Darthrevan Supercharged June 9, 2013 Share June 9, 2013 Most used-car dealers and small motor firms Channel NewsAsia spoke to are not jumping on the car leasing bandwagon, despite bigger players getting in on the act since the authorities imposed borrowing limits on vehicle purchases. They cite high costs of running a leasing business and unfamiliarity with how to do it as reasons. Still, a few are eyeing the business model as an alternative to car sales. Car leasing schemes are a mid-point between short-term rental and ownership, where you typically hold on to a vehicle for over a year and pay a monthly fee to use it. The car goes back to the leasing company after that. Not being stuck with a depreciating asset like a vehicle has drawn people to the scheme, plus the fact that a sizeable downpayment isn't needed. The government's imposition of loan curbs means buyers have to foot a minimum 40 per cent downpayment for vehicle purchases. Observers have noted that car leasing is one way of beating the curbs. Others call it an option. Eddie Ho, general manager of Sime Darby Services, said: "It's not a way to beat the government's system but it's just another alternative for motorists to consider, because there's no way we can beat the system. "Ultimately, leasing...to me is like another dish on the menu for the companies to sell." Not all motor firms are keen on leasing, since much of the onus falls on the leasing company to keep leased vehicles in order. Many companies simply don't have the resources to do it. Still, some plan to capitalise on the opportunity. CarTimes Automobile plans to starts a leasing arm in June 2013 while Yong Lee Seng Motor has been dabbling with leasing for around three years. Raymond Tang, Yong Lee Seng's director, said: "The difficulty of doing it is that a lot of follow-up, a lot of support you need to give to these consumers. Or else, the consumers will not be happy...what happens if the car breaks down in the middle of the night? You must have workshop support." Observers note that the government's "car-cooling" measures have shifted more attention to the leasing business, although it has been around in Singapore for over a decade. Source: http://www.channelnewsasia.com/news/singap...all/702426.html ↡ Advertisement Link to post Share on other sites More sharing options...
Glyuen 3rd Gear June 9, 2013 Share June 9, 2013 Raymond Tang, Yong Lee Seng's director, said: "The difficulty of doing it is that a lot of follow-up, a lot of support you need to give to these consumers. Or else, the consumers will not be happy...what happens if the car breaks down in the middle of the night? You must have workshop support." typical used car dealer. just want to earn a quick buck and bye bye.. this industry doesnt know what is after-sales service at all. Link to post Share on other sites More sharing options...
Hydrocarbon Turbocharged June 9, 2013 Share June 9, 2013 Raymond Tang, Yong Lee Seng's director, said: "The difficulty of doing it is that a lot of follow-up, a lot of support you need to give to these consumers. Or else, the consumers will not be happy...what happens if the car breaks down in the middle of the night? You must have workshop support." typical used car dealer. just want to earn a quick buck and bye bye.. this industry doesnt know what is after-sales service at all. Plus with leasing, it's small profits over time, and not a lump sum profit which they can take and fly away with... ↡ Advertisement Link to post Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In NowRelated Discussions
Related Discussions
COE Bidding - March 2024
COE Bidding - March 2024
Used Car Dealers Feedback (Part 2)!
Used Car Dealers Feedback (Part 2)!
This is why u dont lend car or money to ur friends
This is why u dont lend car or money to ur friends
Xiaomi EV is Coming
Xiaomi EV is Coming
Cars at Expo - Apr 2024
Cars at Expo - Apr 2024
Best way to sell car (aka highest price)
Best way to sell car (aka highest price)
Singapore ‘open to’ idea of one-off rise in vehicle population
Singapore ‘open to’ idea of one-off rise in vehicle population
New car discount/price/promo
New car discount/price/promo