PROs & CONs Of Long Term Car Leasing

PROs & CONs Of Long Term Car Leasing

Planning to buy that shiny new car to take avdvantage of all these COVID-19 promotion? You might want to reconsider as there are a lot more finicial commitment than just the cost of the car. So what can you do if you want have a shiny new car? Well, you can consider leasing a car instead.

Let's breakdown all the pros and cons of car leasing vs car ownership.

PRO: Less Upfront Cash Payment

Currently, the laws in Singapore limit the maximum amount you can get for a car loan to be 70% of the total price of the car. This mean that you will need to have 20-30 thousands dollar readily avalilable in your bank account before you can even buy a car. 

However, for Long Term Car Leasing, the upfront payment is usually only about 1-3 months of the monthly rental. which is usually less than $5,000. So you do not have to pay as much to drive off with that brand new car!

PRO: No Worries About Road Tax, Insurance & Maintainence

Driving without a valid Road Tax or Insurance can land you in a lot of trouble. These ongoing cost are bear by the owner of the vehicle. So if you lease your car, these items are no longer your worries and the rental company will take care of them for you.

PRO: Less Commitment

Once you buy a new car, all your finiances will be locked down by the car for the next 10 years. Regardless rain or shine, you will have to pay for the monthly car loan, carpark and all other ongoing cost. However, this is not the case for Long Term Car Leasing.

Car leasing contract can be as short as 3 months. Meaning much lesser commitment and more flexibilty for you. At any point, if you do not feel like driving, you can easily stop renewing your contract and you no longer have to pay for the car.

PRO: Brand New Car

Once you buy that car, you will be stuck driving the same car for the next 10 years. While if you lease a car, you can have the option to change to another brand new car once your contract is up. This mean that you can always be driving a brand new car every time you renew your contract.

CON: Higher Cost In Long Term

While leasing a car offers many convienences that does not come from car ownership, it is not free. While you pay a smaller cost upfront, your monthly rental is usually much higher compared to the monthly repayment of car loan. In the long run, this cost adds up and you might find yourself paying more for a car that is not yours.

CON: It's Not Your Car

Accidents happens. That's why all cars on the road are required to have insurance. When you are caught in a minor accident in your own car, you can always choose to repair the car at a later date at a workshop of your choosing at your own convinence. However, for car leasing, since the car is not yours, you will usually have to report the damage to the rental company immediately after an accident and get it repaired at their workshop as soon as possible. 

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Long term car leasing has it benefits and flaws, but if you are not planning to drive the car for year, car leasing can be an more affordable and flexible way for you to get onto the roads.

Why not check out our selection of long term cars? From economy hatchback to luxury sedan, we will have the perfect car for you.

Browse Long Term Cars

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Hari Raya Puasa 2020 - Car Rental Guide

Hari Raya Puasa 2020 - Car Rental Guide

It's that time of the year where our Muslim friends in Singapore starts to prepare for Hari Raya Puasa.

If you’re looking to rent a car to travel around during the holiday, here’s a quick gudie on what you need to know about renting with us during this Hari Raya Puasa.

During this period, as everyone travels to visit their friends and family, there will be an influx of people heading to Malaysia or visiting in Singapore with their families.

Quick Background on Car Rentals during Hari Raya Puasa

These are some things that you might want to take note of when it comes to getting around during the Hari Raya Puasa period if you don’t own a car.

  • First, it’s hard to use public transportation during this period, as many people are also doing their own visitations, this means that public transports will be very crowded.

  • Secondly, it will also be harder to get a cab during this period as a lot of the drivers will be on holiday as well. Which means standing longer under the sun.

  • Thirdly, a typical cab can only sit up to 4 passengers which make it inconvenient for bigger family as they might need to get 2 different cab just to accommodate the whole family.

  • Finally, the demand for rental cars during this period will be sky time high for this period. Many people will be looking to rent a vehicle to avoid public transportation to transport their family.

FAQ

We’ve compiled a list of the frequently asked questions that we have received from our customer.

