New cars are being made every day. Since myriads of vehicles are available in the market, anyone can buy a new one (or a used one) or lease/rent. Whether you have the cash or are planning to opt for car refinancing in Singapore to fund your budget, there are always advantages to buying or leasing a vehicle.
Thus, you must decide whether to lease a car or buy one. There’s so much difference between the two options from a practical and financial standpoint. As a customer, purchasing a new vehicle requires you to pay its price in full, while leasing requires you to pay the contract fee based on the time you use the car.
To Buy Or To Lease? – Determining The Best Choice For You!
It is always a struggle among many to find an answer to a simple question. The idea of travelling anywhere you want is appealing to anyone. Whether you are using it for your personal or business-oriented travels, it’s always a concern in tackling the idea of whether you should lease or buy a new/used commercial vehicle in Singapore.
Despite the two being valid ways to get your hands on a vehicle, there are things to consider, given that the advantages and disadvantages can lay out restrictions and hindrances in making sound choices.
When leasing a car is best for:
Leasing is one of the most common options for commoners, whether you’re an average lay person or a business person who is always on the go. One thing that makes leasing a practical option for many is the less substantial financial commitment it requires. Unlike purchasing a new car for sale in Singapore, you can lease a vehicle with a monthly cost incurred at an affordable rate that often doesn’t pass above tens of thousands of dollars. Most popular four-seater vehicles like Mazda 3 can cost around $1,500 up to $1,800 per month.
For many who are looking for a convenient or luxurious vehicle to experience, leasing is a budget-friendly option that gives you a more manageable contract. However, you have to bear in mind that there could be mileage restrictions and additional charges that may come during the leasing process. Hence, if you are planning to lease a vehicle, be sure to ask to determine the factors that may affect the charges.
The benefits of leasing a car:
Lower payments
If you are keeping track of your monthly expenditures and have less budget for a new vehicle, opting for a lease can provide an affordable way to get your hands on a car that you like. Whether you’re planning to have a sedan for your personal travel or opting for a mini bus in Singapore for business use, you can expect lower payments in obtaining a car per contract arrangement.
Lower repair costs
Since leasing terms are short, repairs are less necessary. But apart from that, most manufacturers (and some leasing agencies) will provide cover for repair and maintenance costs. Hence, if you are assessing and reviewing your lease contract, make sure to check if the repair and maintenance are covered to prevent unwanted additional charges.
You can switch different cars hassle-free
Perhaps one of the most exciting and beneficial perks of leasing a car is you get the chance to experience driving different car models every now and then. A car lease can last from a couple months to a year or two, and because lease terms are short, you can drive a vehicle without having to commit to purchasing a used or new car for sale in the market.
When buying a car is best for:
If you prefer owning a vehicle and taking control of it, buying a used or new car for sale might be your best bet. You would not have to be concerned about mileage limits and other factors that can incur in the leasing contract for possible additional charges.
However, you need to be aware of the various costs of owning a car in Singapore. Maintenance costs, COE and road taxes are a few things that entail having your own vehicle. On the other hand, you will also need to do more research work if you plan to opt for a loan or car refinancing in Singapore. If you are looking for a new vehicle, you can expect an average cost of around $45,000 to $50,000. Hence, others opt for pre-owned cars or CPOs.
The advantage of buying a new car:
You can trade or sell the vehicle
When you own the vehicle, you have complete and total control of it. In most cases, car owners tend to sell or trade a vehicle for a newer model based on the car’s market value, mileage and condition.
No mileage restriction
If you buy a car, there’s no need for you to keep track of your current mileage (unless you’re planning to sell or trade it in the future). Unlike renting a four-seat or mini bus, buying a new vehicle means total control and ownership of it.
More room for upgrades
Car owners can enjoy modifying and upgrading the components of the car to match their needs. Whether it’s adding a new safety feature or installing a vinyl, you have the decision of whatever is needed to serve its purpose. Unlike when leasing a car, you are stuck with the unit’s features. If optimisation and making an adjustment is something that you seek, buying a used or new car model should be your go-to choice.
If you are looking for an option to refinance car loan in Singapore, visit Think One Automobile & Trading for a one-stop service for buying, selling and exporting vehicles.