Leasing vs buying a car (new)

[Hamburger]

Many do know consider the sum as a whole.

 

Only interested in monthly instalment sum.

[Cammys_MR]

From what I've gathered recently, u pay 10% downpayment n balance 90% for 7 yrs for a 2016 car. The car belongs to the leasing company after paying the last installment.u got the option to buy back the car at the amt stated after the final installment.

 

Hi There, I'm having the same situation's, pay 10% downpayment n balance 90% for 8 yrs for a 2017 car.

Kindly elaborate more for my knowledge.

The car cost $107k ...I was told to pay about $1225 without interest for 2yrs.Upon completion,the dealer will transfer the outstanding balance to one of the choosen bank whereby my instalment will be less than $800 to $850 for 8yrs as we took a 10 yrs loan.

Am I being skeptical or this is the procedure if you take lesser downpayment?

[Kar_lover]

From what I've gathered recently, u pay 10% downpayment n balance 90% for 7 yrs for a 2016 car. The car belongs to the leasing company after paying the last installment.u got the option to buy back the car at the amt stated after the final installment.

 

But recently i see PI dealers advertising 10% dp non-leasing scheme. Anyone knows what method they use?

[Soya]

Don't even go anywhere near those 10% dp schemes if u dun want to be the next one here to post kpkb comments abt being fleeced

[Blueray]

Think this is a more suitable thread to discuss about leasing instead of using the Hitachi Leasing one ...

Edited May 11, 2017 by Blueray

[Dafansu]

But recently i see PI dealers advertising 10% dp non-leasing scheme. Anyone knows what method they use?

I think all are advertising 10% not only PI. AD like C&C also doing the same

[Showster]

If spread all costs over 10 years, owning and using a b&b car will cost around $1,500 per month everything included.

 

On that basis, one can see if it is better to rent or to own.

 

Luxury cars I never calculated though.

[RadX]

Think this is a more suitable thread to discuss about leasing instead of using the Hitachi Leasing one ...

 

agree.

 

merged here

[Ingenius]

Hi all,

 

I am thinking of leasing a new car for 5 years versus getting a used car with OMV (say 5 years old). There will be no issue with down payment for the either options.

 

On the surface, leasing seems attractive as it looks to me that one needs not worry about the following items:

 

1. Road Tax

2. Insurance

3. Maintenance and servicing (plus point as used car condition from the 6th to 10th year may be unpredictable).

4. What about consumables like the tyres, battery, wiper and etc?

 

Are the above true?

 

Can the experts advise us here?

 

Thank you very much.

 

Regards,

I feel that the above are not difficult to settle, except maybe the maintenance if it is a conti car.  So get a jap car which every workshop can easily service and repair.  The consumables can be provided by most workshop also .  The key is to stay away from certain makes like French make cars which are notoriously unreliable and expensive to maintain.

[Soya]

If spread all costs over 10 years, owning and using a b&b car will cost around $1,500 per month everything included.

 

On that basis, one can see if it is better to rent or to own.

 

Luxury cars I never calculated though.

But how many ppl u know keep for full 10 years?

 

Juz look at RadX, every 3 months change car

[Showster]

In another life long time ago, I would rent a car for every or every alternate weekend (either day or whole weekend) just for paktor.

 

Maybe about $300-400 a month - quite affordable. I remember it was less than or about $100 per day.

 

But with kids and the costs to rent nowadays, very hard to do that on a regular basis. Can consider all those rent-per-use options if kids are not in the picture.

My circle of close friends mostly tend to keep for 15-20 years.

 

My changing before 10 years is the earliest amongst them.

 

But how many ppl u know keep for full 10 years?

Juz look at RadX, every 3 months change car

 

[Soya]

Wah sei.... u Pioneer Generation ah?

[Squeaky]

I don't understand how leasing can be cheaper than owning the car (assume its a bread and butter car). The assumption here is the leasing company must make a profit.

 

For the company leasing, they have to pay to get the car, and cover the maintenance, tax etc. All this they MUST get it back via the lease payments. And at the end of the lease, they bear the loss of the car (if they sell it for example), They have to make a return on capital and pay operating costs.

 

If leasing is really cheaper, how does it work?

[Showster]

I don't understand how leasing can be cheaper than owning the car (assume its a bread and butter car). The assumption here is the leasing company must make a profit.

 

For the company leasing, they have to pay to get the car, and cover the maintenance, tax etc. All this they MUST get it back via the lease payments. And at the end of the lease, they bear the loss of the car (if they sell it for example), They have to make a return on capital and pay operating costs.

 

If leasing is really cheaper, how does it work?

Leasing really is feasible if it is some form of car sharing. Exclusive leasing of even very old cars still needs to include parking and petrol.

 

It may make sense if a huge drop in COE is anticipated. But current environment not really so.

[Buadongdong]

Imo, leasing only make sense because you have a choice to change the car after the lease period. If you own the car, unlikely you will change the car and make a loss everytime you have something to complain about the car. Usually one will stick with the flaw if its a bearable one. But if you are Radx, then anything goes la..  

 But I guess owning a car would still be cheaper than leasing overall.

[Jman888]

I don't understand how leasing can be cheaper than owning the car (assume its a bread and butter car). The assumption here is the leasing company must make a profit.

 

For the company leasing, they have to pay to get the car, and cover the maintenance, tax etc. All this they MUST get it back via the lease payments. And at the end of the lease, they bear the loss of the car (if they sell it for example), They have to make a return on capital and pay operating costs.

 

If leasing is really cheaper, how does it work?

 

 

i guess it depends on how long or how flexible, for leasing you can go for short term and not worrying about resale or depreciation and maintenance. Leasing company can continue to lease the car to other driver or end up as a rental car.

[Angcheek]

In another life long time ago, I would rent a car for every or every alternate weekend (either day or whole weekend) just for paktor.

 

Maybe about $300-400 a month - quite affordable. I remember it was less than or about $100 per day.

 

But with kids and the costs to rent nowadays, very hard to do that on a regular basis. Can consider all those rent-per-use options if kids are not in the picture.

My circle of close friends mostly tend to keep for 15-20 years.

 

My changing before 10 years is the earliest amongst them.

 

your friends can really take care of cars ... common in MY , not common here. 

[Showster]

your friends can really take care of cars ... common in MY , not common here.

They belong to a rare breed indeed. We are all born and bred in SG though.

 

But my colleagues are a different breed, mostly landed, condo and luxury cars!

Edited May 12, 2017 by Showster