Zero downpayment

[Zacxaviqer]

I was browsing through some of the ads in sgcarmart and realised that there are some cars that required zero downpayment.

 

How does that works?

 

How abt the flexible loan package that they offer? Meaning they can loan 100% as well?

 

Does that violate any MAS rules?

[Carnoob]

It is called hybrid leasing... google and search.

[Zacxaviqer]

I tried googling... Info not very useful though...

 

From what I have read, hybrid leasing is abt securing loans that is above the MAS ruling of 50% or 60% of the total cost of the car (Potentially 100% loan hence zero downpayment)?

 

Correct?

[Watwheels]

https://www.drive.sg/blog/what-is-hybrid-leasing-popular

 

On 25th Feb 2013, MAS imposed strict financing requirements on motor vehicle loans in Singapore. Motorists like you are finding it hard to own or lease a car. Many of our partners have come up with new types of car leasing schemes and we call them Hybrid Leasing.

The dominant players in this new-style leasing programs are Auto Germany (Opel), Alpine Car Rental (Chevrolet), Republic Auto (Pre-owned Mercedes) and Roset Limousine (All Major Make & Model).

The key benefits are:

1. No outrageous 40-50% deposit for the lease of a brand new/pre-owned car (required when you buy a car on a hire-purchase scheme).
2. Flexibility to include (or exclude) car insurance, road-tax, servicing, and other major car expenses in lease price (uncommon for the traditional schemes).
3. This scheme ignores your personal financial leveraging (Total Debt Servicing Ratio) which can prevent some individuals from taking up a bank loan to buy a car.
4. The vehicle could potentially be yours at the end of the leases (which rarely happens with traditional car leasing).

Being a combination program, Hybrid Leasing takes on the pros and cons of traditional car leasing and hire-purchase schemes.

So, on the flip side:

1. For prospective car buyers, it may shock you to know that after paying close to the retail price of the car, you will not own the car at the end of the lease. [Roset Limousine offers a buyback at a nominal charge. Call Drive.SG to find out more.]
2. For those who are looking for new car lease, the new Hybrid Lease may not come with all the usual perks of car leasing that you are used to. E.g. you might not have breakdown assist, courtesy car during breakdown/servicing, car insurance or road tax in your Hybrid Lease package.
3. Since Hybrid Leasing schemes are in their infancy, they vary greatly from company to company. It makes comparison between offers really hard.
4. Since the idea Hybrid Leasing originated from car sellers (those that were smart enough to circumvent the new MAS ruling), the scheme is naturally geared towards prospective car buyers. In any case, this presents a new opportunity for car owners to enjoy the amazing hassle-free experience car leasing experience and a (arguably) more economical alternative for traditional car lessee.

 

[Lowrider]

(N.B. We do not mean Hybrid as in Hybrid Electric/Natural Gas cars. We mean Hybrid as in a combination of traditional car leasing and hire-purchase schemes.)

On 25th Feb 2013, MAS imposed strict financing requirements on motor vehicle loans in Singapore. Motorists like you are finding it hard to own or lease a car. Many of our partners have come up with new types of car leasing schemes and we call them Hybrid Leasing.

The dominant players in this new-style leasing programs are Auto Germany (Opel), Alpine Car Rental (Chevrolet), Republic Auto (Pre-owned Mercedes) and Roset Limousine (All Major Make & Model).

The key benefits are:

1. No outrageous 40-50% deposit for the lease of a brand new/pre-owned car (required when you buy a car on a hire-purchase scheme).
2. Flexibility to include (or exclude) car insurance, road-tax, servicing, and other major car expenses in lease price (uncommon for the traditional schemes).
3. This scheme ignores your personal financial leveraging (Total Debt Servicing Ratio) which can prevent some individuals from taking up a bank loan to buy a car.
4. The vehicle could potentially be yours at the end of the leases (which rarely happens with traditional car leasing).

Being a combination program, Hybrid Leasing takes on the pros and cons of traditional car leasing and hire-purchase schemes.

