Car Leasing Program

[Super7]

Does the scheme includes petrol huh ?

 

LOL.... also:- replenish tissue paper, parking coupons, air freshers, ERP card top-up??

[Samlimlp]

 

LOL.... also:- replenish tissue paper, parking coupons, air freshers, ERP card top-up??

Lol.....tissue paper.....good one....

[Samlimlp]

Few thing we should not forget about purchasing :

 

1. After 50% down-payment, still need to take bank loan. There is bank interest involved.

 

2. When you own a car, you bear the depreciation cost.

 

3. You need to pay insurance, road tax, servicing, repairs and parts replacements. These should usually be covered in leasing program.

 

Whichever way you look at it, be it your preference is buying or leasing, it's still a lot of money involved, and having a car is never an investment......

[cllq]

Does the scheme includes petrol huh ?

 

wait long long n dream on

[Watwheels]

Why nobody ask LTA whether this complies to the car hire & purchase act?

 

Coz in the past got a number of dealers who chut their own pattern but in the end LTA says it's illegal and many ppl suffer as a result. I would suggest ppl to check with the authorities first whether this is legal before proceeding further.

 

To me there's no easy or cheaper way to get your hands on the car. What the authorities want is for you and me to take public transport and not buy car. Otherwise there won't be so many restrictions. No point asking the dealer who is doing the leasing. For them if anything happens they can always do a "Volks Auto" and leave ppl hanging and broke.

[Mustank]

lease and buy-back scheme is simply a low or no downpayment scheme ...

 

LTA scholars defeated

Does the scheme includes petrol huh ?

 

Bro, you ish most power

[Wildfaye29]

I'm trying to think out loud here.

 

My current MPV bought 5 yrs ago was $87K new. $1 driveaway, 10 year loan (yes i'm cheepo, but I dun like to pay downpayment, use it to generate more income).

 

Monthly instalment is $885.

Monthly road tax (371x2/12) is $62.

Monthly insurance is (1000/12) is $83.

Monthly servicing is (400/12) is $33. (2 yearly oil change and some wear and tear items).

 

Total monthly cost is $1063 ~ round up la, $1100 monthly ok?

 

If the lease is $1400 to $1500 per mth, I think not unreasonable.

 

Savvy?

--------

 

Say Vezel $110K, down $10K.

$100K loan 5 yr @ 2.2%, monthly instalment is $1850. If loan 10 years, monthly is $1016.

 

Using $1016 + 62 +83 +33 = approx $1200, they charge $1400 to $1500.

 

Not unreasonable tio bo?

 

Takes the stress out of ownership.

 

Savvy?

[Forte3737]

Sincere Advise: In a leasing scheme, you do not take ownership of the car. Do your sums properly and its definitely not worth it. If cannot afford to buy a new car, then take either buy second hand or take public transport

[Darryn]

 

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.

As with all things -

 

People that "have money" can afford to take a long term view and do this sort of financial analysis.

Those without the means to make a hefty upfront deposit are left with the lesser option of paying a lease.

 

It is still much much better however that they do this than borrow money on something like a credit card to fund the deposit however...

 

And like all things - there may well be personal financial planning reasons that make this a more sound option.

Sincere Advise: In a leasing scheme, you do not take ownership of the car. Do your sums properly and its definitely not worth it. If cannot afford to buy a new car, then take either buy second hand or take public transport

Not always that simple -

 

What if the car is your entre into a well paying job?

What if you "need" it for personal reasons (getting from work to night classes on a company sponsored course is one reason that springs to mind)

 

Look carefully at your personal situation and make a reasoned judgement with the full understanding that it's not the cheapest option, but may at the same time be the "best" option for your unique circumstances

[Carnoob]

If anyone believe in leasing, then why not choose a cheaper option of leasing an old car? There are many car leasing company around with good and reliable car at half the price. Insurance and road tax are covered too. No need worry about car breaks down as they too provide replacement car. Or car sharing scheme like car clubs drive as you need by paying a membership fee.

 

So what are the pros for leasing new car over old car? At the end, the car still doesn't belong to you.

[Kar_lover]

 

So what are the pros for leasing new car over old car? At the end, the car still doesn't belong to you.

 

Well i guess mainly leasing a new car means you get to drive the current model instead of a 2-generations ago model and can enjoy all the current bells and whistles the latest model offers. From an appearance (read: bragging rights) standpoint, nobody knows its a leased car or a purchased car so you derive the same level of ownership status of having the latest model even though u didn't actually buy it.

