Finance

Apr

2023

Getting the Best Deal: 7 Expert Tips for Leasing a Car

April 25, 2023
10:55 am

Unlock Expert Car Leasing Tips for Singapore: Save Money, Choose Wisely & Drive Your Dream Car. Learn from Our Expert Advice Today!

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Understanding The Basics Of Car Leasing

When you lease a car, you rent it from a leasing company or a car dealership for a set time, usually two to four years. During the lease term, you make monthly payments to cover the car’s depreciation and any applicable fees and taxes.

At the end of the lease term, you return the vehicle to the lessor and may have the option to lease a new car or purchase the leased car at its residual value.

Comparison Of Leasing Vs Buying A Car

Leasing and buying a car both have their pros and cons. When you lease a car, you typically have lower monthly payments and the flexibility to upgrade to a newer car every few years. However, you do not own the car and may face mileage or wear and tear restrictions. When you buy a car, you own it and can customise it to your liking.

However, you have higher monthly payments and may face the hassle of selling or trading in the car when you want to upgrade to a newer one. Ultimately, choosing between leasing and buying a car depends on your needs and preferences.

Understanding Lease Terms And Fees

Lease terms refer to the specific details of your lease agreement, such as the length of the lease, the maximum mileage allowed, and any wear and tear restrictions. It’s important to carefully review and understand the lease terms before signing the agreement.

Lease fees can include various charges, such as an acquisition fee, a security deposit, and a disposition fee. The acquisition fee is typically charged upfront and covers the costs of processing the lease paperwork.

The security deposit is refundable at the end of the lease term. It is used to cover any damages or excess mileage fees. The disposition fee is charged at the end of the lease term and covers the cost of processing the return of the leased car.

It’s important to carefully review and understand all the lease fees before signing the lease agreement, as they can add up and significantly impact the overall cost of leasing the car. Additionally, negotiating some of these fees may be possible, so it’s worth asking the leasing company or dealership if they can be waived or reduced.

Determine Your Budget

The first step is to determine how much your budget is. Determining your budget is an essential step in the leasing process. It helps you understand what you can afford and what car you can realistically lease.

By determining your budget, you can calculate your monthly lease payments and other costs, such as insurance and maintenance, and negotiate for a lower lease rate. This can help you avoid overstretching your finances and ensure you can comfortably afford your leased car throughout the lease term.

Additionally, determining your budget can help you make an informed decision when choosing a car. It will help you narrow your options to cars within your price range.

1. Calculating monthly lease payments:

One of the most critical aspects of determining your budget for a leased car is calculating your monthly lease payments. This involves considering the car’s total cost, down payment or trade-in value, the lease term, and the interest rate. By doing this calculation, you can determine what you can afford to pay monthly for the lease.

2. Considering other costs, such as insurance and maintenance:

In addition to monthly lease payments, it’s important to consider additional costs that come with leasing a car, such as insurance and maintenance. Insurance costs can vary depending on the make and model of the car, your driving record, and other factors. Maintenance costs can also vary depending on the make and model of the car, as well as how much you drive it.

3. Negotiating for a lower lease rate:

Once you have determined your budget and calculated your monthly lease payments and other costs, negotiate with the leasing company or dealership for a lower lease rate. This can be done by comparing lease offers from different dealerships, negotiating the total cost of the car, and asking for any discounts or incentives that may be available. Arranging for a lower lease rate can save hundreds or even thousands of dollars over your lease term.

Choose The Right Car

Choosing the right car is important when leasing, as you want to ensure that the car you lease meets your needs and preferences.

To do this, start by considering your lifestyle, what you’ll be using the car for, and your preferences regarding features and style.

From there, research different car models and brands to find the ones that match your needs and preferences.
You can use online resources to compare features, specs, and pricing and check reviews and ratings from other consumers and experts. This can help you make an informed decision and choose a car you’ll be happy with for your lease term.

Inspect The Car Thoroughly

Inspecting the vehicle thoroughly before signing any lease agreement is critical when leasing a car. This ensures the car is in good condition and any pre-existing damage is documented. Here are some key things to keep in mind when inspecting a car for lease:

1. Check the exterior:

Walk around the car and inspect the body for any dents, scratches, or other damage. Take note of any damage, no matter how small, and ensure it is documented.

2. Check the interior:

Inspect the seats, dashboard, and other interior features for any signs of wear and tear. Check the air conditioning and heating system, the audio system, and any other important features.

3. Check the tires:

Make sure the tires are in good condition and have enough tread depth. Check for any signs of damage or uneven wear.

4. Take it for a test drive:

Test the car to ensure it handles well and has no strange noises or vibrations. Pay attention to the brakes, steering, and acceleration.

5. Review the lease agreement:

Make sure you understand the terms of the lease agreement, including any mileage limits, maintenance requirements, and penalties for early termination.

Negotiate The Lease Agreement

When leasing a car, it’s important to negotiate the lease agreement to ensure you get the best deal possible.

Carefully Review The Lease

Review the lease contract carefully before signing. This will help you avoid surprises or hidden fees during the lease period. Make sure you understand all the terms and conditions, including the mileage limits, wear and tear policy, and end-of-lease options. Feel free to negotiate with the dealer if you’re uncomfortable with something.

Don't Be Afraid To Negotiate

You can ask for lower monthly payments, interest rates, or a longer lease period. Be realistic with your expectations, and remember that the dealer will try to make a profit. However, if you have good credit, you can use this as leverage to negotiate better terms.

Know Your Rights and Responsibilities

Lastly, understand your rights and responsibilities as a lessee. This includes knowing when and how to make payments, what to do in case of an accident, and how to return the car at the end of the lease.

You can avoid any unnecessary fees or penalties by understanding your rights and responsibilities.

Prepare For End-Of-Lease Options

As the end of the lease period approaches, lessees have several options to consider.

One option is to return the car to the dealer and walk away if all the lease terms and conditions have been met.

Another option is to purchase the car at the end of the lease period. Typically, there is a residual value set at the beginning of the lease, which is the estimated value of the car at the end of the lease period. If you decide to purchase the vehicle, you’ll need to pay the residual value, which can be negotiated with the dealer.

A third option is to trade the car for a new lease or purchase. This option allows you to avoid the hassle of selling the car on your own and also allows you to get a new car. However, remember that you’ll need to pay any fees or penalties arising from excess mileage, wear and tear, or other lease violations.

It’s important to review your end-of-lease options carefully and consider your circumstances before deciding. Depending on your needs and preferences, one option may be more beneficial than the others. Additionally, ensure you understand all the terms and conditions related to each option to avoid surprises or hidden fees.

Take Advantage Of Incentives and Promotions

Before finalising your lease agreement, it’s important to research the current lease incentives and promotions offered by different dealerships or car manufacturers.

These incentives may include lower monthly payments, waived security deposits, or other special deals that make your lease more affordable. By keeping an eye out for these promotions and taking advantage of them, you can save hundreds or even thousands of dollars over your lease.

Take Advantage Of Seasonal Deals

Another way to save money on your lease is to time your agreement to take advantage of seasonal deals.

For example, many car dealerships offer better lease deals towards the end of the year as they try to clear out their inventory before the new models arrive.

Some dealerships may offer better deals during holidays or other special events. By carefully timing your lease agreement, you can secure a better deal and save money on your monthly payments.

Negotiate Additional Perks

Finally, it’s worth noting that you can negotiate additional perks or benefits when leasing a car. For example, you could ask for free maintenance or repairs during your lease or request a lower buyout price at the end of the agreement.

While not all dealerships may be willing to offer these types of perks, it’s always worth asking and negotiating to get the best possible deal on your lease.

Be A Responsible Lessee

Being a responsible lessee is crucial when it comes to leasing a car. Not only does it help to ensure that the car remains in good condition throughout the lease term, but it can also prevent any additional fees or penalties from being incurred.

As a lessee, it is vital to maintain the car properly and on schedule, including regular oil changes, tire rotations, and other necessary maintenance.

It is also important to keep up with monthly lease payments to avoid any late fees or penalties and take care of any required repairs or maintenance promptly to prevent further damage or issues.

Being a responsible lessee means you can enjoy the benefits of leasing a car without any unnecessary stress or financial burden.

Conclusion On Tips When Car Leasing In Singapore

Leasing a car can be an excellent option for those looking for flexibility and lower monthly payments.

In Singapore, there are many things to consider when leasing a car, such as understanding lease terms and fees, determining your budget, choosing the right car, negotiating the lease agreement, and being a responsible lessee.

By following these tips and being responsible, you can make the most out of your leasing experience. So, if you are in Singapore and considering leasing a car, go for it!

With these tips, you can be confident in your decision and enjoy the benefits of leasing.

