Get more from leasing

On July 26, 2007

Leasing can offer certain advantages and benefits. Although it may not be for everyone, it is still a very attractive alternative to buying.

Cash Flow and Savings
Essentially, by leasing, you are paying only for the depreciation on the car and not the entire vehicle. In Singapore, car prices are one of the highest in the world. Through leasing, you could get more car for a lower monthly payment.

Leasing reduces your initial cash outlay. But here’s one view on buying a car that could help you look at leasing in the right light: “Cars are expensive in Singapore and they are a depreciating asset - why would you want to own it?”.

Better and newer cars
Leasing means that you can look forward to the latest model with the latest technology. Apart from styling, you’re assured of all the benefits that new technologies can bring to motorists. Also, better and newer cars mean less repair and maintenance. You save time and money.

Avoid Negative-Equity and Enjoy tax benefits
New car loans now stretch to as long as 10 years. At this rate, the car will depreciate much faster than equity builds (this is often known as an “upside down” loan).

When you purchase a new car with a loan, you’re entering the negative-equity zone: higher interest rate, longer loan period, higher monthly payments, lower down payment, and a faster depreciating asset.

Leasing helps you to avoid this. Besides, you can also enjoy leasing tax write-offs.