Car leasing is a common practice in Singapore among businesses that have short-term needs for company passenger transport, but cannot justify the cost of buying and maintaining one under the company’s own cash flow.
A smooth leasing experience will depend on your knowing what to do, and what to look out for. Here’s a detailed guide on how to go about leasing a car in 2021 to save you time and money.
Step 1: Choose a Car
The first step you need to take is to choose the ideal car model for your company’s needs–whether it be a generic Toyota or Nissan for general use, or a more luxurious BMW or Mercedes for the personal use of the CEO or the transportation of VIPs, choose a model that provides the right mix of comfort, luxury and practical functions.
You’ll also need to choose a model by balancing how long you need it for, against how much the car might cost. If you need the car for a longer period, you may want to avoid more costly makes and models that will drain your finances.
Step 2: Test Drive It
Next, you need to confirm your choice by test driving it and seeing how it handles–especially if you are personally going to drive this car. There’s no point leasing a cheaper model if it makes you uncomfortable for the duration of your lease.
Step 3: Make Sure You Have a Good Credit Score
A car lease is basically the loan of a car to you–you have to pay it back in instalments, and with interest. Hence, like a typical loan, having a good credit score is important to help you get the best deal possible, with the most favorable payment terms.
A good credit score gives your lease provider the confidence that you will be able to meet your lease instalment payments, and pay on time as well, so it is crucial that your credit score is good. Being in poor standing for credit can result in your lease application being rejected!
You should undertake steps to ensure that your score is good by paying your bills on time and punctually.
Step 4: Compare Lease Deals
Once you’re sure you’re ready to start hunting for a lease for your desired model, it’s time to start looking around. Speak to different car leasers in Singapore to find out what their rates for leasing might be, or, for the best deals with the most reputed dealer of all, you could simply speak to us at ETHOZ car leasing.
What you should be looking for in lease offers are the valuation of the car, its age, as well as the amount you would be expected to pay for the car, as well as the payment schedule–when and how much you will need to pay for each instalment.
Step 5: Negotiate Suitable Payment Terms
Once you have settled on a prospective car lease that suits the duration you need the car for, you can discuss payment terms with your chosen lease provider, to ensure a package that best suits your needs and financial situation. For example, you can discuss how much downpayment to put down upfront, and also your timetable for payments
Step 6: Familiarise Yourself with the Terms and Conditions
As with any agreement and contract you sign, you should familiarise yourself with the terms and conditions for the car you are leasing. Every contract comes with small print that stipulate numerous terms, and once you sign on the dotted line, you are deemed to have agreed and committed yourself to fulfilling these terms, regardless of whether you read the contract and knew the terms were there or not.
These terms can include fees and charges payable for changes to the lease, penalties for late payment or damage to the vehicle, as well as other obligations and requirements that you may have to follow as a lessee. Ensure you have read these terms in detail before signing!
Step 7: Inspect Your Car Thoroughly
The last step before taking possession of your leased car is to carefully inspect the vehicle for yourself. As with all car rentals, you will be held responsible for any damage done to the vehicle once it leaves the custody of the lease provider, so while you are still there, give it a thorough check to ensure that it is working well and undamaged in all major aspects.
Test the engine, check the gauges, lights and brakes, and visually inspect all exterior and interior areas for damage, such as dents, scratches, tears or discolourations and blemishes. Ensure that you report all these to your lease provider and make sure these are recorded as having been there before you took over the keys, or you will find yourself having to pay for damage that you never caused, when you return the car.
Leasing with ETHOZ
In addition to providing you some of the most competitive packages in Singapore for car leasing, ETHOZ also offers one of the widest ranges of available car makes and models for your selection, to meet your every need and purpose.
As one of the most established car rental providers in Singapore, ETHOZ also offers short term and long term car rental services for your needs if the duration or cost of leasing is not ideal for your situation.
With decades of market-leading experience in the automotive industry, ETHOZ is the first and only port of call you’ll need if you’re looking for a good car lease! Contact us today!