Should I buy or lease a car in Singapore?
Are you in need of a car to run your daily errands but worry about the hassle of owning your own vehicle? Are you an expat on a business trip considering whether to buy or to lease a car for your needs? Wondering what is the amount of cash you need to pay upfront for buying and leasing a car in Singapore? To help you with that, we have done a breakdown of the finances for buying vs leasing a bread and butter car – Honda Vezel.
Finances breakdown for buying VS leasing a Honda Vezel
Buying a brand-new Honda Vezel from a reputable parallel importer like Cars & Stars will cost you $85,888 (price as of April 2018 1st COE tender). If you take up 70% bank loan for 7 years repayment period (subject to bank approval), you will still have to pay an upfront down payment of $25,888 before you can drive the car. Not forgetting the monthly instalment of $825 excluding insurance premium, road tax and other necessary maintenance fee.
On the other hand, leasing a brand-new Honda Vezel (with a 1-year contract) from Ace Drive would cost you $1,788 per month (subjected to 7% GST) including insurance, road tax, servicing, parts wear and tear, 24-hours breakdown service and unlimited mileage. The upfront payment required is only $5,364 (1 month’s refundable deposit + 1 month’s advance rental + first month’s rental) which is about 20% of the down payment to buy a brand-new Honda Vezel. The sky-high COE prices and huge amount of down payment are the main reasons why many people opt to lease a car so as to free up their cash flow.
To help you further in deciding the best option, we have summarised the benefits of both owning and leasing a car:
Benefits of Owning a Car
- Need not be bounded by Terms & Conditions of rental agreement
- No rental contract
- Freedom to sell car anytime
- Freedom to drive to in and out of Malaysia with lower insurance excess
- Guaranteed Preferential Additional Registration Fee (PARF) rebate when you scrap or sell your car
Benefits of Leasing a Car from Ace Drive
- Full coverage insurance for yourself and/or named driver
- 24/7 breakdown service/roadside assistance in Singapore
- All costs of insurance, maintenance, road tax and repairs will be covered by us
- Free replacement car while your car undergoes any servicing/maintenance/repairs
- Free wear & tear parts replacement
- Wide range of cars available for lease – Sedans, Coupe, Cabriolet, SUV, MPV
- Affordable prices for both luxury and Japanese cars
- Option to switch vehicle model when needed
- Low upfront payment
Getting a car is one of the biggest purchases one can make especially in Singapore, hence it is crucial that you consider the pros and cons for buying and leasing a car before deciding the best option that fits your budget and needs. We agree that nobody likes to be bounded by Terms and Conditions and leasing contract, but in times when your vehicle breakdown or need roadside assistance, Ace Drive’s 24 hours breakdown service will be your saver to provide assistant and a replacement vehicle. Leasing a car is especially suitable for people who needs a car for daily errands but do not wish to pay the hefty amount of down payment and do not wish to take care the issues that comes with owning a car.
Interested to find out more about leasing a car from Ace Drive? Call our corporate sales hotline at +65 9178 7705 to find out more.