealers also provide a replacement to minimise disruption in your daily task.
Damage coverage
If you know you’ll be using the car most of the time, damage may happen for long term car rental. You may pay for this insurance in advance to avoid being penalised for specific damage after your lease.
Step #4. Visit a few car dealers and compare
After your research, the next step is to visit those you choose. Check out the dealer’s showrooms. Have a test drive, weigh the advantages and risks, and check the exterior and interior. Choose a car rental you like to drive for the long term.
Most dealers offer certain cars such as Sedans, SUVs, MPV, Luxury and commercial vehicles fit for car leasing in Singapore. After your observation, make sure you ask them about the agreement and what promotions they have at the moment.
Step #5. Discuss the conditions of your rental agreement
Your dealer will discuss the requirements, including usage, the price of the car, and interest payment when leasing a vehicle. It may help you secure a lease car arrangement in Singapore that suits your demands and financial situation.
When discussing, consider the maintenance package you’ll be acquiring. It’s a good idea to get a maintenance package if you’re planning to maintain your car for more than four years or travel more than 25,000 miles a year.
Step #6. Avoid damage and maintain your car
Since this is still a car rental except its long term, you should know the importance of maintaining it. Avoid drives that will cause any wear and tear. Be advised that if the automobile is compromised beyond reasonable wear and tear or exceeds the mileage limit once you return it, you are likely to be charged a penalty fee.
It’s in your best interest to maintain the appearance of your car rental to prevent incurring additional costs. Remember to ask your dealer about early termination and late return and the fees that come with it.
Lease a car with ComfortDelGro!
Finding the greatest deal is easy with the help of firms like ComfortDelGro! Choose from their car rental,private hire car rental and lease car options in Singapore. Visit them today!
