Buying a vehicle, whether used or new, can be costly, even for business owners. After all, they will pay massive amounts upfront as a downpayment and settle for monthly expenses such as fuel consumption, routine maintenance, vehicle insurance, etc. The good news is that a company getting a car lease is now commonplace.
The good news is that a company getting a car lease is now commonplace. They can choose whatever kind they need and rent it for how long they want without shouldering too many responsibilities and expenditures.
Keep reading and learn the benefits and drawbacks of a corporate car leasing in Singapore.
The Benefits And Drawbacks Of A Corporate Car Leasing In Singapore
1. Cheaper Monthly Payments
Corporate car leasing in Singapore is several times less expensive, whether for the short or long term. A daily lease costs approximately S$90 to S$140, depending on the type of vehicle you intend to rent.
The estimated price mentioned above could rise if your company plans to get a car lease for a long time, but the monthly and upfront cost is nowhere near the price when you buy a vehicle.
2. Lower Repair Cost
When you rent a vehicle, its manufacturer will cover most of the costs under the general warranty. You will less likely need to pay for the repair or maintenance cost. If you did, it would only be for trivial matters.
To guarantee, however, you should read the fine print of the corporate car leasing agreement and get a signed copy of both parties. These papers will come in handy when you find yourself in trouble later on.
3. Take Advantage Of Tax Deduction
Another benefit of corporate car leasing in Singapore is that you can write off the rental fee as a tax deduction. Go to IRAS’s website to learn more about the tax-deductible related to vehicles.
4. Avoid Depreciation
The depreciation begins, even for branded vehicles, as soon as someone drives the car for a year. On average, it will lose 15% of its price value every year. The percentage could go up to 20% of car owners who do not take good care of their vehicles and let them wear down.
5. You Can Buy Any Leased Car
When you change your mind and prefer to own a car, you apply for a lease to own cars in Singapore. Most rental companies nowadays offer this option so those who want to own a vehicle will not have to shoulder many expenses.
6. Subject To Strict Terms And Conditions
Even though rental companies allow their customers to rent any car they want in their collection, they are subject to strict terms and conditions. A good example would be refilling the gas tank to the same fuel level upon returning the vehicle.
Another example would be paying a penalty fee for any day of returning the rented vehicle late. To prevent that, you should at least inform the rental company a day before your car leasing due ends.
Is Your Company Ready To Get A Car Lease?
If so, contact Hertz Singapore at + (65) 6734 4646 or leave a message on their website! Remember that Hertz Singapore has been in the corporate car leasing industry in Singapore for years, so you can rest assured that the vehicles they offer for sale and rent are in good condition.