Frequently Asked Questions About Car Leasing In Singapore

What Is Car Leasing?

Car leasing is a long-term rental agreement with a monthly fee to use a vehicle for a set time.

What Are The Advantages Of Leasing A Car?

Leasing a car offers several advantages, including lower monthly payments, lower maintenance costs, the ability to drive a nicer car, and the flexibility to change cars every few years.

What Happens If I Exceed The Mileage Limit?

If you exceed the mileage limit in your lease agreement, you may have to pay an additional fee for each mile over the limit.

Can I End The Lease Early?

Yes, you can end the lease early, but you may have to pay an early termination fee.

Apr

2023

Driving in Style: 6 Reasons Why Leasing a Car Might Be Right for You

April 25, 2023
10:44 am

Car leasing is a popular way for individuals to drive a car without the high upfront costs of purchasing a vehicle. Instead of buying a car outright, a lease allows you to make monthly payments for using the vehicle over a set period.

At the end of the agreed-upon period, you have a choice of either returning the car or purchasing it for a predetermined price. Leasing a vehicle has various benefits, including lower monthly payments, driving a nicer car for less money, lower maintenance costs, and more flexibility.

In this article, we will explore the top benefits of leasing a car in more detail, helping you decide whether it’s the right choice for you.

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Leasing Offers More Value For Your Dollars

Leasing a car is essentially renting it for an extended period of time, typically 2-3 years. While the leasing monthly payment will be higher upfront compared to the monthly payments of owning a vehicle, it actually includes the maintenance, servicing, road tax and insurance. This gives you more value per payment made.

Once your contract is up, you can take the car back to the leasing company or purchase it for a predetermined price.

To Lease Or To Buy?

When you purchase a car, your monthly payments are based on the total value of the vehicle, plus interest and any fees. This can result in much higher monthly payments compared to leasing.

For example, a $30,000 car may lead to monthly costs of $500 over 60 months, whereas leasing the same car may result in a monthly payment of around $300 for 36 months.

By leasing the unit, you can enjoy all the benefits driving a new car entails without the high monthly fees associated with purchasing one. This can especially appeal to those on a tight budget or those who like to switch cars frequently.

More Cars For Your Money

What Is Depreciation

Depreciation is a decrease in the value of an asset due to wear and tear, obsolescence, or other factors. In cars, this could include mileage or technologies. In car leasing, the monthly payments are based on the car’s depreciation during the lease term rather than the vehicle’s entire value.

It is the company’s job to estimate the vehicle’s depreciation and provide you a residual value, or how much it will be worth at the end of the lease term, and subtracts that from the car’s initial value to determine the amount of depreciation that will be paid over the lease term.

Because the lessee is only paying for the car’s depreciation rather than the entire value of the vehicle, monthly payments are typically lower compared to buying a car outright.

How Leasing Can Allow For A Nicer Car

This leads to how leasing can allow for a nicer car because the monthly payments are based on the car’s depreciation during the lease period rather than the vehicle’s total value. This means that for the same monthly fee, you can lease a higher-end or more expensive car than you could afford if you purchased the car outright.

Also, leasing allows for the flexibility to switch to a newer or different car every few years, allowing you to drive the latest models and take advantage of the newest features and technology. This can be especially appealing to those who like to stay current with the latest trends and advancements in the automotive industry.

Lower Maintenance Costs

Leasing can lead to lower maintenance costs because the manufacturer’s warranty typically covers the car for the lease term. This means that any repairs or maintenance required due to normal wear and tear generally are covered by the warranty, saving you money on unexpected repair costs.

Additionally, because you are only leasing the car for a few years, you will likely encounter fewer maintenance issues than if you were to own the car for a longer period.

Warranties

A warranty for a car is a promise made by the manufacturer to repair or replace specific components of the car if they fail or malfunction within a certain time frame or mileage limit. Warranties are typically included with the purchase or lease of a new car and can cover various parts. This may include the engine, transmission, and electrical system.

The length and coverage of the warranty can vary by manufacturer and model, but they typically last for a few years or a certain number of miles, whichever comes first.

Warranties can give car buyers peace of mind knowing that certain repairs will be covered. Still, it’s important to read and understand the terms and limitations of the warranty to ensure that you are fully covered in case of a malfunction or failure.

Less Maintenance Means You Save Money

Leasing a more recent car can be a considerable cost advantage, as newer cars typically require less maintenance than older cars. This is because newer cars have advanced features and technology that make them more reliable and efficient, resulting in fewer repairs and maintenance issues. The newer the car, the fewer maintenance costs come out of pocket.

Fewer Trade-In Hassles

Leasing can lead to fewer trade-in hassles because, once the lease ends, you simply return the car to the leasing company and are free to lease a new car if you choose to do so.

End-Of-Lease Options

You typically have a few options at the end of the lease term. One option is to return the car to the leasing company and walk away.

Another option is to purchase the car from the leasing company for its residual value, estimated at the end of the lease term. This can be a good option if you’ve grown attached to the car and want to keep it longer.

Finally, you may also have the option to extend the lease for a few more months or even a year, which can be a good option if you need more time to decide what to do next or if you’re waiting for a newer model to be released.

Flexibility

One of the most appealing aspects of leasing is the ability to change cars every few years. This means that you can always be driving a newer car with the latest features and technology, which can be a great advantage for those who like to have the latest and greatest when it comes to their vehicles.

Additionally, because you’re not tied down to one, you can switch to a different type of car if your needs or preferences change. For example, suppose you need a larger car to accommodate a growing family or decide you want a sportier car for a change of pace. In that case, you can lease a different car that meets your needs.

This level of flexibility can be a great advantage for those who like to switch things up and keep their options open.

No Need To Worry About Selling

One significant advantage of leasing a car is that you don’t have to worry about selling it when it’s time to move on. Instead, at the end of the lease term, you return the car and then choose to lease a different, newer car if you like.

Leasing means you don’t have to deal with the hassle and stress of trying to sell the car yourself, which can be time-consuming and often frustrating.

No Worries On Resale Value

Another advantage of leasing is that you don’t have to worry about the car’s resale value.

Resale value is the estimated value of a car when it’s sold or traded in, and it’s an essential consideration for those who own a car and plan to sell it down the road. However, when you lease a car, you’re not responsible for the resale value because you return the car.

This means that you don’t have to worry about factors that can affect the resale value of a car, such as wear and tear or changes in the market for that particular make and model. This can be a great advantage for those who want to avoid the uncertainty and potential financial loss associated with the resale value of a car.

Conclusion On Leasing A Car In Singapore

Leasing a car can offer a range of advantages over buying a car. Some key benefits include lower monthly payments, the ability to drive a nicer car, lower maintenance costs, and the flexibility to change cars every few years. Additionally, leasing allows you to avoid the hassle of selling or trading in a car. It eliminates the worry about the car’s resale value.

Overall, leasing a car can be an excellent option for those who want to enjoy the benefits of driving a new car without the financial commitment of buying. So if you’re in the market for a brand new car, why not consider leasing?

It could be the perfect way to get behind the wheel of the car of your dreams and enjoy all the perks that come with it. Happy leasing!

Frequently Asked Questions About Car Leasing

What Is Car Leasing?

Car leasing is a type of car financing where you rent a car for a fixed number of years, usually 1-3, and make monthly payments. You then return the car to the leasing company at the end of the lease term.

How Is Car Leasing Different From Buying A Car?

When you lease a car, you’re essentially renting it for a fixed time, whereas when you buy a car, you own it and can keep it for as long as you like. Also, you’re not responsible for the car’s resale value with leasing. You can often get a lower monthly payment than if you were buying making it less of a financial burden.

Can I Customise The Car I Lease?

Depending on the leasing company, you may be able to customise the car you lease with options such as paint colour, interior materials, and technology features. However, it is best to check your lease agreement so as not to incur any fines.

What Happens At The End Of The Lease Term?

At the end of the lease term, you’ll return the car to the leasing company. You may also have the option to purchase or lease a new car.

Questions? Contact Us Today!

Jan

2023

What Are Electric Vehicles? A Must-Read Guide

January 19, 2023
5:33 pm

EVs or electric vehicles are all the rage nowadays. Don’t get us wrong. Nothing about the technology is new — motor companies have been developing their versions of electric cars even as far back as the 19th century.

But what exactly are electric vehicles? What makes them tick? Electric vehicles are at the forefront of the charge as industries slowly transition towards renewable energy sources.

Everyone wants a slice of the pie — from communities implementing green initiatives through electric motor-powered buses to EV manufacturers looking to dominate the market. The electric vehicle industry is lucrative and poised to become the future of green transport.

Without further ado, here’s the lowdown on all things electric vehicles. Let’s get right to it.

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What Are Electric Vehicles And How Do They Work?

