Finance

Jan 19 2017

Car Leasing Singapore – Long Term Car Rental with #rv #rentals #canada


#car rental singapore
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New to Car Leasing?

When you lease a car, the car is yours to drive and operate – as you would if you were to buy a car. The key differences between the two are the ownership and maintenance of the vehicle.

When you buy a car with cash, you own it. (In Singapore though, most drivers buy a car on a hire-purchase bank scheme. In actuality then, the bank owns it until you pay off the loan!) When it comes to car leasing, the car leasing company owns the car you drive.

(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.

There are more than 135 car rental / leasing companies in Singapore. Each of them offering a wider variety of models and car services that caters to different needs. At Drive.SG, we spend a good deal of time helping businesses and consumers find the perfect car for their needs. Our customers often tell us that car leasing is one of the most difficult and painful decisions they have to make. We usually share this guide with them in hopes that the process can be enjoyable (and not painful)!

Compared to buying a car, there are significantly more choices for drivers like you. Even though there are more choices, the car leasing process is actually quite straight forward since the leasing rates usually includes all the necessary expenses that comes maintaining a car.

It is important to know the purpose of your car lease. Is it for a company or for your individual needs? If it is for business purposes, then perhaps you would like a mid-sized sedan capable of ferrying clients to and fro destinations.

What’s your comfortable budget?

Breakdowns?

We provide all maintenance services for any breakdown situations. However, as is provided in all our cars, a spare tire and other equipment are available in the boot. If it is currently not within the best time frame, you may wish to replace the tire on your own, or wait for our technicians to arrive to rectify the problem. Tire punctures are considered minor accidents and most car companies will not repair it. You can call the car company for assistance but they may charge a nominal fee or go to a gas station for assistance.

Accidents?

First off, do not panic. Next, call one of our 24-hour operators for advice and action to take next. Do not admit guilt or exchange particulars. Call your leasing company immediately for advice. If there are any injuries, call for an ambulance. Do not move the car or admit guilt.

Declare the damage and the extent of the damage when you return the car and we will follow-up with the course of action from there. Be advised that a portion of your security deposit may be forfeited to maintain the car. You may have to pay for the ‘loss of future use of car’ because the businesses cannot rent or sell the car you have leased anymore.

Call the respective car leasing companies up for direct assistance at their websites. If all else fails, you can call our 24 hour-service operators at 6655-7701 during office hours or 9673-3344 after office hours for assistance.

The termination clause will be based on our partner’s Terms & Conditions. General practices will be, forfeiting the security deposit or maximum value in the remaining period. There are diplomatic clauses which you can choose to return the car after a certain time period of leasing.

When signing a lease, always ensure that the model number, license number and configurations are as the car that you have requested for. Also check if there are any defects or damage found in and around the car. Ensure that the handover process is done properly and drive on!

Car Rental – The act of borrowing a car from a company for a period of time.

Car leasing – The act of borrowing a car from a company for a long period of time (typically 6 months or more)

2+1 – Used to measure upfront payment and the security deposit required to lease a car. The first number represents the upfront payment and the second number represents the security deposit required. The numbers usually mean in terms of months.

Security deposit – The amount of money held in hold up when you lease or rent a car. It is returned upon retrieval of the car by the company from you.

Entry to Malaysia – The minimum amount of money that is required for payment before coverage by the insurance. For example, if you have an insurance excess cost of $2000, the insurance company will only cover all costs above $2000. The client pays the initial $2000 or less.

Collision damage waiver (reduces insurance excess) – A type of waiver that reduces Insurance Excesses.

Before you travel to Malaysia, you have to make sure that there is insurance coverage by your respective leasing company and ad hoc insurance. Call up your rental company to make sure that these are in place. Since you are unfamiliar with Malaysian roads, please park in well-lit areas and do not stray into dark alleys. Alternatively, you can also inform us of your travel so we may be ready to assist whenever necessary.

Under our car leasing scheme, our insurance coverage only covers a car up to West Malaysia. You are strongly advised not to use the leased car to drive into Thailand. Check for your leasing company’s policy on this.

Depending on the offence, you will be receive it within 2 weeks through mail, or 1 week if you check for the records online. Not to worry, the payment grace period starts from the date that you have received the physical mail. If you receive a fine in Malaysia, expect to see the fine about 2 months later.

The person who was driving at the moment of time will be liable for breaking the traffic code. However you may receive additional fines from the partner company if he or she is not the named driver as was signed in the contract.

No, the cost of leasing the car has already factored in all the required annual taxes for your convenience. However, it may be an optional option for hybrid leasing.

The leasing company will check for your availability for the scheduled maintenance. A replacement car will be provided during the maintenance period.

Singapore has in place many different fees in place for cars. Below is a list.

Registration Fees – Basic administrative fees of $140

Goods & Services Tax (7% GST on Excise Duty + OMV) – A form of consumption tax that is imposed based on the value of goods.

Excise Duty (20% of OMV) – Additional form of tax imposed. Like the ARF, the Excise Duty is also calculated based on a % of the OMV of the vehicle

Open Market Value (OMV) – Assessed by the Singapore Customs, OMV takes into account the purchase price, freight, insurance and all other charges incidental to the sale and delivery of the car from the country of manufacture to Singapore. The OMV is not the selling price from the manufacturer to local authorized dealers.

Certificate of Entitlement (COE) – Consists of five categories: Cat A (Cars 1600CC below & Taxi), B (Cars above 1600CC), C (Goods Vehicle & Bus), D (Motorcycles), and E (Open).

Additional Registration Fee (ARF) – 100% of the OMV based on the previous ruling. As of the next COE bidding in March 2013, a new tiered ARF structure will apply. Cars with OMV of up to $20,000 will not be affected but the next $30,000 ($20,001 – $50,000) will be taxed 140% of incremental OMV while cars with an OMV above $50,000 will be taxed 180% of incremental OMV.

Carbon Emissions-Based Vehicle Scheme (CEVS) – Vehicles with low carbon emissions of less than or equal to 160g/km are entitled to a rebate of $5,000 to $20,000. On the other hand, car owners will be penalized with a surcharge of $5,000 to $20,000 if their vehicle emits carbon more than or equal to 211g/km.

No. It is signed under your name and hence no insurance will be provided for someone else. In addition, the leasing company has only agreed to lease the car to you and only you. To loan the car to someone else will most likely incur a penalty from the leasing company. This is especially true for high end sports cars.


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