Q1. Why are they all 5 days and 7 days packages? Are there any 1 day rentals?

Majority of the Car Rental companies in Singapore sell 5-7 days packages as these packages help to cover manpower constraints. This will give their own staff to do their own visitations. As a result, they will not be operating during the festive period.
It’s rare to find a single day rental company that is open on Hari Raya Puasa. There may be unlicensed private rentals but we advise against it due to a couple of reasons.

  • Unclear service agreements - It's fine when nothing goes wrong but it is unclear who is liable and what damages are to be paid if something does. Being unclear on what you've agreed on also leaves it to interpretation and they may hold it against you.
  • Insurance coverage - The risks of accidents and costs of repairs should already be calculated and accounted for as a business risk for all legitimate car rental companies. Hence, insurance helps them to mitigate the risks. Private rentals may not have the required insurance and it's also unclear how much damage would you be liable for.

Q2. Why are prices so high? Why is there a surcharge compared to normal days?

  • Instead of booking the rental car on a daily basis, you are required to book the car by a minimum package period of at least 5-7 days. This raises the total price.

  • Demand during the period is overwhelming hence all car rental companies increase their prices during these periods. Eg. Peak Hour Surcharges in Taxis

(To help you with the cost, Drive.SG is now giving Early-bird discount of up to $50 for Hari Raya Rental Packages for the 1st 10 customers)

Click Here To View Hari Raya Puasa 2020 Packages.

Tips for Renting in Hari Raya Puasa

Tip #1 Book Early

Booking Early means a wider variety of car models at all price points. More popular models or cheaper packages tend to get snapped up early. Larger capacity vehicles tends to be more popular as well.

Drive.SG is now giving Early-bird discount of up to $50 for Hari Raya Rental Packages for the 1st 10 Customers

Tip #2 Ensure you’re clear on what you’re renting 

On top of the confounding complexity for first time rentals, there are also additional considerations when it comes to Hari Raya Puasa. Here’s what you should specifically look out for especially when renting during Hari Raya Puasa.

  • Car Specifics

    • Does it cater to Probation Drivers? Does it allow Malaysia Entry?

    • Due to insurance reasons, some rental companies do not rent out to probation drivers or allow Malaysia Entry. Eg. Probation drivers are considered at a higher risk of accident, hence increasing the cost of insurance.
  • Package Dates

    • While majority of Companies only do week long packages, there are slight variations in their dates, usually a difference of one or two dates.

    • Be clear on what type of package dates are available. Eg. 21st - 26th May 2020 or 22th - 29th May 2020

  • Package Prices

    • The prices quoted would be based on a list that these companies should publish publicly. Always ask for the list, it’s usually priced based on car categories of that car rental partner.

    • Prices vary from partner to partner but usually are upwards of $650 for a 5-Days Package.

Tip #3 Be Clear on Additional Surcharges

  • Heading to Malaysia? Need a child seat? Having a second driver?

  • Be aware that these add ons are typically not included for most rentals and are payable on collection of the car (that way you can still change your mind if you decided not to go to Malaysia)

  • Premium partners may include some add-ons. eg. Second Driver but it's still a good practice to factor them when evaluating the different cars.

 

There are over 100 Car Rental Companies in Singapore, to call every car rental company on the models and rates available to make a full comparison is hard.

Of course, you can find most of these information consolidated on one website at Drive.SG's Hari Raya Puasa's Page, that would make it easier for you to decide which cars you’re looking to book.

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How to Avoid Car Rental Scams

Car rental scams is on rise. According to SPF, victims of car rental scams had lost at least around $25,000 between January 2019 and November 2019.

So we are here to tell you about how can you identify and avoid being a victim of a car rental scam.

1)     Avoid car rental ads using generic photos & is unable to show a photo of the actual car

All car rental company should be able to easily produce a photo of the actual car if you asked for it since the car will be parked at their premises when it is not being rented out.