Electric vehicles or electric cars are automatic vehicles powered by an electric motor. Fully electric cars don’t need to run on a petrol or diesel engine.

Unlike the traditional internal combustion engine, electric cars don’t rely on fossil fuels. Instead, the electric vehicle relies on energy stored in battery packs. This propels the wheels and sets the entire vehicle in motion.

When the driver brakes the car, the vehicle decelerates. This causes the electric motor to become an alternator, which generates power. Power circulates back into the battery pack, and the cycle begins.

Since electric motors can provide maximum torque even at slow speeds, the driver doesn’t need to change into multiple gears. The electric car uses a one-speed transmission, whereas traditional fuel engines have to produce power at narrow bands of engine speed.

Types Of Electric Vehicles

Electric vehicles are further subdivided into different types, depending on the extent by which the car runs on battery alone.

Some EVs can run entirely on electricity, known as pure electric vehicles. Other EVs use a mix of fuel and electric motors and are called hybrid electric vehicles.

We cover other types of electric vehicles below:

Battery-Electric Vehicles (BEVs)

Battery electric vehicles or BEVs run only on electricity. They’re more popularly known as pure or 100% electric cars.

A pure electric vehicle does not need to run via an internal combustion engine. This creates lower levels of tailpipe emissions and gets their power solely from EVSEs (Electric Vehicle Supply Equipment), which sustainably draw energy from the electricity grid.

Hybrid Electric Vehicles (HEVs)

Contrary to popular belief, only some electric vehicles run totally on electric motors. Such is the case with hybrid cars that run via a combination of an internal combustion engine plus one or more motors.

Unlike pure EVs, hybrid car drivers cannot recharge their vehicles through EVSEs or a charging station. Instead, the car charges through regenerative braking and its combustion engine.

Regenerative braking converts kinetic energy derived from the braking motion into electrical energy. This process effectively charges the car’s high-voltage battery.

Two energy sources work for a hybrid electric car since it leads to a potentially smaller engine. The electric battery can also minimise engine idling when the vehicle is slowing down to a stop.

Overall, this results in better fuel economy without hampering driving performance. The car uses up only a little fuel while idle, making trips to the station less and less frequent.

Plug-In Hybrid Vehicles (PHEVs)

Plug-in hybrids combine the best of three worlds by running on a battery, an internal combustion engine, and an electric drive motor. Like a hybrid car, it can be recharged from an external power source.

Most PHEVs can comfortably run up to 80 km before depleting the electric battery. Once it’s exhausted, the driver can still resume the drive by activating the hybrid mode (which does not limit the range).

One downside is that owning PHEVs can be much more expensive than driving conventional vehicles. This is because they need to be regularly charged to maximise efficiency.

Extended Range Electric Vehicles (E-REVs)

Although E-REVs are considered “all-electric”, they are also powered by a small combustion engine which provides additional electricity.

As the name suggests, E-REVs have a much larger battery in the 10-20 kWh capacity. When the battery has been exhausted or discharged, this triggers the small combustion engine to operate a generator. In turn, it powers the electric motor and/or recharges the depleted battery.

E-REVs offer solutions to the range limits facing BEVs. In moderate distances, for example, E-REVs can run fully electric. These electric cars are also much cleaner and energy-efficient than BEVs as they use less fuel than conventional vehicles.

Fuel Cell Electric Vehicles (FCEVs)

Fuel cells use chemical energy from hydrogen and a mix of other fuels to produce electricity cleanly and more energy-efficiently.

When integrated into electric cars, fuel cells allow FCEVs to be powered solely by hydrogen. This reduces tailpipe emissions and produces cleaner energy. Vapour and warm air are the only by-products left after energy is used up.

FCEVs work similarly to electric vehicles, where the stored energy is converted into electricity via the fuel cell. These cars can also be fuelled up by hydrogen in as fast as four minutes, with a driving range comparable to cars with traditional fuel engines.

Reasons To Drive Electric Vehicles

The upfront costs of purchasing electric vehicles are significantly higher than traditional cars. However, its long-term benefits far outweigh these expenses. With that, here are some reasons to drive electric vehicles:

Lower Fuel And Maintenance Costs

Charging an electric car can save about 50% more than fuelling a standard gasoline engine (at the same distance). Most drivers can leave their vehicles charging overnight and drive on a full charge the next day.

Maintenance costs are also far lower for electric vehicles. This is because they have far fewer moving parts and fluids to top up compared to the average car.

When you lease an electric vehicle in Singapore, you’ll reap more savings than renting a traditional car. It’s an excellent option for drivers who want to reduce their carbon footprint while having a constant mode of transport to rely on.

Experience High-Performance Driving

There’s a misconception that electric vehicles are far less powerful than their combustion engine counterparts. This couldn’t be further from the truth. An electric car with the same horsepower rating can maximise its power better than a traditional car with more moving parts.

In addition, there’s nothing quite like the experience of driving electric cars. The motor is responsive, not to mention a powerful acceleration that will make anyone feel like the king of the fast lane.

If you’re renting an electric vehicle for commercial purposes, your passengers will experience the same enjoyment as the ride is relatively smooth.

Perfect For Green-Conscious Drivers

Electric vehicles certainly don’t lag behind in the green race. Their gradual adoption into commercial spaces worldwide, not just in Singapore, indicates their increasing popularity.

Drivers are now becoming more conscious of their vehicle emissions. In addition, the government also provides incentives to EV drivers through its carbon tax scheme and government-subsidised EV purchases.

Electric vehicles are here to stay in Singapore, whether you’re looking to lease or buy one.

Accessible Charging Points

If you’re planning to buy or lease an electric vehicle in Singapore, you’ll find charging points are located island-wide in strategic locations.

This is because EV charging stations are conveniently situated in commercial infrastructures, such as car parks, gas stations, city hubs, and the like. If your vehicle runs out of battery, there’s bound to be a station nearby to recharge it.

Conclusion About Electric Vehicles In Singapore

Electric vehicles are ushering in a new age of green transport in Singapore. As the government continues rolling out initiatives supporting electric vehicles, there’s no doubting the industry’s bright future.

Need to lease an electric car in Singapore? Hong Seh Leasing offers flexible car leasing plans that match your transport needs.

What are you waiting for? Drive the latest BMW, Toyota, Lexus, and Mercedes-Benz through leasing now!

Frequently Asked Questions About Electric Vehicles

Are There Electric Cars In Singapore?

Yes. Recent statistics show that electric cars make up more than 8% of car registrations in Singapore, and more EV charging stations are popping up island-wide.

Can Electric Cars Accelerate Faster?

Yes. Electric vehicles accelerate faster than gasoline cars because electric motors are much simpler. This allows the EV to run at full torque, leading to instant acceleration.

Can You Lease An Electric Car In Singapore?

Yes. Electric car leasing is currently the most popular way of financing an electric car. Inquire at Hong Seh Leasing to know more about our EV leasing packages.

What's The Biggest Advantage Of Electric Vehicles?

Zero tailpipe emissions currently make electric cars preferable over gas-powered cars (emissions-wise). This helps the environment by reducing greenhouse gases and air pollution levels. EVs also have quieter engines, leading to less noise pollution.

Should You Lease Or Buy An Electric Car In Singapore?

Currently, leasing an EV in Singapore is more popular than buying one. This is because new EV models with state-of-the-art features are introduced daily. Car leasing companies in Singapore allow drivers to get behind the wheels of the newest EVs by leasing them out to them for a monthly fee.

Questions? Contact Us Today!

Jan

2023

How Do Electric Vehicles Help The Environment? 4 Must-Read Points

January 18, 2023
5:35 pm

As the new face of renewable energy transport, there’s no doubt electric vehicles are hitting Singapore roads like crazy. We have seen an increase in drivers using more electric cars to navigate Singapore’s busy streets and thoroughfares.

A surge in the Lion City’s population of driving more electrified cars than diesel vehicles begs many questions. Do they drive these cars to reduce their carbon emissions? How do electric vehicles help the environment? Why are fewer and fewer people using petrol or diesel cars?

Touted and marketed as the more eco-friendly mode of transport, electric cars have no doubt disrupted a multi-billion dollar industry long dependent on fossil fuels and non-renewable energy sources.

So what makes these electric vehicles green? Can they help tackle the ever-pressing climate change issue?

We explore the answer to these questions and more with this guide. Let’s get rolling.

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1. Pure Electric Vehicles Have Zero Tailpipe Emissions

Cars with zero emissions refer to vehicles that don’t produce any carbon dioxide emissions from the exhaust pipe. As you can see, this only applies to all-electric or battery-electric vehicles with no direct carbon emissions.

Battery electric vehicles are electric cars powered by rechargeable lithium-ion batteries. They don’t need a gasoline engine and run purely on energy stored in the battery pack.

