In Singapore, many of us aspire to own a car, or have dreamt of driving a powerful sports car and being seen on the roads doing so. But in reality, these dreams can be hard to fulfill when we take a real hard look at the cost of owning a car in Singapore. The cost of owning a car is stratospheric, even before adding the equally expensive Certificate of Entitlement (COE) that the law requires us to bid for in order for the car to be licensed to drive on the road.
What is a budget car rental?
But there is a way out yet. If you want to realise the dream of driving a car and not empty your bank account, you can always opt to rent a car from a car rental company. A cheap, budget car rental will help you save costs such as on the purchase of the car, car maintenance, road tax and car insurance. The rental cost could come up to only about $50 a day for a basic car. Moreover, if you just need the car for a short term purpose, such as chauffeuring your family around during the Chinese New Year, or being flashy for one occasion, renting a car is so much wiser. There are also many car models to choose from when you opt for budget car rental in Singapore.
Common Reasons for Budget Car Rental
One of the foremost reasons for choosing a budget car rental lies in freedom from administrative work. Most car rental firms will handle the administrative matters including insurance, vehicle inspection, servicing, replacement of wear and tear, and repairs.
Another key point of attraction is of course the lower cost involved. If you buy a new car, you have to pay 30 to 40 percent down payment and also a bank loan. Compare that to renting a car, where you just have to pay a deposit and a monthly fee for the lease period.
Key Benefits of Budget Car Rental
Economically more viable
Let’s look at the nitty-gritty details of the cost of buying a car, and compare it to car rental. A brand new Toyota Vios costs $81,988, and you can own it for about 10 years. If you rent the same Toyota for a monthly fee of $1350, the sum will add up to about the price tag for a new car in just 5 years, but you must not forget the maintenance and servicing fees that you have to foot if you own a brand new car, and on top of these you still have to add a hefty car insurance sum.
Renting a car may actually make better economic sense compared to those who opt for a brand new car in five years as many people do, though if you hold a car for the full 10 years, it would still make sense to buy.
No Down Payment/Deposite
If you pay for a brand new Toyota you will be slapped with a fat 30% down payment which works out to be $24,596. If you rent the Toyota, all you have to foot is a few hundred dollars’ deposit, which comes back to you upon return of the car. So for folks who are cash poor, a budget car rental is definitely more viable.
Suits a Lower Driving Frequency
If you drive the car every day, then buying it will be more economically wise as you are making full use of its value. If you are only looking at driving it occasionally, then renting it is a better choice. If you rent a car, even for a whole year, you can stop the renting at the end of the period and it adds up to a fee of $16,200. In comparison, if you buy a car at $81,988 and decide to stop driving after a year, you will have to sell it at a loss as it will have depreciated.
You can try out different car models
If you do not have any car model preference, renting a car is a better choice as you can sample diverse car models, even more expensive sports models, for short and relatively inexpensive periods of time. Besides driving the cheaper models and saving up on money, you can also try out classier models at promotional rates. Just check with us at BizLink Rent-A-Car, and discover your ideal car! You may get to try Audis, Mercedes, BMWs…the list goes on.
The only downside, if you can call it one, is if you want a specific and rarer model. In that case, you will probably not find it available for rent.
No Damage Charges
Considering that the car rental company has paid for car insurance, you do not have to cough up charges like the car insurance or maintenance fee when the car breaks down.
Watch out however for co-payment clauses in some contracts. You can work around this by buying a damage waiver, paying upfront a sum to pre-empt any accident charges.
More Space Options
If you have a large family and frequent family outings during a festive period, you can rent a SUV to solve your problems. The larger space in the car also allows you to lug picnic baskets, umbrellas and other amenities. On the other hand, if you bought a saloon car, you would be stuck with that amount of space, and the need to still rent an SUV anyway for an additional cost if you needed a larger vehicle for any occasion.
If you are travelling and need to cover long distances, bus rides can be tiring. If you have a rental car of your own, you can pull up for toilet stops whenever you need, take a photograph at enticing places of interest or stop at famous eating places to refuel before continuing with the journey., and save yourself the hassle of booking taxis or private hire cars.
Common Misconceptions of Budget Car Rental
Car Rental is Inconvenient
Some consumers have the wrong idea that car rental is saddled with inconveniences such as mileage limits and rules about where and how you can drive a car. Contrary to this belief, most car rental companies do not impose such restrictions. You get unlimited mileage for use of your rented vehicles in all parts of Singapore.
Eligibility Administrative Work is Tedious
Again this is another misconception that some people have. It is actually quite easy to fulfil the requirements for car rental: you just have to be at least 24 years old or 23 for some rental companies, possess a driving license ( Singapore Class 3 or approved foreign license) and have at least 2 years of driving experience, and pay a reasonable amount of deposit composing a few hundred dollars, and you are on your way to smooth driving a rental car.
It is costly to rent a car
Compared to buying a brand new car, the cost of renting a car is a lot lower. You can rent a car for a day at around $50, compared with the hefty price tag of about $100,000 for a sedan, not to mention, road tax, insurance and the pricey certificate of entitlement that usually costs more than $30,000.
Car Rental Has Much To Offer
In sum, to zip around in a car does not have to be an expensive dream. You can actually do it on a budget by renting a car with its many benefits, and make those benefits go even further by choosing cheaper models, and planning your frequent drive schedules. It is a much wiser move than coughing up a big sum to buy a car that you may not be able to afford or use frequently. And with BizLink Rent-A-Car, you also have a rental partner that’s transparent and offers you great, hassle-free service to make your life a breeze!