Rent a car on leasing: instructions for use

Leasing or rental with option to buy (LOA) is a practice to rent a car for a period of 2 to 5 years, with the possibility of buying the vehicle at the end of the contract. Advantageous for drivers with a tight budget or not wishing to commit themselves, leasing  car leasing Singapore nevertheless requires being vigilant on certain points.

Leasing: how does it work

Appeared a few years ago, leasing now attracts more than a million Asian people who want to find an alternative to the financial effort of buying a car. Because to take advantage of the lease with an option to buy, no need to subscribe to a long-term credit: the consumer pays each month or quarter a defined amount to an organization and staggered in this way the financing of his vehicle. In return, he takes advantage of a new car protected by the manufacturer’s warranty throughout the car leasing Singapore rental period.

The LOA is thus similar to a consumer loan that requires a certain amount of vigilance when signing the contract. The following elements are in particular to be studied closely

The deposit. 

The financial institution may ask the tenant to pay a sum corresponding in general to the amount of the purchase option, i.e. 15% of the total price of the vehicle;

Rents. 

Their amounts vary according to the rental period, the model and the mileage defined beforehand. It may happen that the first maturity is more important than the others (about 30% of the initial price). An essential element to take into account when you do not want to buy the vehicle;