Pros and cons of leasing versus buying a car in Singapore

If you’re heading to Singapore on assignment and must have a car, it’s worthwhile considering leasing rather than buying.

Singapore regularly tops the ‘most expensive city’ lists, with the price of everything including a new car seemingly soaring year on year. For most working expat professionals, a car is a necessity rather than a preference, but the costs of buying, maintaining, insuring and running a personal vehicle are eye-watering.

It all starts with a significant down payment, along with your pricey certificate of entitlement and continues through road tax and insurance until essential maintenance and parts replacement sets in. By this time, you’re considering whether walking to work would be as good for your health as it would be for your wallet! Leasing is budget friendly right from the start, and the future won’t hold unpleasant shocks such as the cost of emergency repairs as well as basic maintenance and hikes in insurance and road tax.

Adding it all up and comparing total costs of the above with monthly leasing payments including 24-hour roadside assistance and a temporary replacement might well show that leasing makes more financial and peace-of-mind-related sense than buying. Leasing can also be a sensible solution for female expats who can’t tell one end of the vehicle from the other and have no intention of learning!

Another issue to consider is depreciation, with estimates worldwide averaging around 20 per cent per year of the original price. Trading in or re-selling can also be a nightmare and takes a good deal of effort and time, whilst leasing, provided you’ve looked after the vehicle as required, is as straightforward as returning the car and walking away.

For those for whom the latest model with its bells, whistles and technological advances is a must-have, please do remember this is Singapore and there’s invariably a lengthy waiting list for hot new models. When your lease contract expires, you can happily move on to a brand-new, upscale model on the same day. When all’s said and done, especially if you’re on a shorter-term contract, leasing a car might well be your best option.