PROS AND CONS: BUYING A CAR VS. RENTING A CAR IN SINGAPORE
Next to houses, cars are typically the second biggest investment one will ever make. However, the continuous surge in cost of living has led people to delay ticking this off the priority list. Luckily, there’s another way to work around this unsettling truth. There’s no need put off driving a car if you consider renting one.
How does car rental work?
Renting a car is basically getting a car—but without the commitment. You pick your desired car, rent it for for a duration of your liking, and drive it privately! Lease duration can be as short as one (1) day, to as long as ten (10) years. Now you get to drive the car of your dreams without the fear of commitment. Is this the best deal or what?
But hey, we don’t want to be biased. That’s why here in this article, we’re giving you an overview of the pros and cons of buying a car vs. renting a car.
BUYING A CAR: CONS
- Insanely high cost. The reason why vehicles in SIngapore are expensive is because it comes with added charges such as Excise Duty, Additional Registration Fee (ARF) Certificate of Entitlement (COE), and yes, dealer’s commission.
- Dragging loan interests. Unless you’re planning to pay in full, you can’t get away with interest rates. The higher the amount you borrow and the longer the term you intend to get, expect a higher interest rate.
- Recurring maintenance cost. People think that the expense of buying a car stops at car costs. Only a few remembers the need for maintenance to ensure it works just as fine as when it was still brand new. On an average, a vehicle is recommended to be serviced twice a year, not to mention the cost of having it car washed regularly.
- Cost of insurance. Aside from the fact that it is mandatory to get an insurance for a vehicle in Singapore, this is also for your own protection. However, getting an insurance is another expense on your part.
- Selling your vehicle once you decide to replace it. Say it’s been 10 years and you finally decide to replace it. It’s on you on how to trade, sell, or dispose your car.
BUYING A CAR: PROS
- Option to dress up your vehicle. Some car owners are keen on accessorising their cars. Because it’s yours, you can freely do whatever you want with it and no one else will mind.
- You can bring it outside the country. Fancy driving your way to Malaysia? Feel free to do so.
Now moving onto the pros and cons of leasing a car.
RENTING A CAR: CONS
- You are expected to take care of your car. Lessors expect you to return the vehicle in a good state.
- Not all vehicles are brand new. Renting a car means using a car that might have already been used by previous hirers.
RENTING A CAR: PROS
- No commitment. Imagine driving a different car every year?
- Lower monthly payments. The cost for paying for a rented car is less than the cost of paying for a car loan.
- No frills rate. Remember those Excise Duty, Additional Registration Fee (ARF), and Certificate of Entitlement (COE)? No need to worry about those!
- No need to spend on maintenance cost. You wouldn’t have to dread that time of the year when you have to bring your vehicle for a service. Maintaining your car is part of our job.
- Comes with comprehensive insurance.
We all wish we could get protection without the added expense on our part. Good thing every vehicle comes with a comprehensive insurance!
- Unlimited mileage. You read that ride! You aren’t limited to a certain amount of miles which you can use your rented car. Drive all day, everyday, and we won’t mind.
Now that we’ve laid it all out. It’s all up to you. Would you rather buy? Or rent? Share it with us by commenting down below! Also, don’t forget to follow us on our social media accounts to get first dibs on more posts like this.