In contrast, conventional vehicles can emit up to 4.6 metric tons of carbon dioxide annually (according to figures from the United States EPA). But this can depend on the car type, fuel economy, and annual kilometres.

In this regard, vehicles purely powered by electric motors will be significantly more eco-friendly. Lower tailpipe emissions also mean lower ground-level ozone and less particulate matter in the air, which can impede visibility and worsen lung and heart-related diseases.

2. Electric Vehicles Improve Fuel Economy

Driving an electric vehicle can drastically improve fuel economy, thanks to the car’s high-efficiency components.

All-electric vehicles and PHEVs (Plug-In Hybrid Electric Vehicles) mostly or partly rely on electric power, meaning their fuel economy is calculated differently from conventional cars.

Standard metrics for measuring the fuel economy of an electric car are kilometres per litre and kilowatt-hours (kWh) per 100 km.

While an accurate estimate is not possible due to several factors like driving habits, electric vehicle type, and the like, modern electric vehicles can reach a range of 200 km/l and drive upwards of 160 km while consuming only 25-40 kWh.

Hybrid electric vehicles can also record better fuel efficiency and lower costs than cars powered via internal combustion engines.

For example, the 2022 Toyota Corolla Hybrid was listed as having a fuel economy of 22 km/l, while the same estimate for a typical 2022 Corolla (automatic and four-cylinder) was around 13 km/l.

While the fuel economy for medium and heavy-duty all-electric vehicles and plug-in hybrids depends on the car’s load and duty cycle, they generally lead to lower fuel costs than conventional cars.

3. EV Batteries Are Long-Lasting

If you want to reduce your carbon footprint by either buying or leasing an electric car in Singapore, you will do well knowing that EV batteries can last for up to 15 years.

Advanced EV battery production generally predicts an extended lifespan, but they will eventually succumb to wear and tear.

Many electric vehicle manufacturers currently offer eight-year warranty or every 160,000 kilometres driven. Similarly, predictive modelling from energy labs indicates that today’s electric cars are equipped with EV batteries with a 12-15 year lifespan in mild climates (+/- 4 years under extreme duress).

But it should please you to know that newer electric cars in the market are advertised as capable of lasting up to 20 years for 1,500 charge cycles.

Nevertheless, it’s on a case-by-case basis. It’s still important to check with your car leasing company about your leased electric car’s battery life and warranty.

4. EV Batteries Are Recyclable

Whether electric cars produce less harmful emissions and lower environmental impacts, we must understand the battery production cycle.

Currently, electric vehicles rely on lithium-ion batteries to run. This complicates things, as the battery production process is high energy-intensive and is now one of the most significant sources of carbon emissions.

Energy experts have weighed in on this discussion. They’ve noted that it’s possible to produce 30% to 40% more greenhouse gas emissions in EV battery production than for a petrol or diesel car.

But high emissions will eventually pay off in the long run. This is because EV batteries are highly recyclable, even if they have varying end-of-life processing than conventional cars.

How EV Batteries Are Recycled

A standard lithium-ion battery from an electric car has many valuable materials and resources worth saving from landfills.

Before it’s recycled, the battery is first disassembled via large machinery. This effectively breaks down the battery into tiny pieces, which are sifted and separated by the machine based on size.

This breakdown process divides the battery’s parts into ferrous, non-ferrous materials, and plastics. Non-ferrous materials are the most valuable, as they contain crucial components like nickel, manganese, cobalt, and lithium — all of which are recoverable in hydrometallurgy.

Hydrometallurgy is the process of recovering non-ferrous materials through solvent extraction. Many US recycling companies can report a lithium-ion recovery rate of up to 98%.

Once recycling factories have recovered the materials, they can be further processed and used in manufacturing new lithium-ion batteries for further use in electric cars.

Conclusion On How Electric Vehicles Help The Environment

Though the “green” claim for electric cars seems to be only a marketing ploy, many studies indicate they are much better for the environment, to some extent.

Research from Yale University has found indirect electric vehicle emissions are significantly lower than in fossil fuel-dependent conventional vehicles.

Additionally, while it is true that initially, EV battery production has less-than-ideal environmental impacts, one cannot understate the long-term benefits of driving electric cars over petrol or diesel vehicles.

Want to experience energy-efficient driving? Why not lease an electric car from Hong Seh Leasing?

We’re a car leasing company in Singapore offering flexible, comprehensive, lease-to-own leasing packages at low upfront costs.

Talk to one of our guys now and get a chance to lease the latest BMW, Lexus, Mercedes-Benz, Toyota, and electric vans for corporate or personal use.

Frequently Asked Questions On How Electric Vehicles Help The Environment

How Do Electric Cars Reduce Air Pollution?

Electric cars reduce air pollution and improve air quality by not relying on non-renewable energy sources. For instance, cars powered by fossil fuels have many more moving parts, such as fuel lines, tanks, and tailpipes. This differs from electric vehicles, which have fewer or no components powered by fossil fuels.

Are Electric Cars Good For The Air?

Yes. Electric cars generally have a smaller carbon footprint than gasoline cars, even if we consider the energy used to recharge them. EVs also don’t produce any tailpipe emissions.

Why Do People Prefer Electric Cars?

Many drivers prefer electric cars due in part to environmental benefits such as:

Why Are Electric Cars Better For The Environment?

Electric cars are more environmentally-friendly because they use less energy to run the same distance as gas cars. This is because most of their energy is converted into kinetic energy (through regenerative braking) and not wasted as heat.

Questions? Contact Us Today!

Jan

2023

When Leasing A Car, Is Insurance Included?

January 11, 2023
6:51 pm

Leasing a car soon? Wondering what are your options for insurance? Check out this article!

When leasing a car, you may be wondering, is insurance included? All car rental agencies must carry some form of auto insurance, whether full coverage, third-party liability, or third-party fire and theft. Since insurance is included in your rental car package, you don’t have to worry about securing it separately.

But before signing a contract with the lowest rates in town, you should consider the following 8 factors:

Car Leasing Package

When you lease a car, insurance coverage includes the following:

Roadside assistance
Accident repair & claims
Servicing & maintenance
Replacement vehicles

In addition to leasing services, most car leasing companies also offer add-ons and other benefits at slightly higher prices.

Roadside assistance: Most leasing companies would like you to call their hotline for roadside assistance (accident recovery, vehicle breakdown, towing services, etc.) regardless of your status as a customer. The primary difference is the cost of these services and the amount you, the driver, are responsible for.
Accident repair and claims: Accident recovery, accident reporting, insurance claims, and damage repairs.
Servicing and basic wear and tear maintenance: These are typically included in most packages. However, costs associated with damaged parts that are not considered normal wear and tear may be excluded.
Option to change car model mid-lease: Your needs for a car may change mid-lease. Some companies offer the option of upgrading or switching car models in the middle of a lease for a fee.

Insurance Excess And Collision Damage Waiver (CDW)

Insurance excess is the amount you are responsible for paying in the event of an accident. This is the additional payment (excess) that you, the policyholder, will be required to make in case of a claim.

Collision Damage Waiver (CDW) is an add-on option offered by car leasing companies to reduce your liability. Depending on your policy, this may cover anything from the bodywork to the cost of repairing the entire vehicle.

Keep an eye out for insurance excesses that seem suspiciously high, as this could indicate that the stated amount is not the total amount you will be required to pay. Instead, it could be broken down into “total,” “own damage,” and “third party damage” excess.

Prices And Auto Insurance

Read what you agree to before you sign. If you’re not careful, hidden costs can hurt your wallet. Some companies may have base lease rates, but they may not tell you about other fees that appear out of nowhere when you return the car.

The warranty is another important thing to look out for. Find out what your warranty covers and what you’re responsible for in case of an accident or something else.

Always double-check your warranty coverage and liability, as well as fees that aren’t included in the contract, like road tax, lower-than-average insurance excess, excessive wear and tear costs, early termination fees, and extra costs for going over the mileage limit.

Speed Limits

If you’re leasing a car, you should see if there’s a limit on annual mileage; most agreements set limits between 12,000 and 15,000km.

If you are concerned about exceeding a certain number of miles in your leased vehicle, you should also review the terms of your lease. Unless you’re renting an exotic or supercar, most Singapore leasing companies won’t cap your annual mileage.

Rates may be slightly lower for those who agree to a mileage cap, usually between 12,000 and 15,000 kilometres per year (varies by dealer). When it comes to mileage limits, many drivers make the common mistake of severely underestimating their needs, resulting in hefty fines.

Gap Insurance

Gap insurance covers the difference between a vehicle’s residual value and the amount your auto insurer pays if the vehicle is totalled. Some lessors require you to purchase and include premiums in your monthly payments.

