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Car leasing in Singapore is a great alternative to buying. But before you sign a contract with the lowest rates, consider these 5 factors.
Category: Miscellaneous Advice
Car leasing is a terrific way to have your own transport for a while without the initial cash outlay of buying one. It's the perfect solution for drivers who only wish to drive for a couple of years but need a long-term car rental alternative.
It's not all unicorns and rainbows, though. With a plethora of car rental companies in Singapore, and an even higher number of packages and deals, it can be tough finding the right lease to own a car.
Before you go signing on the dotted line of a contract with the lowest rates in town, consider these five factors.
1. Insurance excess and collision damage waiver (CDW)
You've probably heard of the terms 'excess' and 'CDW'. But what are they and how does it all work? In a nutshell, insurance excess is the amount you need to pay in the event of an accident. This is the extra payment (excess) that will be imposed on you, the policyholder, if a claim is made against your policy.
CDW, on the other hand, is an add-on option that car leasing companies provide to reduce the amount you're liable for. This usually covers damage costs to the rental car and may include anything from just the bodywork to the entire car's repair costs, depending on your policy.
What to look out for:
Keep an eye out for suspiciously high insurance excess, this could mean that what's stated isn't the total amount you'll have to pay. Rather, it could be split up into 'total', 'own damage', and 'third party damage' excess.
2. What's included in your car leasing package?
Most car leasing companies don't just provide leasing services, they also offer add-ons and other entitlements, but at slightly higher rates. These are typically included in more premium packages if you're willing to shell out a little more money.
What to look out for:
Roadside assistance: Most leasing companies would want you to contact their hotline for roadside assistance (accident recovery, vehicle breakdown, towing services etc) regardless of whether you're a customer or not. The main difference is the cost of these services and how much you, as the driver, are liable for.
Accident repair and claims: Accident recovery, accident reporting, insurance claims, damage repairs.
Servicing and maintenance: Servicing and basic wear and tear maintenance are usually included in most packages. However, damaged parts that aren't considered normal wear and tear and their respective costs may be excluded.
Replacement vehicle: What about a replacement vehicle during servicing or repairs? It might not seem important at first, but going without your ride for a few days, or even a week, could disrupt your daily lifestyle, especially if you need your own transport for work.
Option to change car model mid-lease: Your car needs might change mid-lease, from a sedan to an MPV, for example. Some companies do provide the option of upgrading or switching car models mid-lease, with a top up, of course.