Here’s Why You SHOULD LEASE and NOT BUY a Car

Car Rental VS Buying a Car: Don’t have to worry about depreciation when you lease a car!
In Singapore, depreciation costs can easily be $10,000 a year for a brand new car.

1. No hefty upfront costs (deposits).

 
When you purchase a car : Minimum down payment of 30-40%

When you buy a car, you are expected to fork out a huge down payment of 30 – 40% of the car price depending on the Open Market Value (OMV) of the car. This down payment can easily amount to tens of thousands of dollars especially with the high COE prices now.

For the remaining 60 – 70% of the car price, you can pay in cash or in most cases, a loan is taken to cover the car price. Depending on your credit rating, your interest rates may be high and/or may not be able to loan the amount that you want.

 

When you lease : Just a deposit and first week / month rental.

Whereas if you lease a car, all that you need to pay upfront is a deposit (At GC Cars Leasing, $500 depending on the car model), advance first week / month rental and subsequently make monthly rental fee payment.

 

Car Rental VS Buying a Car: No hefty upfront payments are needed!
No hefty upfront payments are needed when you lease a car. Free up your finances for other things!

 

2. Eligibility for a loan

 

When you purchase a car : Loan eligibility check needed and may not be able to get a loan.

There are many possible reasons why many people have difficulties in getting a loan. This could be due to monthly income, financial commitments and credit rating score.

 

When you lease : No loan or eligibility check needed.

If you do not wish to fork out tens of thousands of cash available in the event that you are not able to secure a loan, you should consider leasing. If you think that you are unable to secure a loan, consider leasing.

 


3. No exposure to Total Debt Servicing Ratio (TDSR)

 

When you purchase a car : Impact your TDSR when you take a loan

On top of the maximum loan amount legally allowed in Singapore when buying a car, one will have to take note of the TDSR rule. TDSR refers to the proportion of a borrower’s gross monthly income that goes toward paying off their monthly debt obligations, which includes the loan they are asking for.


When you lease : No loan, No impact on TDSR

Buying a car can negatively impact your TDSR as the loan amount that you have to pay for the car will be counted in your TDSR and affect your ability to borrow for other big-ticket items like a house.

When you lease a car, you will be making monthly payments and therefore will not need to be exposed to TDSR. Free up your TDSR for the more important things in life!

Car Rental VS Buying a Car: Free up your TDSR for the more important things in life!
Free up your TDSR for the more important things in life when you lease a car!


4. No Worries About Warranty, Servicing And Maintenance Costs

 

When you purchase a car : You manage your own Warranty, Servicing and Maintenance

After making the hefty down payment when buying a car, you will still need to cover the monthly loan installment payments, regular servicing and maintenance which can cost hundreds per session. Once warranty expires, you have to fork out huge sums of money for car repairs.

 

When you lease : All Warranty, Servicing and Maintenance Covered

When you lease a car, you automatically get coverage for warranty, insurance, roadside assistance, maintenance and road tax. No additional payments are needed and your monthly spending is fixed! Plus, you don’t have to worry about breakdown and repairs!

 

Car Rental VS Buying a Car: Get coverage for warranty, insurance, roadside assistance, maintenance and road tax when you lease a car!
When you lease a car with GC Cars Leasing, your monthly spending is fixed and no additional payments are needed!


5. No need to pay attention to renewals of road tax and insurance

 

When you purchase a car : You manage and pay your own Road Tax and Insurance

And what about the road tax that is due every 6 months as well as yearly insurance renewals for the whole period that you own the car? When you buy a car, all these will be your responsibility to remember to pay them.

 

When you lease : No hassle and payment on renewing Road Tax and Insurance

However, if you lease a car, you will just need to remember to make the monthly rental payment and all other payments will be settled by the leasing company!

 

Car Rental VS Buying a Car: Just Drive and not have to worry about any other payments!
Just drive the car and not have to worry about upkeep of the car!

 

6. No Depreciation Problems

 

When you purchase a car : Worries on Depreciation costs and when you need to get rid of your car

While buying a car is generally cheaper long term, you are tied with the car for 10 years! And its value drops every year (depreciation). Depreciation, the amount of money you lose on a car just by owning it, is usually calculated as an annual figure assuming that the vehicle is deregistered at the end of the 10-year COE lifespan.

If you are savvy and know how and when to sell the car, you may be able to get the best deal but if you are not, you have to go through the hassle of selling the car or handling the depreciation. Or, be tied to the car for 10 years!

Car Rental VS Buying a Car: Don’t have to worry about depreciation when you lease a car!
In Singapore, depreciation costs can easily be $10,000 a year for a brand new car.


7. Flexibility to change your car every 2-3 years

 

When you lease : NO long term commitment.

When you buy a car, you are stuck to it for 10 years! But if you lease a car, you can change it up after a few years (depending on the tenure period of your car rental).

Be it to change to a more luxurious car model, or to change to another Brand New Car, or even to free up your finances, you have that flexibility. You have the choice, no need to commit for 10 years and be stuck with the same car!

Do you want to switch up your car every other year OR every 10 years?

 

Choose to Lease a Brand New Car with GC Cars Leasing at extremely competitive and affordable Car Leasing Deals and you may even qualify for additional incentives and bonuses!

 

Contact us @ 8685 0303 to find out about our affordable Car Leasing Deals and if you qualify for incentives!

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