Security Deposit

You may be required to pay a security deposit, which the lessor may use to cover car damages or extra mileage charges when you return the vehicle. Your entire security deposit will be returned if you do not owe any additional fees.

Cap Cost

You may reduce your cap cost by negotiating the price, trading in a vehicle, or making a down payment, among other methods. Cap cost reductions can result in lower monthly payments because you pay for the depreciation between the cap cost and the residual value (the car’s value at the end of the lease).

Acquisition Fee

Some leasing companies charge an acquisition fee when arranging the lease. You might be able to negotiate this fee or locate a lease without one.

Conclusion On When Leasing A Car Is Insurance Included

At Hong Seh Leasing, car insurance is included when leasing a car. Be fully protected and discuss with us your leasing needs. Lease a car in Singapore now with Hong Seh Leasing.

We offer Comprehensive and Lease-to-Own packages in Singapore. We offer different leasing services for brands such as: Mercedes Benz, BMW, Toyota, and Lexus. We also offer electric van & lorry leasing for your travel needs.

Frequently Asked Questions On When Leasing A Car Is Insurance Included

What Is A Fully Comprehensive Insurance Policy?

Comprehensive auto insurance covers liability for property damage and bodily injury/death to third parties. It also covers damage to your vehicle caused by fire, theft, storms, floods, and accidents.

What's The Difference Between A Leased Car And A Car Rental?

Here are the main differences between leasing and renting a car:

Rentals are for a few days or, at most, a few weeks.
Leasing agreements are typically for several years.

What Should Additional Insurance Policies Be Considered?

Additional auto insurance policies you should consider before leasing include:

Travel insurance
Windshield and tires
Rental car requirement

You may also check our article on car rental insurance to know more!

How Do I File A Claim For Rental Car Insurance?

Collect evidence from the scene; photographs and videos can be useful. Collect items such as medical certificates, invoices, and other expenses. Your insurance company will require notification of any accidents within 24 hours or the following business day.

If not, the insurer may not cover any claims related to the accident, and the renter may be responsible for all damages resulting from the accident. If necessary, take your vehicle to a certified shop.

Questions? Contact Us Today!

Jan

2023

How Does Leasing A Car Work? 5 Must-Read Facts

January 11, 2023
6:33 pm

"How does leasing a car work?" is likely a question that's popped into your head. After many weeks or months of figuring out a way to drive a car without actually owning one (cars can be costly to maintain, after all), car leasing is the best last resort. But how exactly does car leasing work, and how is it different from a car rental? We'll discuss this topic and some considerations when taking out a car lease. Let's get right to it.

What Is A Car Lease?

Car leasing is an arrangement wherein you make several monthly payments to rent a vehicle for a specific period.

But wait, that sounds a lot like renting a car. Not quite. Car rentals are short-term. Most rental companies offer one-day rentals to customers who need them for a weekend getaway or personal use.

On the other hand, car leasing is long-term. You get to use the vehicle for various purposes (commercial, corporate, or personal) for several years, as agreed between you and the car leasing company.

Depending on the car leasing company you’ve engaged with, you can trade a run-of-the-mill Toyota with a top-of-the-line, luxury BMW 4 Series Convertible — that is, if you’ve held up your end of the bargain and made the necessary monthly payment at the end of the lease.

Then, you can start again with a new car lease and drive the new vehicle for whatever purpose.

What's Included In A Car Lease?

A car lease is an agreement between you and the leasing company to “borrow” a vehicle for an x number of years (also known as the lease period).

When leasing a car, the value of your monthly payment will depend on the vehicle’s depreciation. This is the difference between its selling and purchase price.

Depreciation rates vary across different makes and models, but you can expect 15-35% in the first year, down to 50% over the next three years.

Your car lease contract can cover the following:

Down payment/upfront costs of leasing a car
Lease length (you will generally encounter two types of lease periods:
- Brand new car – A minimum of 3 years or above
- Existing car – A minimum of 6 months or above
Termination fees (if you end up returning the vehicle before the leasing period ends)
Mileage allowance or how many kilometres you can drive yearly – Most leasing companies only allow a mileage limit of 15,000 to 25,000 kilometres. They may ask you to pay for every kilometre exceeded)
Wear and tear – The lessor (leasing company) may ask you to pay extra for excessive wear and tear on the leased vehicle. Eating, smoking, or other activities may increase the likelihood of incurring additional wear and tear fees.
Annual insurance and road tax coverage – There’s no need to renew road tax or find an insurance company to cover the vehicle. These are already included in the leasing plan.
Regular maintenance and servicing – Car leasing packages include maintenance costs for tyres and batteries.
Flexible lease terms – Lease a corporate vehicle or a brand-new car of your choice. Many lease agreements are flexible and allow customers to choose a plan that matches their lifestyle needs.
Replacement vehicle – If you encounter problems with the car, the lessor can offer a replacement vehicle to ensure continuity.

Why Should You Choose Car Leasing Over Financing In Singapore?

Singapore has one of the highest car ownership prices. If you wish to buy a car, you’re not only paying for its purchase price but other fees and taxes, including:

Open Market Value (OMV)
Certificate of Entitlement (COE) renewal
Road tax
Additional Registration Fee (ARF)
Emissions surcharge
Insurance premiums
Maintenance costs
Car loans

Buying a car in Singapore is no walk in the park, which is why many individuals opt for car leasing instead, and for several reasons:

Low Monthly Payments

Monthly car leases are generally lower than the payments you’ll make after taking out a loan for a car.

Lower Down Payment

In addition to low down payments, car leasing generally offers lower down payments (10%) than buying a brand-new car. For example, vehicles with an OMW of $20,000 will require you to make a 30% down payment. Anything above $20,000, you’ll end up paying 10% more.

Wide Variety Of Models To Choose From

If you’ve always dreamed of driving luxury or performance vehicles, leasing a car is more affordable than financing. It’s far less expensive than buying a new vehicle and covering repair and maintenance costs yearly.

Comes With Insurance

The leasing company will already cover the car’s insurance. This gives you peace of mind knowing you won’t need to scour dozens of motor insurance companies for a comprehensive car insurance plan that meets regulations.

No Need To Trade Or Sell The Vehicle

Most car owners are faced with the dilemma of whether to dispose of or sell their used car. This doesn’t happen with leasing since you can always return the vehicle to the lessor without any strings attached.

What Should You Consider Before Leasing A Car?

Leasing a car may be new to you, and the jargon surrounding lease agreements can be confusing. This is why it’s essential to understand common car leasing terms and what they mean:

Acquisition fee – Your car dealership or leasing provider will need you to pay upfront. This is also known as the down payment or acquisition fee for lease arrangements. You may either negotiate this fee or find a company that doesn’t require it.
Capitalised cost – This is the vehicle’s initial price. It’s negotiable in a car leasing arrangement, similar to a car purchase.
Disposition fee – Some companies require customers to pay a disposition fee at the end of the lease. This helps them cover the costs of preparing the car for sale.
Lease term – This refers to the end of the lease.
Purchase option agreement – You can negotiate with the company on how much you’re willing to buy the vehicle for once the lease expires.
Residual value – The vehicle’s value at the end of the lease. The lessor or a third-party financer or dealership will usually determine this.
Proof of income – The lessor may need you to present proof of income showing that you earn three times the leasing rate. This guarantees you can make the lease payments on the agreed monthly dates.
Security deposit – The lessor may request a refundable fee to cover additional damage to the vehicle. It can also cover extra mileage fees if you exceed the mileage allowance. If at the end of the lease, the car is in the same condition as when you received it, the lessor will return the security deposit in full.

What Should You Consider Before Leasing A Car?

Leasing a car is a cost-effective option for people who need an alternative means of transport. It’s also a great way of driving the newest models in the market without paying for all the costs associated with buying a car in Singapore.

Here’s what you need to do to start your car leasing journey:

Choose The Right Vehicle

With a multitude of options to choose from, picking the right car to lease can be overwhelming. But the good news is, most companies offer brand new makes and models.

Think about what type of vehicle you need. Do you need a small SUV to drive your kids to and from school? Or will a sedan fit your lifestyle better?

Determine how the vehicle will fit into your daily activities, then narrow down your options. You can even test-drive the car before committing to it.

What we offer: Hong Seh Car Leasing in Singapore carries the latest models for top car brands like Toyota, Lexus, BMW, Mercedes-Benz, and more. Click here for a complete list of car models available for lease.

Shop Around For Different Leasing Companies

Leasing a car is a significant financial undertaking, and it requires extensive planning. Don’t just agree to the first lease term you receive — do your due diligence by looking at other leasing services and what they offer.