 

I think after awhile, whether you bought or leased a car, psychologically it is the same (i.e. you are not constantly aware that the car doesn't belong to you). I had an experience where my car needed 2 weeks to be repaired and i was given a replacement car. After the first few days, i didn't "see" the car as a replacement car - it is a car that, for all intents and purposes, was "mine". The legal ownership status doesn't play in my mind. I will just use it as mine anyway.

[Wt_know]

my take ....

 

if B&B new car ... buy

if B&B used car ... buy ... get those 5+ years old ... annual depreciation should be most optimised already

 

if a maserati or ferrari ... i consider lease

calculate the full operating cost for 1-2 years lease

at least you get the full cost for 1-2 years ... write it off as operating expenditure ...

no risk for holding a million dollar depreciation liability ... and this one truly low or no downpayment ... lol

 

Edited February 3, 2015 by Wt_know

[Weewee1976]

Don't forget if you "buy" the car and sell/scrap it off by the 10th year, you still can get back PARF and COE rebates (if less than 10 years). Conversely, if you lease the car and decided not to purchase it after the x no. of years, you get nothing back.

[Fastfive1]

 

Well i guess mainly leasing a new car means you get to drive the current model instead of a 2-generations ago model and can enjoy all the current bells and whistles the latest model offers. From an appearance (read: bragging rights) standpoint, nobody knows its a leased car or a purchased car so you derive the same level of ownership status of having the latest model even though u didn't actually buy it.

 

I think after awhile, whether you bought or leased a car, psychologically it is the same (i.e. you are not constantly aware that the car doesn't belong to you). I had an experience where my car needed 2 weeks to be repaired and i was given a replacement car. After the first few days, i didn't "see" the car as a replacement car - it is a car that, for all intents and purposes, was "mine". The legal ownership status doesn't play in my mind. I will just use it as mine anyway.

 

People will ask how you managed to get the car right? Then you're gonna "show off" by saying that you got the car on lease? If it's a car that the company leases for you, then that's something you can brag about. Like how your job has more perks than other people.

 

I prefer the old days where the Log Card is a physical card and not the electronic crap you have today. If you(not the bank) legally own the car, you can brag about how the car belongs to you. You have the colored log card to show people.

[Super7]

Bro, you ish most power

 

going to geylang vs committing to marry a wife, leasing vs buying a car, [grin]

[Kar_lover]

 

People will ask how you managed to get the car right? Then you're gonna "show off" by saying that you got the car on lease? If it's a car that the company leases for you, then that's something you can brag about. Like how your job has more perks than other people.

 

I prefer the old days where the Log Card is a physical card and not the electronic crap you have today. If you(not the bank) legally own the car, you can brag about how the car belongs to you. You have the colored log card to show people.

 

Don't know about you, I don't usually ask people how they got their cars :) If ppl ask me i will say i stole it.

 

Anyway i am not talking about supercars or what, could be just the latest hot model like Vezel, Harrier or some BMW, Merc or Audi which are not uncommon in SG. Unless of course i am already KNOWN to be poor among my friends then in which case there would be no bragging rights to begin with.

[Sunset73]

Hi all,

 

Maybe I can give some insights on this. I recently just leased a 1st Gen manual Toyota Vios for 1 year.. for $1500/month.

I know some of you will go: "Wah!! Sibei bo hua leh, might as well buy the car!"

 

But for my situation, is a bit different.

I own a Kia Carens 2007, currently driven by my brother for his sales job.

My company recently needed me to travel around different job sites to perform my job all over Singapore and sometimes Malaysia.

They are paying me $1500 per month for my travel expenses.

 

If I buy a similar car with COE left 1 year, might cost me about 15k. Pay in full cash including insurance and road tax will add up to about 17k. Leasing will cost me 18k.

 

If I own the car, I need to pay for my own maintenance and you know old cars are generally.... "dangerous" in this field. What if I get a lemon? The car will cost me more than the upfront 17k. Of course, on 1 hand, I get back a parf value of about 6k? What happens if my brother suddenly throw the carens back to me? I will die from paying for both cars.

 

If I lease a car, at least it's a peace of mind. For my job, I can't expect any downtime on my vehicle as I need it to support my work.

Car lease companies will make sure they get you a working vehicle. If it breaks down, I will get a replacement vehicle for me to continue my work. No more worries about forgetting to renew road tax insurance and taking time off for servicing.

 

Thoughts from a car leasing supporter

[Super7]

Slightly OT:-

 

Wonder if any leasing company offers rotation of different models if the customer signs a 5-year lease ie he gets to drive different models say every 6 months or so under the same lease? Good for customers who like to 'taste' different models