While the public transport system here is great, if you need to ferry kids to school, then school buses and taxis can end up costing more than if you buy or lease a car in Singapore. The convenience aspect of public transport also depends on where you live and your proximity to MRT stations and bus lines.
Should you buy or lease a car in Singapore?
As you probably know by now, cars in Singapore are very expensive. This is mainly because of the COE (Certificate of Entitlement), which was set up for a few reasons, primarily for keeping the roads from getting too congested. The COE itself is fairly complicated, especially when it comes to buying and selling a car.
Because of this – and especially as some of you won’t know how long you’re likely to be living here – you may want to lease a car in Singapore instead. It’s a lot easier, risk-free and often not more expensive than buying. Plus, when you buy a car you need to make a hefty downpayment which some of us don’t have!
What’s involved if you want to lease a car?
The team from Tokyo Century Leasing answers some key questions.
#1 How long is a lease normally? What’s the minimum and maximum amount of years?
The minimum lease period for a brand new vehicle is 24 months. Meanwhile, we also can provide a minimum of 12 months lease for vehicles that are currently on our fleet.
#2 Are monthly payments lower for a longer lease?
Yes, monthly payments are generally lower for longer lease terms. By opting for a longer lease, the overall cost is spread over a greater number of months.
#3 What will I need to lease a car in Singapore?
- Copy of passport with photo
- Copy of front and backside of the Employment Pass or IC
- Copy of driver’s licence
- Letter of employment stating salary, term and allowances
- Full residential address in Singapore
#4 What kind of licence do I need? Does it have to be a Singapore driver’s licence?
Foreigners who are staying in Singapore for less than 12 months must produce a valid foreign driving licence and an International Driving Permit (IDP). Those staying 12 months or more need to take the Singapore Basic Theory Test (BTT) to convert their foreign driving licence to a Singapore driving licence.
#5 Terminating the car lease early – how are payments or penalties calculated?
Here is one example:
Customer A signed up for a 36-month contract with a monthly rental of $3,000 but only fulfilled 30 months. The penalty will be the remaining 6 months’ payments. Penalty: $3,000 x 6 months = $18,000
However, to avoid penalties, Customer A can find someone to take over the contract. The new person will be responsible for the remaining 6 months.
If you’re not sure how long you’ll be here, the customer can discuss their situation beforehand, and our sales representative will advise on possible solutions.
#6 Can the customer buy the vehicle at the end of the lease?
No, customers cannot buy the vehicle at the end of the lease.
#7 Is there an excess mileage charge? Can you drive into Malaysia?
There’s no limit to your driving in terms of the mileage, and your leased car can also be driven to Malaysia. We offer 24/7 roadside assistance, and also have a close network of workshop partners in Malaysia who can support any unforeseen car issues or break-downs.
Final word
As you can see from this overview on why and how to lease a car in Singapore, there are many benefits to leasing. You can get a replacement vehicle while yours is being serviced, you don’t have to worry about selling the car once your lease is up – and you also won’t have the added stress of working out where to buy a car that’s reliable, especially if it’s second-hand. Plus, there’s no need to worry about road tax, insurance quotes and so on.
Written in collaboration with Tokyo Century Leasing (Singapore) Pte Ltd, a provider of leasing and financing solutions, supporting businesses in Singapore and across the Asia-Pacific region. As part of Tokyo Century Corporation, they offer a wide range of tailored financial solutions. Their car leasing services provide flexible and cost-effective options for both businesses and individuals, for single vehicles or an entire fleet.
For more information, contact 6220 8751 or email info-autolease@tcls.com.sg
tcls.com.sg/car
#09-04/05 Manulife Tower, 8 Cross Street