If the company refuse to show you the photo of the car or only show you stock images when you asked for it, it is a huge warning sign that it could be a scam.

 

2)     Beware of rental cars with unusually low prices

Owning a car in Singapore is not a cheap task. That goes the same for car rental companies. Every car has an upkeep cost and nobody would run a business that doesn’t earn any money. So if you spot a car that is much cheaper than expected (eg, a 7 years old sedan at $30/day or a brand new sedan at $50/day), do be careful as that is another warning sign

 

3)     Beware of rental company with no reviews

Singaporeans like to complaint & give their feedback regardless if the experience is a positive or negative. So if you have a hard time finding reviews for a particular company, do be careful as the company might not really exist.

 

A company with 5 1-stars review is still more trustworthy than a company with 0 reviews.


Afraid of car rental scams? Why not rent a car on Drive.SG instead? With over 500+ cars from over 100+ trust-worthy car rental companies. You do not have to worry about being scam of your money!

Browse and rent your favorite car today with us!

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Get Best deals on Chinese New Year goods

Get Best deals on  Chinese New Year goods

Chinese new year shopping can get a little crazy during this time of year. There are so many things that need to be bought: from new pyjamas and clothes, to snacks and mandarin oranges. As a bargain hunter, where do people go to get the best or even cheapest deals in Singapore? 

Here, Drive.SG would like to help you with these little tips:

1. Head to Malaysia

Get your clothes at the cheapest price possible by shopping at the Factory Outlet Store (F.O.S.) in Malaysia. Drive a car into Johor Bahru and head for the nearest shopping mall. How about shopping at the KOMTAR JBCC? Or JOHOR BAHRU CITY SQUARE, conveniently located about half an hour from Singapore?

If you want something on the nicer end of things, drive to JOHOR PREMIUM OUTLET (JPO) where you can shop from renown brands at a cheaper rate (the exchange rate is now SGD1: RM3.06!) 

Take note: DON’T go on a weekend! You will not want to get caught in the traffic jam coming back to Singapore.

2. Industrial estates - Food factories

Looking to buy Chinese new year snacks real cheap? Did you know that industrial estates have companies selling directly from out of their warehouses at cheaper rates? Get your Chinese new year goodies in bulk from these warehouses if you want to spend less for more. The most popular spot in recent years would be the Woodlands industrial estate. The roads along WOODLANDS TERRACE and WOODLANDS LINK houses many food factories where you can get your CNY snacks at discounted prices.

You can get the ever popular Chinese New Year staple, Bak Kwa, at a discounted price! Just look at these mouthwatering CNY goodies! 

Do note that not all food factories are open for retail, but just keep a lookout for those that do.

As the Woodlands industrial estate is quite out-of-the-way for people who do not live in the north (there is only one bus servicing the area!), we suggest driving a car in. You can store all your “groceries” in the boot and go back for more!

3. Chinatown Singapore

Last but definitely not least, we suggest having some patience. Why? We’ve always known that Chinatown provides the greatest deals on Chinese new year goods in Singapore, but did you know that it gets more discounted the NEARER it is to Chinese New Year Day? If you’re willing to brave the crowd in Chinatown, the last few days before Chinese new year’s eve would be the optimal time to give Chinatown a visit for those CNY goodies like mandarin oranges and pussy willows (that flower you buy for Chinese new year).


Travelling to all these places requires some form of transport. For those who do not own a car, it is not advisable to try squeezing in the buses back from Malaysia carrying bags of your shopping haul (what if you end up having to stand the whole way?)

Why not rent a car with us during this CNY period to do all your shopping? With 7-days packages as long as $688, there is something for everyone!

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Chinese New Year 2020 Car Rental Guide

Chinese New Year 2020 Car Rental Guide

The guide has been updated for Chinese New Year 2020. Check out Chinese New Year 2020 Car Rental Guide below!

It’s that time of the year again in Singapore where everyone of Chinese ethnicity prepares for the New Year and heads home to celebrate with their families.

