Deciding to own a vehicle is a very personal decision. There are a number of factors that must be considered before you decide which is best for you.
Cost and ownership
If you choose to buy a car, usually you will pay an advance and pay the rest through monthly instalments. It is only rarely that someone pays upfront for a vehicle. Most would resort to borrowing part of the payment from a bank or pay through a loaning scheme. Usually the instalments paid when you buy a car are higher than when you lease a car. The buyer is able to use the car once an advance has been paid. At the end of all the payments you have full ownership of the vehicle.
In a leasing scheme the leasee earns the right to use the vehicle once the first instalment is paid. There may or may not be an advance payment depending on the contract you agree to. The option of short term car leasing and long term car leasing is available depending on your need. Usually a vehicle lease is granted for a period of two to four years. Once the lease expires the vehicle must be returned to the leaser. Sometimes you are offered the option of buying the car at the end of your lease, but most people simply change vehicles at the end of the lease. On the long run this is a more costly option compared to buying a car upfront.
Do not confuse renting with leasing. You can go for a short term car rental in Singapore when you need a car only for a few hours or days or months. But this is the most expensive option of all.
When you buy a car you may or may not choose to repair the dent in the bumper or fix the scratch on your door. However, when you are in a lease agreement it is mandatory that you fix every little scratch that appears on the vehicle while it was in your custody. If not depending on the terms of your agreement you will have to pay a heavy fine.
In both instances the user is responsible for getting a suitable insurance scheme. The rates quoted for a vehicle that is leased is not any different to rates quoted if you owned the vehicle. This may give you the impression that the insurance company does not need to know when your vehicle is leased, but this is not the case. During certain official matters the insurance company needs to know the owner of the vehicle rather than the leasee. Thus this fact should be very clearly mentioned when you buy the policy.
Essentially leasing is an attractive option for those who like to keep up with the latest trends or don’t have the necessary funds to buy a vehicle. Buying is a better option for those who are content with one vehicle. The most suitable option for you will depend solely on your needs.