The Freedom and Prospects of Car Leasing

Among men, driving a car is some of the most exciting experiences. Imagine how much more exciting it is when you get to change ride every so often.

And this it seems is one of the major reasons for the growing appeal of car rentals.  The logic is simple enough. With a brand new car, a buyer is often stuck paying for the car for 4-5 years which means they buyer is also practically stuck with that car within that period. With rentals however, a person can change the unit as often as he or she wants to within the lease contract period. In other words, even for short-term rental, which is somewhere between a week to a month, a customer may opt to change unit.

The Practicality of Short-term Financial Obligations

And that was true in my case. My first try was actually a short term car rental. I rented a Toyota Sedan for a week when I was busy running to and from Singapore’s Watercove area to the City proper showing a series of foreign business partners. It was then that I immediately realized the benefits. I also immediately decided to optimize these benefits by arranging for a long-term lease of 9 months if only to test if my assumptions and calculations were true. 

And it was indeed as I expected. Even more. First, the numbers were significantly different. Since it was a long-term rental, I paid monthly rates within the duration of the lease contract monthly amortization, which was 9 months. But even if the lease rates were computed per day, it was still 25% less than average amortization for brand new car of the same brand and model.

And despite being a long-term lease, which meant extended rental periods, it was still shorter than the average 4-5 years to pay for brand new cars. Which meant I did not have to worry about interest rates over extended periods. After just under a year, I was already free of my obligation and I had a choice to buy the car or lease another one.

Maintenance, Choice and Other Upside

I was also not hassled but the stress of thinking about interest rates over time. But the biggest upside is the surprisingly minimal maintenance cost. Since it was a 2^nd hand car, I was half-expecting that I would need to bring it to a shop every month for tuning.  Surprisingly however, I only had to bring my leased unit thrice in 9 months. As I discovered, Singapore car leasing companies have very good maintenance protocols and technologies and therefore their 2^nd hand cars are well maintained.

And that was when it became more advantageous and even exciting for me. I realized that under rental or leasing scheme, I could change cars very quickly and it did not matter why. Whether for technical considerations, malfunction or simple personal convenience or preference, it was simply legal to change car unit at customer’s decision.  In other words, I can opt to try European car rentals to satisfy my need for speed or Japanese 4wd if I so choose burly and rough look. Of course, changing cars very so often sound just too exaggerated. But then, after my experience in car rental and lease in Singapore, it is almost a realistic prospect.