Why do people choose to buy than lease
Choice of car
– You can choose whatever car you want to drive when you buy. There are many models that leasing companies do not own in their inventory for rental.
“Zhng” your car
– Matt black paintwork, 20 inch rims and an exhaust pipe big enough to fit in a baseball, you can do it all when you are the owner of the car.
Lower costs
– Buying a car is almost always cheaper than leasing. We do a quick comparison if buying or leasing a car for private-hire in Singapore is better.
Why some people choose to lease than buy
Downpayment
– When you purchase a car, you need to downpay between 10% to 50% of the car price. You will have to set aside a sum of money for the cost of commercial insurance, road tax, maintenance and repairs. With leasing, drivers only need to place a deposit of $500 and they can drive off a car on the same day.
Flexibility to return car anytime
– Want to try out if driving private-hire is for you first before deciding? Then rent a car. Car rental contract goes as short as 1 month and you can return anytime after your contract ends.
Worry-free
– Most leasing companies provide unlimited mileage maintenance and repair. Some may even provide you with a replacement vehicle when your car breakdown so that you can continue to ‘chiong’ for your private-hire earnings.
Cost of buying a car vs Cost of Renting a Car
There are many costs associated with buying a car. The main costs include depreciation of the vehicle, road tax, maintenance and commercial insurance.
Cost of buying a Toyota Altis 1.6A.
Leasing – The average cost of leasing a Toyota Altis now is $60/day and up to $21900 per annum. Private-hire Drivers who lease do not have to bear the cost of depreciation, road tax, insurance and maintenance.
Considerations to buy or lease a car for private-hire
Downpayment and cash flow
– Do you have the downpayment for the car and are you prepared to set aside money for running costs like commercial insurance, road tax, maintenance and repairs. Are you prepared to let your downpayment sit there and get back only when you sell/scrap the car?
Getting commercial insurance for your car? Say more when you buy with our commercial insurance partner here.
How much you drive
– The heavier the usage, the greater amount of maintenance and repairs is expected. If you drive 10,000km a month, be prepared to standby more money to repair and maintain your car as your parts would wear much faster. You should also be prepared to get a lower resale value when you decide to sell off your car due to the high mileage.
Downpayment and cash flow
– Do you have the downpayment for the car and are you prepared to set aside money for running costs like commercial insurance, road tax, maintenance and repairs. Are you prepared to let your downpayment sit there and get back only when you sell/scrap the car?
Getting commercial insurance for your car? Save more when you buy with our commercial insurance partner here.
Repairs and reinstatement cost
– When you return a leased vehicle, you are to ensure that when you return the car, it is in the same physical conditions less fair wear and tear. Car reinstatements and repairs can be costly, especially if the works are carried out by the leasing company. Your deposit might not even be sufficient to bear the cost of reinstatements. Some of the private-hire drivers can share with you their experience of hefty reinstatement cost with some big rental companies.