Ultimately, all you want from your car lease is a good deal. Don’t worry about taking time with your decision. Look at company reviews and weigh them against reviews from other companies.

Ensure You Can Make The Monthly Lease Payments

You don’t need good credit standing in Singapore to lease a car. However, you will need to prove that your income is sufficient to make the monthly payments.

This means you’ll need to earn at least 3-4x the value of the lease (you must be making $7,500 at the very least).

Discuss first with your chosen lessor and see if you’re eligible. They may request documents like:

Employment pass
NRIC
Passport
Residential address
Letter of employment including term, salary, benefits, and allowances

Conclusion About How Car Leasing Works In Singapore

Ever wanted to drive a vehicle without actually buying one? We’re not talking about renting. We’re talking about leasing (for a monthly fee).

Car leasing has become a popular option among individuals who need long-term transport. Unlike a rental that lasts for only several days or months, car lease terms can last for up to 4 years, depending on the mileage limit.

Lease a car in Singapore now with Hong Seh Leasing. We offer Comprehensive and Lease-to-Own packages in Singapore. Buy out the car, finish the lease, or trade it after it ends — we give our customers what they need.

Frequently Asked Questions About How Does Leasing A Car Work

What Is Gap Insurance?

Gap insurance on leased vehicles covers the difference between its ACV (Actual Cash Value) and how much you still owe the lessor. If your car gets stolen or totalled, your comprehensive coverage will pay a sum equal to its ACV.

What Happens If You Damage A Leased Car?

You may return a damaged leased car, but the lessor will require you to pay extra fees for exceeding the vehicle’s normal wear and tear.

What Happens When A Car Lease Ends?

When the lease duration ends, you can return the vehicle to the lessor or buy it for its residual value.

Can You Lease Brand New Cars In Singapore?

Yes. Hong Seh Leasing offers new cars for lease. We offer car leasing for different vehicles, such as:

Questions? Contact Us Today!

Dec

2022

Must Read Guide: Insurance For Car Rental In Singapore

December 6, 2022
2:34 pm

Are you travelling to Singapore? Do you need to rent a car? But read this first, here’s what you should know about insurance for car rental in Singapore.

You’ve got your rental car and are ready to start your trip. You probably would ask yourself, “what insurance should I get when renting a car?”.

Car insurance is meant to cover the rental car in case it gets into an accident. Most of the time, the car rental company buys car rental insurance before renting out the car. Here’s a guide to help you with your car rental needs.

Car Rental Insurance

Types of rental car insurance:

Collision Damage Waiver: Coverage for theft, vandalism, and collision damage to your rental vehicle.

Theft Protection: Protection against theft includes the cost of replacing a stolen rental vehicle and any repairs necessitated by an attempted theft.

Third-Party Liability: Coverage for bodily injury or property damage to a third party as a result of an accident you cause while driving a rented vehicle is known as third-party liability.

Personal Accident Insurance: Protects you and your passengers from financial hardship in the event of an accident while driving a rented car.

What Other Insurance Should Be Considered?

1. Windshield And Tires

Tire, wheel, and windshield damage are typically not covered by collision damage waivers. Renters are typically expected to cover repairing or replacing damaged parts, such as flat tires or bent rims.

People should choose this coverage so that they will not be financially responsible for the repairs if any damage occurs to those features.

This is probably because flat tires and cracked windshields happen often, so many insurance companies leave them out to keep their overall premiums low. But if you don’t want to risk paying for damage to both of these parts, make sure your policy covers them.

2. Travel Insurance

This type of insurance is highly recommended for renters who want to travel outside Singapore. However, the insurance coverage provided by some rental car companies is only valid within Singapore’s borders and becomes null and void when the rented vehicle leaves the country.

A good travel insurance policy can cover medical expenses, trip cancellation fees, lost luggage, and even car rental excess. Extra insurance coverage is always a wise investment when renting a car. Always choose full coverage, as this will protect you from the financial hardship of losing a sizable amount due to an accident.

3. Rental Car Requirement

Getting behind the wheel of a rental car from some companies requires meeting stringent requirements.

1. The minimum age to obtain a licence (younger drivers may be barred from obtaining one).

2. The minimum number of years of driving experience.

3. The type of licence

Note: An International Driving Permit is useful if you intend to drive while on vacation in another country (IDP). The International Driving Permit is a translation of your domestic licence. The IDP permits drivers to operate motor vehicles in foreign countries. You must always carry both your IDP and your national driver’s licence. Visit AA Singapore to obtain an International Driving Permit in Singapore.

4. Register Your Co-Driver

If a friend or family member will drive the rental car at some point, register them when you obtain car insurance.

While this will increase your insurance premiums – particularly if your co-driver(s) are young males with less than two years of driving experience – it is preferable to still register and pay for your co-driver..

In the event of an accident involving an uninsured driver, your auto insurance is automatically nullified, leaving you with no coverage whatsoever. Depending on the severity of the incident, this could be catastrophic or even financially ruinous.

5. Excess

The amount you must pay out of pocket before filing a claim with the insurance company is referred to as the “excess.” Most Singaporean insurers base their quotes on an excess of $500 or $600.

Both “excess” and premiums are costs you bear, so when comparing auto insurance quotes, you should consider both factors holistically. There is no point in being enticed by a car insurance policy with a low premium but a high deductible (such as $1,000 or more) if you end up in an accident.

Contact us to learn more and to better assist you with your car rental insurance needs.

6. Workshops

In most cases, your auto insurer will require you to take your vehicle to a service centre that they have pre-vetted and approved. In this way, you and your car insurance company can rest easy about the cost and quality of the repairs.

If you want to have your vehicle serviced at a specific repair facility, however, or if you simply want more options, you’ll need to select a plan that allows you to do so. Plans that cover maintenance at any garage will likely cost more than those that don’t.

7. Roadside Assistance

Do you think it would put your mind at ease to know that you could call for help whenever you needed it if you were involved in an accident?

If so, you should verify that your car insurance policy includes 24-hour roadside assistance. This could be especially helpful for inexperienced drivers who aren’t familiar with what to do in the event of an accident.

8. No Claims Discount (NCD)

The NCD guarantee is important because you don’t want to lose your entire NCD because of a single accident and then have to wait for years to get it back up to 50% or more. In the event of a claim, some car insurers offer NCD guarantees or protectors that last a lifetime.

9. Auto-Renewal Of Car Insurance Premium

It’s a bad idea to let your car insurance policy renew automatically every year: Annual car insurance rates fluctuate for various reasons, some of which are outlined above. When renewing your car insurance, it’s best to shop around and get quotes from at least three companies.

Singapore's Rental Car Restrictions and Low-Cost Insurance

Rental car insurance can be useful in preventing the rental company from going after you for costs related to damages and losses, but it is not without its limitations.

A car rental excess is an additional cost the renter pays when they pick up their rented vehicle.

Some rental car companies may charge a higher “excess” on damage claims to compensate for lower insurance premiums.

Renters are still responsible for paying for minor repairs and damages in the event of an accident.

Conclusion About Insurance For Car Rental

Rental car insurance can be useful in preventing the rental company from going after you for costs related to damages and losses, but it is not without its limitations.

To know more about car rental insurance, talk to us and get a better grasp of what we can offer as the best rental car company. At Hong Seh Leasing, we value your time and efficiency in renting a car. We offer different leasing services for brands such as: Mercedes Benz, BMW, Toyota, and Lexus. We also offer electric van & lorry leasing for your travel needs.

Frequently Asked Questions About Insurance For Car Rental

Do I Need To Purchase A Car Insurance To Rent A Car?

All car rental companies must have insurance, whether comprehensive, Third Party Only, or Third Party, Fire and Theft. Car insurance is included in the rental package, so you don’t need it.

I Rented A Car And Damaged It; What Do I Do?

If you got into an accident, damaged a rental car, and don’t have collision coverage, you have to pay for it out of pocket. But if it’s with insurance — depending on what the car insurance covers — the excess/deductible varies.

Is There A Car Rental Insurance If I Go Overseas?

Only in Singapore will your car rental insurance cover you. If you plan on driving a rental car internationally, you should find out from the company whether or not coverage extends to driving in foreign countries.

Though some car rental insurance policies allow their vehicles to be driven abroad, these policies typically have coverage limits that do not extend to damage done while the vehicle is in foreign territory.

What Do I Do To File A Rental Car Insurance Claim?

Gather proof from the scene —Pictures and videos can help. Collect things like medical certificates, bills, and other costs. Your insurance company will want to know about any accidents within 24 hours or by the next business day.

If not, the insurer might not pay for any claims related to the accident, and the hirer might have to pay for all damages caused by the accident. If you need to, take your car to a certified shop.

Questions? Contact Us Today!

