There are many car rental/leasing companies in Singapore, each catering to different needs. At Drive.SG, we spend the time helping to bridge the gap between the companies and consumers looking for a car to match their needs. Our customers tell us that car leasing is one of the most difficult and painful decisions they have to make. To ease that “pain”, we have prepared this list for you in the hopes of making the process more enjoyable.

  1. Identify your need
  2. Choose your price point
  3. Gather offers
  4. View vehicle & understand terms & conditions
  5. Complete handover

 

Now let’s look into each of those points:

1. Identifying your need

Be it for business or leisure, your transportation needs are unique to you. Ask yourself these questions: What are you looking for in a car? Are you looking for something economical? Do you just need to get from point A to point B? Or are you looking to ferry your kids to and from school? Do you need a van to transport goods? Or just looking for a flashy ride to show your bling?

After answering these questions, think about the vehicle that matches your needs.

What type of vehicle would you need? If you are ferrying a lot of people, a MPV can fit up to 7 people at one go. Need more space or need something rugged? Try the SUV or a Sports car. If you want a flashy ride, then you are looking for a luxury car. Transporting tons of goods? Then look no further, you want either a wagon or any commercial vehicle. Finally, if you are looking for an ordinary vehicle for ferrying your kids to and from school or to run some daily errands, the mid-sized sedan or hatchback would suit you just fine.

Click here to our post about the different types of cars!

What kind of insurance coverage should you go for? Most car rental/leasing companies offer comprehensive insurance coverage. However, they do vary in the degree of protection. You can choose to stick with the basic coverage or opt to pay more for Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW). You can refer to our post about liability terms for the glossary:click here

Next, look at where you are going to use the car. This is unique to Singapore as some leasing companies do not allow for the use of their cars in Malaysia. Before you proceed with the lease, you might want to consider whether you will be driving into Malaysia and which parts of Malaysia you intend to visit. Then, check on the leasing policy with the company you are leasing from.

Of course, do not forget the duration of your lease. Check the length of your contract. Usually, car leasing refers to rentals that are at least a year long. Here at Drive.SG, we can accommodate for a wider variety of needs. Leasing can be as short as a few months as well. The common industry practice is to allow for lease of brand new cars if the length of contract is between 3 to 5 years. Otherwise, you would be looking at leasing a pre-owned vehicle.

Car leasing can be an excellent choice (or the smarter choice) when you are trying to be economical and not spend so much monthly for the upkeep of your own car. A leased car is as good as owning a car, but at a cheaper cost. You do not have to bear the costs of servicing and repairs, or even road taxes. This helps you to save much more monthly.

2. Choose your price point

After you have decided on the type of vehicle and plan that you are looking for, you need to look into your budget.

Again, this is unique to Singapore. Foreigners tend to under-price because they are unfamiliar with the cost of cars in Singapore. On the other hand, Singaporeans underprice because they don’t know that miscellaneous fees adds to the price of the car lease.

This becomes a problem because car rental companies have to take time to educate consumers on the cost of cars and car leasing. This is why it takes time to get a quotation.

FUN FACT : More than 50% of requests for quotation that Drive.SG receive are severely underpriced.

Market rates can vary by more than $200-$300 a month for all classes of vehicle.

FUN FACT(yes, another one) : The outlier is the top-of-the-class Mercedes Benz S300L where the price variation can be as high as $2,000 a month!

3. Gather and Compare Offers

Once you have decided on your price point, you can now start gathering offers from car rental/leasing companies and compare their offers. Make a list of car leasing companies and start your search, keeping in mind everything we have discussed thus far.

For an efficient way to do your search, use Drive.SG!

Drive.SG partners with more than 33%  of the car rental companies in Singapore. Our partners frequently update their prices and inventory on our site. So if you are looking for the most updated information, look no further! We can help you. When you request for a quote, the rates in our database are formatted in a nice table and sent to you. This makes it easier for you to build a reference point for your research.

If you are looking for someone to do the groundwork for you, you can employ the help of our in-house leasing specialist. He will personally attend to your request. :)

Just email him at [email protected] or fill up our quotation request form: click here

DISCLAIMER: Don’t worry about the prices we send you. We do not ‘mark-up’ the rates for this service.

Next you will be wondering how to compare the offers you have received. Well, you may click here for a comprehensive guide on how to.

4. View vehicle & undestand special terms

Every car is unique, even if they are the same model. Each car is equipped differently and has worn (over time) differently. This is when you decide if the offer given to you is fair for the condition of the car presented to you.

Here is another checklist of the things you should look out for:

  • Smell – Is there a funny smell in the car? Some smells stay in the car and do not dissipate (e.g. smoke from cigarettes). This can be a deal breaker for some, but if it does not bother you then read on.
  • Look – Does it look to be in good condition? The fact is – you get what you pay for. If the price is low, you are likely to get a car that has been put to very good use. Consider how important the appearance of the car is to you. Some of our customers view the car as a status symbol. As such, they tend to think twice about being given a car that is quite worn out.
  • Feel – Go for a test drive. Does the car steer funny? Is it emitting unusual sounds? Have you noticed any warning signs (or lights)? Make sure these issues are resolved before signing the contract. Or if they promise to fix it in the future, get this agreement put to paper (as a clause in the contract). If the rental/leasing company fails to deliver, you can terminate your lease and recover your security deposit.
  • Miscellaneous – Is the car that is presented the same as what was described to you? For example, if they promised you a blue 2010 model with low mileage, and the car presented falls short of the description, WALK AWAY! You may also wish to check the additional features that you might need (i.e. Bluetooth telephony, ISOFIX child seats, reverse cameras, GPS – some of the popular requested features)
  • Venue – Look around the showroom. Is it presentable? This might not be true, but sometimes the presentability of the showroom predicts the quality of service you will be receiving in the future. However, do note that some mom and pop shops that operate out of small premises can be equally as safe and secure as the bigger and classier showrooms.

5. Complete handover

After you have thoroughly examined the car and found it acceptable, you may then proceed to signing the contract.

Do remember that if the car is damaged (even before handover) in a manner that can be claimed as accidental damage, you are liable for it at the end of the lease. Your security deposit could be forfeited and used to repair the damages. (Though this has not happened in our experience, it is still possible in theory)

When you sign the contract, make sure these items are stated clearly:

  • The lease amount, monthly payment due date, & length of contract
  • The security deposit you have placed
  • The insurance coverage and the excess (additional named drivers if applicable)
  • Emergency breakdown contact
  • Termination penalties

Once everything is done, you may now drive off with a peace of mind. Should anything happen during the period of leasing, just ring up you rental/leasing company (they will assist you 24/7!).

FAQ: Is there a better price if I sign up for the lease under my company’s name? The answer is no. The business cost of maintaining the lease does not change, regardless of who is renting and in what capacity. Hence, the pricing does not change for businesses or for individuals. However, be rest assured that together with our partners, we strive to deliver excellent value for outstanding service given to the customer.

Start Leasing Now!