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Car Leasing Program


Donut
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Supercharged

Today's ST shows an article on latest leasing program from Prime.

Typical structure is only pay 10% dp, and pay an amount monthly, which includes Insurance, road tax. U drive for 5 years, if u don't like the car, can return to Prime and lease another new car. If u like the car, then can buy it.

ST shared this customer leasing the new Honda Vezel. She paid 10% dp of its price, and monthly payment of $1688, includes insurance and road tax, for 5 years. And I think Prime also covers the regular maintenance.

Is this worth?

I compared this Honda vezel leasing with buying the same car. Monthly payment of Honda vezel after 50% dp is about $1100+, excluding insurance and road tax.

Looks like this leasing Program is workable.

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eh bro.. i am not too sure about leasing.. but $1688 for 5 years you already pay $101k. + initial 10% dp which is around $12k, you already paid $123k for a vezel and you still need to buy the car from them??? $123k u already paid for the full price of the car liao...

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Leasing is for those who don't want to commit to the overall cost (some unpredictable) of car ownership. So they pay a flat monthly fee and get to use a car and don't worry about road tax, insurance, car servicing, repair costs etc.

 

But yes, they do not own the car so whatever they pay is purely consumption costs - which you can also say is not much difference from conventional car ownership (10 year leasehold from govt). It is also similar to concept of renting a house, where you pay monthly for usage and do not ever get closer to owning the house.

 

However, usually they need to commit to a lease period - for example 3 years. The shorter the lease the higher the monthly costs.

 

So far I mainly only see foreign expats using leasing - they know they are committed to being here for X number of years and just get a hassle-free car lease for that same period. I know one leased an old Lexus RX300 for 3k per month, heard of a case of 6k per month for a BMW 640 lease.

 

 

 

 

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Maybe TS can provide a snapshot of the article?

 

Assuming DP 10k,

 

Road tax for Vezel 1.5 ($684/yr) = $3420

 

Insurance (avg $1000/yr) = $5000

 

Servicing (assume $400/yr) = $2000

 

$684+$1000+$400 = $2084/yr ~$173/mth

 

Monthly $1688-$173 = $1515/mth (real leasing price)

 

After 5yrs probably pay another 10-20k to purchase the car on top of what has been paid?

 

hmm... [rolleyes]

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The dp is 10% but also depends on customers credibility. Dp is fully refundable. But the leasing doesnt seem to include servicing. It covers insurance and road tax only.

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Edited by Imamiah
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eh bro.. i am not too sure about leasing.. but $1688 for 5 years you already pay $101k. + initial 10% dp which is around $12k, you already paid $123k for a vezel and you still need to buy the car from them??? $123k u already paid for the full price of the car liao...

You can't exactly calculate that way. $1688 monthly includes road tax and insurance.

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Did you factor in road tax and insurance or not?

 

 

eh bro.. i am not too sure about leasing.. but $1688 for 5 years you already pay $101k. + initial 10% dp which is around $12k, you already paid $123k for a vezel and you still need to buy the car from them??? $123k u already paid for the full price of the car liao...

 

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So did anyone actually contact Prime leasing to find out more details?

 

Please share the info.

 

Thanks!

Support.
While it's somewhat true that in Singapore it's very hard and rare to ever find anything that is in favour of us the "little guy" buyers, but nonetheless this provides an alternative to people who either cannot or do not wish to pay a hefty upfront cost, or do not wish to be bothered with ownership hassles (not so "heart pain" if anything happens to a "leased" car?).

 

Saw similar adverts from some of the ADs as well, even including replacement cars when the leased car is in the workshop for servicing.

 

Hence, would definitely like to know more as well.

 

Thanks also.

 

Edited by efssc
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Today's ST shows an article on latest leasibg program from Prime.

 

Typical structure is only pay 10% dp, and pay an amount monthly, which includes Insurance, road tax. U drive for 5 years, if u don't like the car, can return to Prime and lease another new car. If u like the car, then can buy it.

 

ST shared this customer leasing the new Honda Vezel. She paid 10% dp of its price, and monthly payment of $1688, includes insurance and road tax, for 5 years. And I think Prime also covers the regular maintance.

 

Is this worth?

 

I compared this Honda vezel leasing with buying the same car. Monthly payment of Honda vezel after 50% dp is about $1100+, excluding insurance and road tax.

 

Looks like this leasing Program is workable.

 

Bro, after paying 5 years instalment, the car is yours to drive for another 5. By paying $1515 (real instalment cost) a month to lease the car (without insurance and road tax), by 5 years you would have paid $90,900, which is about $35k less than the outright purchase price.

 

Even if you return the car to them, they can probably scrap it and get back more than $35k (COE refund is already about $30k).

 

Usual trick of the trade, by increasing the monthly outlay by a little, and it looks "affordable" since there's no 50% downpayment, people tend to overlook the real cost.

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cannot compare leasing with purchase ...

 

if leasing company do not make money ... the business is not sustainable ... then it would be Volks Auto liao

 

better take lease from reputable and long establishment company hor

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