Dec

2022

5 Common Damages On Your Car And What To Do

December 6, 2022
11:26 am

Car accidents are very common. Here are 5 most vulnerable auto parts commonly involved in an car accident.

No matter how cautious or skilled a driver is, a car accident is always possible, and you will encounter common damages on your car. Car accidents invariably result in financial losses regardless of what prompted the disaster.

If you’ve just been in your first car accident, you might wonder what things usually need fixing or replacing. Having this knowledge will help you make the best decisions possible in the event of a road accident.

Here are the five most vulnerable auto parts in the event of a car accident:

Bumpers

Since bumpers are intended to absorb the impact of minor collisions, they are particularly vulnerable to damage.

A damaged bumper could indicate that you were in an accident, or whether a collision with another vehicle, a pole or a curb caused it. The bumper can be restored to like-new condition by simply polishing, sanding, or knocking out any minor damage.

When Is It Time To Fix Your Bumper Or Replace It?

If the bumper has cracks, it probably has to be replaced. Using epoxy or fibreglass to fix larger cracks is not recommended, even though it is possible with smaller ones. If the cracks are too large, the bumper’s ability to withstand impact forces may be compromised.

While do-it-yourself methods for repairing scratches and dents in a car’s bumper may work, professionals with access to high-quality plastic fillers can offer the best solution. Superior fillers are used in this procedure.

Each bumper is equipped with a corresponding hook to secure your bumper to the valance panel, grill, and splash guard. If these hooks get broken, the bumper won’t stay put and could sag, scrape the pavement, or even come off. You’ll have to get a new bumper because these hooks can’t be fixed or replaced.

Headlights

It’s possible that your headlights could get broken in an accident. Two potential dangers emerge if this is the case. For starters, there’s the cover, which is often fashioned from perspex and is liable to crack and break upon impact. The second factor is the actual light bulb.

How To Determine If It's Time To Replace Or Fix Your Headlights

It is imperative first to assess the gravity of the accident. Mechanics can repair headlight covers if the damage is minor. If the cracks are minor, a trip to the car shop is in order, but replacement is recommended if the light output is diminished.

For safety reasons, you should never replace a car’s bulbs without disconnecting the battery. Avoid getting shocked while working on the lights.

It is also essential to check the pigtails or the cables that supply power to the headlights for signs of wear and tear, such as burns, tears, or a musty odour. If you do, it may be necessary to inspect your electrical system.

Fenders

Be sure you can tell the difference between a damaged bumper and a fender, as most individuals can’t! You have two fenders on each side of your car, one on each side of the front wheels and one on each side of the back wheels.

The fenders are especially vulnerable in side-on collisions. Additionally, they are vulnerable to harm when navigating around obstacles and in close quarters. Ensure at least a few centimetres of clearance between your vehicle and the obstruction.

How To Determine If It's Time To Replace Or Fix Your Vehicle Fenders

If the damage to the fender is minor, it can be fixed. There may be some scratches, dents, and discolouration, but the fender will look brand new with a little TLC.

However, if there is structural damage, it is probably best to replace the fender rather than risk further accidents. It’s possible that a fender that has been fixed won’t be as effective as a new one and that a small dent or ding could become a major problem if left unchecked.

Grille

Despite being surrounded by more vulnerable locations, grilles are surprisingly resistant to damage. Most drivers can see an accident coming and take steps to avoid it, like turning to the side, which can damage their bumpers, headlights, and fenders.

How To Determine If It's Time To Replace Or Fix Your Vehicle Grilles

Replacing the grille is usually the best solution. A new one will last much longer than a repaired one and will probably cost the same as the latter. It’s not simply about looks if you think about it — useful since it keeps debris out of your engine compartment.

Consequently, debris can enter your vehicle’s engine and cause further harm if your grille is broken. Moreover, the grille could break off and fly off in the middle of the road.

Hood

Car hoods are the number one prone to damages for various causes, including minor collisions. A tree branch or other heavy object could significantly harm them, or simple wear and tear could render the hinges or latches ineffective.

How To Determine If It's Time To Replace Or Fix Your Vehicle Hoods

In the event of an accident, your car’s hood is designed to crumple to reduce damage. So, don’t dismiss hood dings as only aesthetic or inconsequential.

A simple hinge or latch that gives way while you’re driving might cause a lot of difficulties. Immediately, work on fixing the latch if it doesn’t close securely.

Considering how common car accidents are, it’s natural for most of us to have this one major concern while shopping for a secondhand vehicle.

Conclusion About Common Damages On Your Car

Car accidents can be troublesome, maybe just minor accidents and even worse with major ones. At Hong Seh Leasing, we can guarantee the best car leasing you can ever experience! Contact us and let us know your car leasing needs

Frequently Asked Questions About Common Damages On Your Car

When Should I Visit A Doctor After Suffering Injuries In A Car Accident?

Even if you don’t believe you have injuries, you should get medical attention as quickly as you can after an accident. Your body probably also suffers damage if your car does.

Taking care of these auto accident injuries will aid your speedy recovery, even for minor accidents like a strained muscle or a spinal misalignment.

What Are The Most Common Problems In A Car Vehicle?

Overheating

Internal gasoline engine combustion can generate sufficient heat to melt and deform the metal. The cooling system prevents this from occurring by removing excess heat from the engine block and dispersing it. If your cooling system has been compromised or your head gasket has blown, your engine may overheat rapidly.

Broken Timing Belt

Numerous modern engines employ interference technology. This indicates that the pistons and valves occupy a portion of the same space within the cylinders, although not simultaneously. If the timing belt in your vehicle breaks, the pistons could strike the open valves and ruin them. This can easily cause engine damage.

Hydrodynamic Engine

Combustion engine pistons are designed to compress the mixture of fuel and air in the cylinder. Because air is easy to compress, this method works so effectively. In contrast, water is extremely difficult to compress.

If excessive water enters the cylinders, the piston or related components, like the piston rod, may likely break while attempting to compress it, especially at high RPMs.

Insufficient Engine Oil

Your engine’s oil serves an essential role. It lubricates the engine’s moving parts to protect them from friction-related damage and overheating. If your engine lacks sufficient oil, the engine will deteriorate over time.

What Are The Top 5 Most Common Car Repairs?

Here’s a list of the most-commonly repaired car parts:

The oil/oil filter changed
Wiper blades replacement
Replaced air filter
Scheduled maintenance
New tires

What Are The Common Causes Of Car Accidents?

Here are the most common causes of vehicular accidents:

Drunk driving
Poor weather
Tired driver
Distracted driver
Speeding

Questions? Contact Us Today!

Oct

2022

Leasing vs Buying A Car In Singapore: Read This First!

October 25, 2022
12:08 pm

Not sure to buy or lease? Here's 3 must know facts when it comes to leasing & buying a car at Singapore's prices. You definitely have to read this article.

It’s no secret that Singapore is one of the most expensive places in the world to own a car.

Many residents end up using public transport or booking taxis and Grab rides.

But, there are occasions when owning a car can be extremely handy. For example, when you need to report to the office daily and public transport isn’t going to cut it. Or someone needs immediate hospital care, and there are no available transport options nearby.

Now you’re faced with two options: leasing or buying a car in Singapore.

Both involve motor insurance, road tax, and other maintenance costs.

This article explores the benefits of leasing or buying a car in Singapore and a few factors worth considering.

What Are The Advantages Of Leasing A Car?

Car leasing is an auto financing arrangement wherein you make monthly repayments to drive the vehicle.

It’s similar to “renting” a car for a specific period (2-5 years) and, sometimes, a certain amount of miles.

After the lease term ends, you can buy out your lease if you want to keep the car. Or, you could return the vehicle to the dealership and upgrade to a different model if you wish. Here’s the advantages of leasing:

Convenient

If you’re the sort of person who needs to drive but finds it difficult to keep up with the paperwork of owning a car, then leasing is a cost-effective option.

Car leasing companies will have already taken care of the administrative costs and activities, such as:

– Bidding/renewing a COE (Certificate of Entitlement)
– Registering the vehicle
– Paying the road tax
– Insurance costs
– Maintenance costs

If, in any case, you encounter problems with the leased vehicle, the leasing company will send in a replacement car — something you don’t see when you bring a purchased vehicle for servicing.

Various Models To Choose From

Sometimes, leasing a car is an excellent option for those who plan on buying a car in the future but are unsure about which model to purchase.

To find out how the car can mould to their lifestyle, the buyer can choose short-term leasing and have the vehicle replaced at the end of the term.

Available Luxury Vehicles

If your dream car is a top-of-the-line Lamborghini or Ferrari, you may not immediately be able to pay for the 30-50% down payment and car loan.

However, with leasing, you can drive around a luxury car of your choice and not have to worry about the added maintenance costs.