If you’re looking to rent a car to head home to go on a holiday, here’s a quick primer on what you need to know about renting with us during the Chinese New Year period.

Quick Background on Car Rentals during Chinese New Year

As everyone heads home to visit their relatives and friends, there will be an influx of people heading to Malaysia or visiting in Singapore with their families.

That typically means two things when it comes to getting around during the Chinese New Year period if you don’t own a car.

  • First, it’s hard to use public transportation or get a cab during this period as well, many drivers and taxis are also doing their own visitations. On top of that, the frustration of getting transport is compounded if you are making multiple trips usually.

  • Second, the demand for rental cars during this period will be at an all time high for this period. Many peolpe will be looking to to avoid public transportation to transport their family.

Frequently Asked Questions

We’ve compiled a list of the top questions that we have receied from our customer.

Q1. Why are they all 5-7 day packages? Are there any 1 day rentals?

Majority of the Car Rental companies in Singapore sell 5-7 day packages as these packages help to cover manpower constraints. This will give their own staff to do their own visitations. As a result, they will not be operating during the festive period.
It’s rare to find a single day rental company that is open on Chinese New Year. There may be unlicensed private rentals but we advise against it due to a couple of reasons.

  • Unclear service agreements - It's fine when nothing goes wrong but it is unclear who is liable and what damages are to be paid if something does. Being unclear on what you've agreed on also leaves it to interpretation and they may hold it against you.
  • Insurance coverage - The risks of accidents and costs of repairs should already be calculated and accounted for as a business risk for all legitimate car rental companies. Hence, insurance helps them to mitigate the risks. Private rentals may not have the required insurance and it's also unclear how much damage would you be liable for.

Q2. Why are prices so high? Why is there a surcharge compared to normal days?

  • Packages from car rental companies are sold in 5-7 day packages, increasing the total cost.

  • Demand during the period is overwhelming hence all car rental companies increase their prices during these periods. Eg. Peak Hour Surcharges in Taxis.

Click here to view Chinese New Year Cars in One Page 

Car Rental Tips Renting During Chinese New Year

Tip #1 Book Early

Booking Early means a wider variety of car models at all price points. More popular models or cheaper packages tend to get snapped up early.

Drive.SG early-bird discount is now live! Be the 1st 10 Customers and get up to $48 off your rental!

Tip #2 Ensure you’re clear on what you’re renting 

On top of the confounding complexity for first time rentals, there are also additional considerations when it comes to Chinese New Year. Here’s what you should specifically look out for especially when renting during Chinese New Year.

  • Car Specifics

    • Does it cater to Probation Drivers? Does it allow Malaysia Entry?

    • Due to insurance reasons, some rental companies do not rent out to probation drivers or allow Malaysia Entry. Eg. Probation drivers are considered at a higher risk of accident, hence increasing the cost of insurance.
  • Package Dates

    • While majority of Companies only do week long packages, there are slight variations in their dates, usually a difference of one or two dates.

    • Be clear on what type of package dates are available. Eg. 22nd Jan to 29th Jan 2020 or 24th Jan to 31st Jan 2020

  • Package Prices

    • The prices quoted would be based on a list that these companies should publish publicly. Always ask for the list, it’s usually priced based on car categories of that car rental partner.

    • Prices vary from partner to partner but usually are upwards of $788 for a base class sedan.

Tip #3 Be Clear on Additional Surcharges

  • Heading to Malaysia? Need a child seat? Having a second driver?

  • Be aware that these add ons are typically not included for most rentals and are payable on collection of the car (that way you can still change your mind if you decided not to go to Malaysia)

  • Premium partners may include some add-ons. eg. Second Driver but it's still a good practice to factor them when evaluating the different cars.

 

There are over 100 Car Rental Companies in Singapore, to call every car rental company on the models and rates available to make a full comparison is hard.

Of course, you can find most of these information consolidated on one website at Drive.SG’s Chinese New Year’s page, that would make it easier for you to decide which cars you’re looking to book.

Continue reading article ›