Pros of Leasing a Car vs Buying in this sky high COE environment (UPDATED 2023)

Flexibility to enter the market when COE drops

COE prices are rising at an astonishing rate and now with the COE cycle already irrelevant due to the COVID period. COE prices are now more than ever unpredictable. When COE are still highly unpredictable, you can’t time the best buy and so why do you want to buy a car when the next moment it might be dropping or staying stagnant?

Why Lease: Leasing a car gives you the flexibility to put off buying a car till COE drops and allows you to time in correctly.


Avoid any difficulties to resell

Leasing a car can be a smart choice for individuals and businesses in Singapore who need a vehicle but don’t want to commit to the high cost of ownership. You are stuck with it for 10 years, unless you sell it. But selling a car with a huge price tag due to the high COE prices, will there be buyers who want it?

Why Lease: Once your contract comes to the end, just choose to renew it or terminate it. Easy.


Say no to Opportunity Costs

With such a huge price tag, your downpayment will definitely be a substantial amount. Instead of using up all your cash for just a car, it may be better to use this cash for other important things, like paying for your mortgage or your family’s holiday trip. After all, you have limited time with your kids before they grow up.

Why Lease: Leasing a car in Singapore involves a much lower upfront cost than buying a car. When you lease a car, you only pay a monthly fee that covers everything from the car’s depreciation, wear and tear, servicing, maintenance, road tax insurance etc. This means more trips, to further destinations, and more quality time with your family.


Test it out first before going all in

If this is the first time you are getting a car, start with leasing as a teaser to what really entails owning your own car. With comfort and convenience also comes the hassle and mental stress should you ever get into an accident or breakdown situation, which experienced drivers should know of very well.

Why Lease: Apart from the middleman, the leasing company, covering all liaising with workshops, road tax payments and many more errands for you, you can simply terminate the contract once it has ended. No need to resell it and thereby saving time and money needed to maintain its look and fetch a higher price.


Middleman available at no additional cost to settle all hassles

When you buy a car, you are responsible for all maintenance and repairs, which can be a hassle, costly and time-consuming. When you lease a car, the leasing company is your own personal assistant with matters pertaining to your car. In addition, you can avoid dealing with many unscrupulous servicing companies – not all servicing companies but there are definitely quite a few in Singapore. In addition, servicing companies chosen by leasing companies will also mean more reliability in your car’s performance.

Why Lease: You have a Personal Assistant and car guru to handle and answer all car related matters and enquiries for you.


Upgrade to a Brand New Car in just a few years, or months!

Definitely not forgetting, leasing a car means you get to upgrade to a newer and better car more frequently. We are talking about every 6 months, or 1 – 2 years depending on how fast you want to change it. No downtime to sell the car if you bought one. Plus, this can be particularly attractive for businesses that need to maintain a modern and professional fleet of vehicles.

In conclusion, leasing a car in Singapore can be a smart choice for individuals and businesses who want to enjoy the benefits of owning a car without the high cost and commitment of ownership. With lower upfront costs, more flexibility, no opportunity costs to suffer, and a Personal Assistant to handle your car related matters, leasing can definitely let you gain much more convenience and comfort over buying a car on your own.

Whether you are a busy professional, a small business owner, or simply looking for a more affordable way to get around Singapore, leasing a car can be a great option to consider.

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