More car distributors offering leasing options
14 Aug 2013|9,339 views
In a bid to crank up the demand for new cars, more local distributors are offering leasing options as alternatives to the conventional hire purchase. Car leasing is essentially a long term rental, and can help individuals get around the high initial costs by spreading out the payment into monthly outlays instead.
Premium brands such as BMW, Mercedes-Benz and Porsche have offered manufacturer-backed leasing options. Recently, brands which are carrying smaller cars, such as Volkswagen, MINI, Opel, Kia and Citroen, have also started to vie for a share of the leasing market.
For instance, a Opel GTC which costs $140,000 to purchase will require buyers to put down at least $56,000 as downpayment. Alternatively, the local distributor, Auto Germany, has offered it for a five-year lease at $1,690 per month.
On the other hand, a Kia K3 that retails for $119,000 is available for lease at $1,800 a month for three years, or $1,600 a month for seven years. The lease amount will include the road tax andinsurance of the car. Maintenance is also taken care of, including the tyres, by the local distributor.
However, while leasing has been popular with expatriate and corporate clients, the take up rate among locals is relatively low.
Speaking to The Business Times, Lexus Commercial Director William Choo links the low popularity of leasing options to the costlier monthly outlays, and that drivers do not own the legal rights to their cars even after paying for it.
Lexus has also recently stepped up to offer leasing options to private car owners - where in the past it only did so for leasing companies.
A Kia spokesperson also agreed that ownership plays a strong role in affecting buyers' choice in the Asian market.
However, Opel Director of Sales, David Pang, thinks that motorists need to identify the pros of leasing, and is optimistic that "more mature and sophisticated buyers" will bite the bait.
In a bid to crank up the demand for new cars, more local distributors are offering leasing options as alternatives to the conventional hire purchase. Car leasing is essentially a long term rental, and can help individuals get around the high initial costs by spreading out the payment into monthly outlays instead.
Premium brands such as BMW, Mercedes-Benz and Porsche have offered manufacturer-backed leasing options. Recently, brands which are carrying smaller cars, such as Volkswagen, MINI, Opel, Kia and Citroen, have also started to vie for a share of the leasing market.
For instance, a Opel GTC which costs $140,000 to purchase will require buyers to put down at least $56,000 as downpayment. Alternatively, the local distributor, Auto Germany, has offered it for a five-year lease at $1,690 per month.
On the other hand, a Kia K3 that retails for $119,000 is available for lease at $1,800 a month for three years, or $1,600 a month for seven years. The lease amount will include the road tax andinsurance of the car. Maintenance is also taken care of, including the tyres, by the local distributor.
However, while leasing has been popular with expatriate and corporate clients, the take up rate among locals is relatively low.
Speaking to The Business Times, Lexus Commercial Director William Choo links the low popularity of leasing options to the costlier monthly outlays, and that drivers do not own the legal rights to their cars even after paying for it.
Lexus has also recently stepped up to offer leasing options to private car owners - where in the past it only did so for leasing companies.
A Kia spokesperson also agreed that ownership plays a strong role in affecting buyers' choice in the Asian market.
However, Opel Director of Sales, David Pang, thinks that motorists need to identify the pros of leasing, and is optimistic that "more mature and sophisticated buyers" will bite the bait.
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