5 Cautions Before Opting for Car Leasing in Singapore
There are several car rental firms around Singapore. Some of them provide consumers with rent-to-own or lease-to-own options. Like any other financial choice, a leasing deal to purchase your automobile offers pros and downsides.
Leasing an automobile is a popular alternative to buying one. It might be a cheap way to get behind the wheel of a brand-new car. However, before deciding, it is essential to evaluate some potential disadvantages of automobile leasing. The following are the five primary factors to be cautious of before opting for car leasing, whether in Singapore or abroad.
#1 Restrictions on Use and Modification
Most car leasing agreements by firms around Singapore come with restrictions on how you can use the vehicle. It can include mileage limits and restrictions on modification. Exceeding the mileage limit or making unauthorised modifications can result in fees.
#2 End-of-Lease Costs
You may be responsible for additional fees at the end of the lease term. Most premium car rental firms in Singapore and abroad charge excess wear and tear fees for exceeding the mileage limit.
#3 No Equity
Unlike purchasing a car, you cannot build any equity. Opting for a car rental in Singapore can also mean you forego your vehicle equity. You do not own the vehicle. Hence, you cannot sell or trade your car for a newer model.
#4 Monthly Payments
You typically make higher monthly payments once you rent a car in Singapore. It is much more sizable compared to purchasing a vehicle. You also pay for the vehicle depreciation over the lease term, not the entire vehicle cost.
Opting for car leasing in Singapore or abroad requires a long-term commitment. Most lease agreements typically last three years. Some firms need clients to pay an early termination fee if their financial situation changes or they want to upgrade to a newer model. Look for early termination terms in your contract. It might be critical if the vehicle requires expensive repairs. Check if you can terminate the rental after a few months or one year of ownership. If you breach the terms of your contract, you will almost certainly lose your down payment on your vehicle.
Hertz has over ten thousand corporate and franchise locations globally. Their expertise in fleet management and operational leasing enhances some of the regional distribution and assembly of motor vehicles by Darby. They are committed to delivering outstanding car rental options in Singapore that fit your budget and needs. Visit Hertz Singapore’s website to learn more about the rental firm and its offered services.