It’s not a practical move. But if you can afford the monthly repayments and want a taste of the finer things life offers, then, by all means, go ahead.

Plus, driving a luxury vehicle to meet high-end clients is a subtle way of signalling that you should be taken seriously.

Many car leasing companies offer a selection of luxury models at reasonable monthly prices. However, expect that the security deposit may be steeper than for regular cars.

Flexibility

A primary advantage of leasing a car is the financial flexibility.

Many car leasing plans don’t require a down payment before you can drive it.

There may be a security deposit or a few administrative fees to settle, but the final amount doesn’t come close to what you’d have to pay if you purchased a car.

Purchase The Car At The End Of The Lease

In rent-to-own car leasing schemes, you can purchase the car after your term ends. You can go down this route if you had a great experience with the vehicle, and especially if the purchase price is much less than the car’s Open Market Value (OMV).

Lower Repair Costs

Most car manufacturers offer warranties that last 2-5 years.

So, if you take a three-year lease, most repair costs will have already been covered.

Leasing can reduce the hassle of servicing the vehicle, preventing potentially expensive unforeseen expenses.

No Need To Resell

Unless you choose a lease-to-own scheme, there’s no need for you to resell the car in the future.

You don’t need to worry about arranging car viewings with prospective buyers and finding a middleman to help you out.

You only need to be mindful of paying any end-of-lease fees (if any) and expenses due to unusual wear and tear and added mileage, if applicable.

What Are The Advantages Of Buying A Car?

In contrast, buying a car requires securing financing before you can afford one. Chances are, you won’t have cash upfront to pay for its OMV, which is why you need to take out a loan from a creditor.

Another difference is that car ownership involves a long-term commitment.

Most people end up using the car beyond five years, which is much longer than the average lease term.

After which, its value would have significantly depreciated, making it much cheaper than leasing a car of the same type.

Here are the benefits of car ownership:

You Own The Car

If you purchase the vehicle outright with cash, you can pretty much do anything you want on it. But if a lending company has financed it, they “own” the car until you can fully pay it off at the agreed period.

Few Restrictions

A car lease will usually have a mileage cap.

This means you have a limited amount of miles to drive the car, so you’ll have to keep track of this.

But with car ownership, there aren’t many restrictions on what you can do with the vehicle. You can drive it for tens of thousands of miles or even take a road trip to Malaysia.

Buying a car may be the better option if you frequently spend time on the road. No one will charge you extra fees if you exceed the mileage limit.

Customise The Vehicle

Car ownership means you can do much more than adding a windshield sunshade.

The car is yours, so you can add as many customisations as you want.

The extent of the car’s customisations will depend on your willingness to spend on accessories, upgrades, and other tune-ups.

Sell At Your Own Time

Since you own the car, you’re free to sell it whenever you want, provided you’ve successfully paid it off.

If you’re considering upgrading the car model, you can sell off your Toyota Corolla Altis for a Lexus, for instance.

Low Credit Score Requirement

Your credit score reflects your ability to pay off a loan. Leasing a car generally requires higher credit scores than buying one.

By this understanding, it can be more difficult to get approved for a lease than a loan.

Buying Vs Leasing A Car: Disadvantages

Buying and leasing a car also have their own set of disadvantages.

Purchasing a vehicle, especially in Singapore, can be much more expensive.

Before buying a car, you need to consider several factors:

1. OVM – Refers to the baseline value of the car, depending on the make and model.

2. Additional Registration Fee (ARF) – A payable tax after registering a new car. How much you’ll have to pay depends on the car’s OMV. Typically, the higher the OMV, the higher the ARF.

3. Certificate of Entitlement (COE) – This certificate lasts only ten years in Singapore. It’s your ticket to legally registering and driving a car in the city. COE prices tend to be volatile, leading to an increase in car prices. Bidding for a COE can also get inconvenient.

4. Excise Duty and GST – Tax imposed on all consumer goods in Singapore, such as alcohol, petrol, and cars. The excise tax is 20% of the OMV, then an additional 7% for the GST.

5. Road Tax – Be it for a secondhand or brand new car, you’ll need a valid road tax, renewable every 6 to 12 months.

6. Prevailing Quota Premium (PQP) – You can renew your COE every 5 or 10 years once it expires. The value of the PQP will depend on your vehicle category and its lifespan.

We know what you’re thinking — that’s a lot of expenses just for one car in Singapore.

What more if you’re planning on buying another one in the future?

If you’re strongly leaning into leasing a car instead, there are also a few disadvantages you may want to consider:

1. You don’t own the car – Leasing doesn’t immediately allow you to own the car. It ultimately belongs to the leasing company which has “lent” it to you.

2. Mileage limit – Some car leasing companies put a mileage cap as part of the lease term agreements. This means you’ll have to shoulder the costs for the kilometres you’ve driven in excess of the agreed mileage.

3. Stock parts – Remember, the leasing company manages the costs of tires and other car components. You don’t really have any choice if they install stock parts or lease the vehicle as is. However, it’s well within the company’s rights to execute such changes since they legally own the vehicle.

Conclusion About Leasing Vs Buying A Car In Singapore

Ultimately, your choice to lease or buy a car in Singapore depends on your lifestyle. It’s best to weigh each option and determine what will be more suitable.

Consider your budget and transport needs. Can you afford to pay for a brand new car upfront? Go for ownership.

Will you only temporarily need a vehicle as an alternative mode of transport? Leasing may be suitable.

For more information, contact Hong Seh Leasing. We offer electric van rentals and car leasing in Singapore, with dozens of models. Take your pick: BMW, Mercedes-Benz, Toyota, and Lexus, and we’ll handle the rest.

Getting the Best Deal: 7 Expert Tips for Leasing a Car

Understanding The Basics Of Car Leasing

Comparison Of Leasing Vs Buying A Car

Understanding Lease Terms And Fees

Determine Your Budget

Choose The Right Car

Inspect The Car Thoroughly

Negotiate The Lease Agreement

Carefully Review The Lease

Don't Be Afraid To Negotiate

Know Your Rights and Responsibilities

Prepare For End-Of-Lease Options

Take Advantage Of Incentives and Promotions

Take Advantage Of Seasonal Deals

Negotiate Additional Perks

Be A Responsible Lessee

Conclusion On Tips When Car Leasing In Singapore

Frequently Asked Questions About Car Leasing In Singapore

Driving in Style: 6 Reasons Why Leasing a Car Might Be Right for You

Leasing Offers More Value For Your Dollars

To Lease Or To Buy?

More Cars For Your Money

What Is Depreciation

How Leasing Can Allow For A Nicer Car

Lower Maintenance Costs

Warranties

Less Maintenance Means You Save Money

Fewer Trade-In Hassles

End-Of-Lease Options

Flexibility

No Need To Worry About Selling

No Worries On Resale Value

Conclusion On Leasing A Car In Singapore

Frequently Asked Questions About Car Leasing

What Are Electric Vehicles? A Must-Read Guide

Table of Contents

What Are Electric Vehicles And How Do They Work?

Types Of Electric Vehicles

Battery-Electric Vehicles (BEVs)

Hybrid Electric Vehicles (HEVs)

Plug-In Hybrid Vehicles (PHEVs)

Extended Range Electric Vehicles (E-REVs)

Fuel Cell Electric Vehicles (FCEVs)

Reasons To Drive Electric Vehicles

Lower Fuel And Maintenance Costs

Experience High-Performance Driving

Perfect For Green-Conscious Drivers

Accessible Charging Points

Conclusion About Electric Vehicles In Singapore

Frequently Asked Questions About Electric Vehicles

How Do Electric Vehicles Help The Environment? 4 Must-Read Points

Table of Contents

1. Pure Electric Vehicles Have Zero Tailpipe Emissions

2. Electric Vehicles Improve Fuel Economy

3. EV Batteries Are Long-Lasting

4. EV Batteries Are Recyclable

How EV Batteries Are Recycled

Conclusion On How Electric Vehicles Help The Environment

Frequently Asked Questions On How Electric Vehicles Help The Environment

When Leasing A Car, Is Insurance Included?

Table of Contents

Car Leasing Package

Insurance Excess And Collision Damage Waiver (CDW)

Prices And Auto Insurance

Speed Limits

Gap Insurance

Security Deposit

Cap Cost

Acquisition Fee

Conclusion On When Leasing A Car Is Insurance Included

Frequently Asked Questions On When Leasing A Car Is Insurance Included

How Does Leasing A Car Work? 5 Must-Read Facts

Table of Contents

What Is A Car Lease?

What's Included In A Car Lease?

Why Should You Choose Car Leasing Over Financing In Singapore?

Low Monthly Payments

Lower Down Payment

Wide Variety Of Models To Choose From

Comes With Insurance