It’s a common question for many whether they should buy a car or at least instead. Cars are undeniably useful even in such a tiny place as Singapore. With day-to-day business needs and routine, transportation is an integral part of everyone else’s life. Whether you seek to bring your kids to school, go to work or travel needs, the choices for buying a van or leasing a mini bus in Singapore all boil down to your current priorities.
So the question remains: Which is the least expensive option you can take?
Many people today aspire to own a car. For others, ownership reaps plenty of benefits and the experience of driving a vehicle you bought on your own money. However, it often entails expenditures along the way, and it’s often not for the faint-hearted individual who expects to save money while owning a car spanning for a decade.
On the other hand, opting for a car or lorry leasing in Singapore strips away how far you wish to drive the vehicle. The absence of total control and the contract fees and miscellaneous fees can be a deal-breaker for many. So which one should you choose?
Should You Buy Or Lease A Car? – Understanding The Difference
Buying and leasing a car have a day-and-night difference. But what and when does one become a preferable option for you? Here’s what you need to know:
What to expect when leasing a car?
You are obligated to pay for a certain period of time-based on the contract agreement when you lease a vehicle. You need to pay for a fixed lease period of at least 24 months or 48 months, while others can last for over five years or 60 months down the road. Whether you’re looking for a Mazda 3 to drive, a mini bus or a lorry leasing for your needs, the average leasing cost often depends on whatever vehicle type you need. Understand that most car leasing companies have sizable fleets of branded cars, vans, trucks and buses that they lease out for years.
Whether you plan to opt for a lorry truck or van rental in Singapore, car leasing also entails applying restrictions on how many miles you can drive and modifying the vehicle if you wish to make changes. Many leasing companies will apply various fees. Hence it’s something you should know should you plan to go down the leasing road. Here are the affecting factors:
- Expected mileage
- The residual value of the vehicle
- Fees and taxes
- Sale price
- Duration of the lease
One of the core advantages of leasing a vehicle is that you can pay an upfront cost for less to enjoy driving a car for an extended amount of time than renting them. If the leasing period expires, you have the option to return the vehicle or opt to renew your leasing contract by paying a predetermined amount.
What to expect when buying a car?
When you plan to buy a car, you immediately own the vehicle after payment. Others would need to opt for a car loan to finance their purchase. Nonetheless, buying a vehicle in Singapore is arguably more expensive than leasing a car for two years or more (depending on the contract). For others who want to save more, aspiring car owners can always look for a new car for sale in Singapore or a pre-owned vehicle to reduce the payment cost.
Buying and owning a car is also ideal for building potential equity. Others can always resort to trading or selling it since they have total control and rights over the vehicle as an owner, unlike when you lease a car, van or mini bus that comes with certain restrictions. The following factors dictate and determine the price of buying a new car in Singapore:
- Open market value
- Certificate of entitlement,
- Excise duty
- Margin from the local dealer
- Additional registration fee
- Local dealer’s margin
The Major Advantages Of Leasing A Vehicle
Now, whether you’re planning to opt for a small vehicle for your family or lorry leasing for your business needs, here are some of the most significant advantages of leasing:
Experience of driving a different car every few years
Driving different cars every few years is a positive experience and privilege for many. When you decide to lease a car, you get the advantage of experiencing various car brands or types of vehicles should you opt to get a new one after the expired contract.
Low monthly cost
Whether you opt for a van rental or lease a lorry truck, you get a lesser financial burden of paying for the vehicle monthly. Most leasing involves smaller down payments in contrast to buying a new car.
Ability to drive higher-end vehicle
Some are after the experience of driving a higher-end and well-equipped car or truck than what they can otherwise truly afford to buy new. Some vehicles may also use the latest tech features for safety and efficiency than accessible cars.
The Major Advantages Of Buying A New Vehicle
Absolute right and control over the vehicle
Even if you buy a new car for sale or a pre-owned vehicle, car owners enjoy the rights to their vehicle, whether they wish to trade it or modify it of their own will.
Better long-term cost
Unless you’re planning to lease for a year or two, buying a new car is often cheaper overall in the long run than holding for years of leasing for as long as possible.
No mileage restrictions
Another advantage of buying a new car in the market is that owners can enjoy their vehicle without worrying about mileage and paying premiums more than most leasing options.
If you’re looking for a car leasing service or a new car for sale in Singapore, visit Think One Automobile & Trading for a one-stop shop solution for buying, trading and leasing vehicles!
