Singapore is a costly city, especially when it comes to owning and driving a car. The Land Transport Authority is responsible for the high price due to the tax requirement. There is a high tax on buying, registering, and driving a car. The main reason for this tax is to avoid traffic congestion in the city. Therefore, there may be a concern about whether to buy or rent a car. There are pros and cons to each of the sides. It is also essential to take note of the requirements of buying and renting. That way, the consumer can make a substantial financial and social decision.
These are some of the issues to consider if you are to buy a car.
You do not want to repair your car with every slight dent or scratch
You will want to sell your vehicle at any time.
You have the upfront cash to buy a newer or premium car.
You have car preference
Alternatively, if you wish to go for car rentals, you need to understand that;
You will need to repair even minor issues like dents
It is safe if you do not afford a large deposit upfront.
You might get an old car to rent.
There is no domination on car preference
Moreover, you need to consider all the advantages and disadvantages facing both sides.
Car Rentals
In this category, we begin with the advantages. Renting a car is better when you are low on cash to pay upfront since car rentals do not require a large amount of money. Additionally, with rental cars, you can approach your dealer to have an exchange. Exchange is efficient for people who do not need the car daily. One category is the tourist class. Again, some people are only in Singapore for a duration doing some task assigned by their organization. They might not need to purchase a car.
Moreover, the provider will offer you an all-in-one price. In other words, the price you pay for renting the car is inclusive of insurance and maintenance. For specific models, one can save a lot of money since some as low as $60 a day.
Unfortunately, it may be very unnecessary to rent a car on certain occasions. For instance, if you are staying for more than four years, you will realize it is getting more costly to rent a car than owning one. Additionally, if you prefer specific brands with particular mileage, renting a car can be unsatisfactory.
Buying a car
On the other hand, you need to know why to buy a vehicle or not purchase one. Well, purchasing a car is cheap if you intend to stay for more than four years in Singapore. Additionally, you can sell the car if need be. Again, you can sell the vehicle at any price depending on your customer. Still, compared to renting a car, you can purchase according to your preferences and stay with the car for as long as you can. Unfortunately, once you buy a car, you will need to stay with it for as long as you cannot sell it or exchange with a potential customer.
While it seems inviting to buy a car in Singapore, the disadvantages are something to consider. If you do not have a large cash deposit upfront, you cannot purchase your vehicle. Matter of fact, if you do not consider renting a car, you may depend on taxis or use the bus. Additionally, you will need towing fees and maintenance fees. Again, when the car breaks down, you will incur the additional renting costs.
Moreover, you risk depreciation of the car. In five years, you cannot sell the vehicle at the same price you bought at or higher. It can only get lower.
Most importantly, if you wish to go for car rentals, consider how long you are to stay in Singapore. Also, decide if you are to drive daily or not. If you are to stay for more than five years, it is better to purchase a car. If you do not intend to drive daily, a car rental is the best solution.
In conclusion, car rental is more of a short-term solution. If you are taking your family on vacation but do not own a car, Singapore has many car rentals to help you instead of catching the bus.
