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Owning v.s. Leasing v.s. Grab: Which Option is the Best?

Singapore has one of the best public transit systems in the world. World Atlas puts the city-state at the eighth position. However, it is interesting that Singaporeans still prefer to own cars than using the public transport.

According to the official statistics, the number of vehicles for private use is very high. This is despite a recent decline due to new rules imposed on financing cars.

As a result, the country is taking serious efforts to decongest roads. Part of these efforts include limiting the increase on the number of cars on the roads to 0%. Initially, the Land Transport Authority allowed a 0.25%. However, it seems the small percentage is not enough.

Essentially, all the indicators point to a very tough time for car owners. It will cost quite a fortune to not only purchase but to maintain a vehicle.

However, it is imperative to note that different plans work for different people depending on their preferences. As such, this article will compare the perks of owning vs. leasing vs. Grab to help you choose the best plan.

Owning a car

Singapore is one of those places where the government is quite sensitive to the carbon footprint of cars. As such, serious efforts point to ensuring that vehicles on the roads are in sustainable numbers.

Purchasing a car in Singapore is a tad expensive especially after MAS enforced new rules regarding financing a vehicle. Particularly, you will have to fork out 70% in the form of a loan to acquire a car whose Open Market Value is $20,000. As such, you will have to pay a deposit of 30% and then service a loan for a maximum of 7 years.

Further, you will have to think about insurance for the vehicle, the cheapest being around $850 annually. In addition, the government imposes a road tax that goes towards road maintenance.

The costs do not stop there. Owning a car in Singapore gets tricky when you need somewhere to pack in town. You are likely to spend no less than $5,500 a year only on parking. Compounding all these costs gives you the idea of how much it costs to own a car.

Leasing a car

There are a number of car leasing agencies through which you can hire a car. Particularly, leasing a car in Singapore is handy depending on your situation.

Leasing a car requires a smaller sum for a down payment compared to the one paid while purchasing a car. Therefore, this makes the option cheaper. It is also cheap since you will not be responsible for insurance and other charges like registration.

Additionally, leasing a car is quite flexible. There are very few processes that one has to accomplish when leasing a car compared to purchasing. Further, you will have the freedom to indulge in luxurious models which would otherwise be too expensive.

Grab or Other Ride Hailing Services

Grab or other ride hailing services are another interesting service that makes it easy to drive around town without actually owning a car. Further, you could use the service to hail a cab and get to whichever location you please.

Hailing a cab is the most flexible means of transport you could ever use. This is because you will never worry about parking and other costs like fuel.

Further, Grab is a service company that aims to provide the best services to its customers. As such, they will try as much as possible to ensure that customers have the best ride to their destination. You will never get such quality of service when driving yourself either in your car or the rented car.

Joshua Foo

Financial Services Consultant

Joshua Foo joined Pana Harrison in 2019 after taking a break from the Life Insurance industry for 18 years. He joined the Insurance industry back in 1991 and decided that his passion still lies with helping individuals in their Financial Planning needs.

A dedicated individual who is sincere in listening to his clients and provides quality advise and solutions to cater to each needs.