For the fourth year in a row, Singapore is again crowned the most expensive city for expatriates to live in. With cars being an expensive luxury yet a necessity – especially for expats living with their family – the car purchasing dilemma is never-ending. Topping off with the high costs of living in the country, leasing a car seems to be a more feasible option that expats should take into consideration.
Here’s why expats benefit from leasing:
- No Ownership Risks
For expats that are only staying in the country for a limited period of time, it is impractical to purchase their own car. Choosing to lease a car allows them to select a suitable lease period that works for them. This also eliminates all ownership risks as expats do not have to worry about trading or selling their cars at a loss due to depreciation, allowing them to leave the country with a peace of mind.
- Save on costs.
The hefty costs of owning a private car is attributed to a multitude of things like the high COE (Certificate of Entitlement) prices, down payment and overwhelming number of taxes levied (taxes on purchase, registration taxes, etc). These can be swiftly avoided by making the choice of leasing a car instead.
When leasing, expats pay a significant lesser upfront payment as deposit as compared to the down payment required to purchase a car. Not to mention, the deposit is 100% refundable at the end of the lease term. Moreover, the cost of road tax, insurance, regular service maintenance is already included in the monthly rental rate. In addition to this, many companies that expats work at offer to pay for their monthly lease (they require the cars to be leased in order for transport costs to be claimed.)
- Save the trouble.
By leasing, there is significantly less stress for expats over car maintenance issues. In the case of vehicle break down or accidents, they no longer experience headaches over issues on repairs. The leasing company would always provide timely assistance to resolve them and manage all matters pertaining to their vehicle. This is especially beneficial for expats that may be too busy with work to deal with these minor issues, or simply not familiar with the country to find a good local car repair workshop.
- Be spoilt for choice.
Buying a car means that one is locked down by the same car several years down the road. Leasing, however, allows expats to indulge in luxury models during their stay in Singapore. They are able to renew their experience with a new car every few years, with the rare opportunity of exploring and driving various high-end and latest models. This is definitely impossible for expats that decide to buy a car, as they cannot afford to constantly re-purchase high-end cars.
In conclusion, taking into account the conditions like period of stay, budget and convenience, the benefits of leasing a car far outweighs the costs of buying one. Not only does leasing minimises the cost, it is also more flexible and easy to deal with, especially for expats with schedules that are packed.