So, on the flip side:

1. For prospective car buyers, it may shock you to know that after paying close to the retail price of the car, you will not own the car at the end of the lease. [Roset Limousine offers a buyback at a nominal charge. Call Drive.SG to find out more.]
2. For those who are looking for new car lease, the new Hybrid Lease may not come with all the usual perks of car leasing that you are used to. E.g. you might not have breakdown assist, courtesy car during breakdown/servicing, car insurance or road tax in your Hybrid Lease package.
3. Since Hybrid Leasing schemes are in their infancy, they vary greatly from company to company. It makes comparison between offers really hard.
4. Since the idea Hybrid Leasing originated from car sellers (those that were smart enough to circumvent the new MAS ruling), the scheme is naturally geared towards prospective car buyers. In any case, this presents a new opportunity for car owners to enjoy the amazing hassle-free experience car leasing experience and a (arguably) more economical alternative for traditional car lessee.

extracted from: drive.sg

 

[Watwheels]

I think the confusing part is the terms & condition that varies between dealers. They are the ones who come up with the T&C which makes it difficult to do any comparison. Ppl will most likely be looking at a wall of text and have no big picture to look at. Potential customers will just end up scratching their heads and drop the idea altogether.

[Zacxaviqer]

What are the terms and conditions?

 

As in the loan amt therefore some offer zero downpayment while some offer up to 90% of the loan amt?

 

So how does hybrid leasing works in order not to violate MAS ruling.

 

Let's say I loan 90% from this hybrid leasing scheme.

 

I will pay 90% of the car price to the dealer (thus satisfying the 50% or 60% of the car price as stipulated by MAS) and I will loan the other 10% from the normal banks or fork out my own money?

Edited February 11, 2015 by Zacxaviqer

[Sunset73]

What are the terms and conditions?

 

As in the loan amt therefore some offer zero downpayment while some offer up to 90% of the loan amt?

 

So how does hybrid leasing works in order not to violate MAS ruling.

 

Let's say I loan 90% from this hybrid leasing scheme.

 

I will pay 90% of the car price to the dealer (thus satisfying the 50% or 60% of the car price as stipulated by MAS) and I will loan the other 10% from the normal banks or fork out my own money?

 

From what I know, hybrid leasing is exactly like traditional leasing minus a few "perks".

 

Traditional Leasing:

 

Higher fixed cost per month

Road Tax included

Insurance included

Maintenance included

Courtesy Car when servicing/breakdown

Car owned by leasing company

No option to purchase from leasing company at end of lease term

Low deposit depending on length of lease

 

Hybrid Leasing:

 

Lower fixed cost per month

Road Tax Optional

Insurance Optional

Maintenance Optional

NO courtesy car

Car owned by leasing company

May be able to purchase from leasing company at end of lease term

Low deposit depending on length of lease

 

Optional means you can include for a higher cost per month, or exclude for a lower.

 

Deposit usually goes like this:

 

1 year lease = 1 month deposit + 1 month instalment

2 year lease = 2 month deposit + 1 month instalment etc.

 

There is usually a minimum of 3 years for new cars leasing. Used cars usually minimum of 1 year, but also dependant on what makes.

Used continental may have a minimum lease period also.

 

In both cases, you do not own the car. But because of the high cost per month coupled with traditional leasing,

many people go for hybrid leasing.

 

In hybrid leasing, it feels like you own the car because you pay for your own road tax/insurance/maintenance.. and you might be able to buy the car over from the leasing company.. if they have such a clause.

 

Hope this helps

Edited February 12, 2015 by Sunset73

[Sunset73]

What are the terms and conditions?

 

As in the loan amt therefore some offer zero downpayment while some offer up to 90% of the loan amt?

 

So how does hybrid leasing works in order not to violate MAS ruling.

 

Let's say I loan 90% from this hybrid leasing scheme.

 

I will pay 90% of the car price to the dealer (thus satisfying the 50% or 60% of the car price as stipulated by MAS) and I will loan the other 10% from the normal banks or fork out my own money?

 

As for the 0% downpayment as advertised, I have heard some people discussing about it.

It could be:

 

Dealer loan you up to 60% on hire-purchase. 40% personal loan?

 

Not sure if this is true or not..

[Wt_know]

buy is buy

lease is lease

no point to lease then buy ...

don't talk about 10 years coe that everyone does not own the car

ownership is another discussion all together

 

lease then buy is simply to circumvent downpayment ...

Edited February 12, 2015 by Wt_know

[Ake109]

Very easy lah. Just think of it as CAR RENTAL.

 

The company owns the car. The car is registered in their name. You cannot pay they take back the car and sue you for whatever the contract says you otang them for breaking the terms.

[sgkmazda]

Hi is there  a company doing HYbrid leasing name pls ? if offer is good can consider 

[coldastone17]

Very easy lah. Just think of it as CAR RENTAL.

 

The company owns the car. The car is registered in their name. You cannot pay they take back the car and sue you for whatever the contract says you otang them for breaking the terms.

Simply put..tks