Debunking 6 Myths About Car Leasing

For many in Singapore, the concept of car leasing might still feel foreign.

Even though it's a well-known practice globally, it remains relatively new to the average Singaporean.

If you've heard about car leasing but are unsure due to some common myths, this article aims to set the record straight.

Let's bust these misconceptions and see why car leasing could be a fantastic option for you.

Misconception 1: Only Old and Worn-Out Cars Are Available for Leasing

Some people mistakenly think that leasing means settling for old, used cars in poor condition.

This is far from the truth.

Car leasing companies often provide a range of vehicles, including brand-new models.

You can enjoy driving a new car without the hefty purchase price, even with the high COE costs in Singapore.

Depending on your budget, you can also opt for luxury cars, allowing you to drive in comfort and style without a significant financial outlay.

Misconception 2: Leasing Services Come with Hidden Fees

There’s a misconception that leasing comes with hidden fees that can catch you off guard.

In reality, when you sign a leasing contract, all costs are clearly stated and legally binding.

Leasing covers maintenance, repairs, road tax, and insurance, so there are no unexpected expenses.

You just need to make your agreed monthly payments.

Conversely, owning a car means you must be prepared for unpredictable and potentially expensive repairs, which can be much less predictable than the fixed costs associated with leasing.

Misconception 3: Leasing Has Too Many Restrictions

While short-term rentals or car-sharing services often have numerous limitations, car leasing offers much more flexibility.

Most leasing companies do not impose mileage or usage restrictions, and you can often take your leased car on road trips to Malaysia.

You can also add additional drivers to your lease, allowing family members to use the car legally.

At the end of the leasing period, you can easily switch to a new model without the hassle of selling or trading in a car.

Misconception 4: Buying a Car is Always Better than Leasing

It’s tempting to compare the cost of owning a car versus leasing one by looking at depreciation, insurance, and road tax against a leasing subscription fee.

However, this comparison falls short because most leasing packages include maintenance, repairs, and value-added services like roadside assistance.

Many leasing providers offer support if you get into an accident and even provide a replacement vehicle during extended repairs.

This level of service and convenience should be a crucial factor in your decision-making process.

Unlike purchasing a car, leasing typically requires a lower initial deposit, sometimes no down payment at all, freeing up your funds for other investments.

Additionally, leasing does not affect your Total Debt Servicing Ratio, which is particularly useful if your income is irregular.

Misconception 5: Car Leasing is Only for Corporate Fleets

Car leasing often brings to mind images of corporate fleets and commercial vehicles.

However, leasing isn’t just for businesses.

It’s a flexible option that can suit individual drivers from all walks of life.

Personal car leasing offers the same comprehensive concierge service as corporate leasing, including tracking and scheduling maintenance.

For busy individuals who don’t want to hassle with car upkeep, leasing provides a convenient, worry-free solution.

You just drive, and the leasing company handles everything else.

Misconception 6: Leasing is for Those with Bad Credit or Poor Finances

There’s a stereotype that leasing is only for those with bad credit or who can't afford to buy a car.

This couldn’t be further from the truth.

Leasing companies do conduct credit checks, and the leasing process is entirely legitimate and transparent.

The primary appeal of leasing is the hassle-free experience it offers.

You pay a fixed monthly fee, and the leasing company takes care of everything else, from maintenance to repairs.

It’s a premium, worry-free way to enjoy driving without the responsibilities of ownership.

Conclusion

Car leasing offers numerous benefits that can make it a better choice for many drivers, providing flexibility, convenience, and often significant cost savings.

By debunking these common myths, you can make a more informed decision about whether leasing is right for you.

Writer's note: Images are purely fictional; for illustration only.