Leasing vs Owning

[Firestorm1978]

Hi all,
My car's COE is due soon (2026). I am considering getting a new car. But with the current crazy COE prices these days, is it better to lease a brand new car rather than to make a downpayment for a $100k COE new car price (as compared to just 40k-60k in the past)?

 

[Firestorm1978]

Pushing this up

 

[Philipkee]

It depends. How long do you intend to hold it?

If it’s short term (like you are FT here for just one or two years), leasing is the way to go. If you plan to keep it for several years, buying is the way to go.

 

[wahlaneh]

Its a very simple choice

1) if you can fork upfront 70-80k of cold hard cash then monthly pay lesser then buy a new car

2) if you cannot fork out the cash then lease but monthly installment is high

For option 2, you are paying alot more for maintenance + interest + roadtax + dealer margin all priced in.

For option 1 you can at least get free servicing n warranty for 3-5 years so quite ok. If me if i cant do option 1 i will not buy a car…

 

[Spike]

2026 is a good two years away.. for all u know policies might change again, COE prices might drop.

 

[buttbERry]

hows the condition of your current ride?

 

[Firestorm1978]

Its a very simple choice

1) if you can fork upfront 70-80k of cold hard cash then monthly pay lesser then buy a new car

2) if you cannot fork out the cash then lease but monthly installment is high

For option 2, you are paying alot more for maintenance + interest + roadtax + dealer margin all priced in.

For option 1 you can at least get free servicing n warranty for 3-5 years so quite ok. If me if i cant do option 1 i will not buy a car…

Thank you. I can do either option 1 or 2. However, I noticed that there is an option for me to change another ride during my leasing period. Would this be attractive to you?

 

[Firestorm1978]

hows the condition of your current ride?

Current ride nearing 10 years is still below 120k and hasn't been giving me any major issues (touchwood). However, not sure whether it will continue to be so if I renew for another 10 years.

Thus, having a dilemma now. If it was 5 or 8 years ago, when COE was still around the 40 - 60k, I will definitely choose option 1. However, with the current COE ranging around 100k+, it seems that the disadvantages of leasing a car is becoming less in comparison?

 

[Firestorm1978]

2026 is a good two years away.. for all u know policies might change again, COE prices might drop.

I really hope so. If it drops to around 60k+, I will seriously consider renewing...but there are many who said that it's impossible.

 

[buttbERry]

Current ride nearing 10 years is still below 120k and hasn't been giving me any major issues (touchwood). However, not sure whether it will continue to be so if I renew for another 10 years.

Thus, having a dilemma now. If it was 5 or 8 years ago, when COE was still around the 40 - 60k, I will definitely choose option 1. However, with the current COE ranging around 100k+, it seems that the disadvantages of leasing a car is becoming less in comparison?

If no issue can consider renew coe

 

[Tschuus]

Why would leasing be cheaper ? Leasing companies no need pay COEs OR make profits ?

 

[Firestorm1978]

It depends. How long do you intend to hold it?

If it’s short term (like you are FT here for just one or two years), leasing is the way to go. If you plan to keep it for several years, buying is the way to go.

I am buying for the long term. Will leasing be a more viable option if COE remains high at 100k+?

 

[Zorroh]

Current ride nearing 10 years is still below 120k and hasn't been giving me any major issues (touchwood). However, not sure whether it will continue to be so if I renew for another 10 years.

Thus, having a dilemma now. If it was 5 or 8 years ago, when COE was still around the 40 - 60k, I will definitely choose option 1. However, with the current COE ranging around 100k+, it seems that the disadvantages of leasing a car is becoming less in comparison?

If your car is in good condition, you can consider renewing your COE.
The worst option now is to buy a new car with sky high COE.

Leasing or buying has already been discussed in many threads here.
https://forums.hardwarezone.com.sg/threads/long-term-lease-vs-buy-car-which-is-better.6492317/

 

[Firestorm1978]

Why would leasing be cheaper ? Leasing companies no need pay COEs OR make profits ?

I mean leasing is definitely more expensive compared to owning one in the past. However, with the current high COE prices, would the disadvantages of leasing be 'lowered' as compared to owning one now?

 

[ask_yip]

buy

leasing will give you many headache if you caught into an accident, cannot drive out of SG, leasing price increase every year and etc.

also by 2030, only can register new EV or hybrid, if you are not an EV or hybrid supporter, better buy a petrol car when it's still available

 

[Firestorm1978]

buy

leasing will give you many headache if you caught into an accident, cannot drive out of SG, leasing price increase every year and etc.

also by 2030, only can register new EV or hybrid, if you are not an EV or hybrid supporter, better buy a petrol car when it's still available

I have checked with many leasing companies and they mentioned that the leased car could be driven out of Singapore leh. But yes, leasing monthly is definitely more ex. However, with the many 'benefits' offered by the leasing companies and also the sky high 100K+ COE now, not sure whether it's really less 'expensive' to buy a new car for the long term. Moreover, I worry that I may have issues selling my car in future due to the high COE pricing that I bought it with.

 

[Firestorm1978]

Saw this:
https://dicksongroup.com.sg/brand-new-car-leasing-scheme/

Driving your dream car will no longer be just a dream!

You choose.
We buy.
You lease at cost.

We help you buy your dream brand new car at the price you want and lease back to you with zero mark-up on the price. Based on your preferred tenure, we will work out a reasonable monthly leasing fee which makes driving your dream car no longer just a dream. A refundable deposit equivalent to 3 months’ leasing fee will also be collected upfront.

✔ Does not affect your TDSR
✔ No down payment
✔ Fixed low monthly fee
✔ 24/7 Emergency Assistance

Terms and conditions apply.

This scheme allows you to drive off a brand new car of your choice (Distributor or Parallel Import model) without having a need for any down payment. Monthly instalment will include road tax, insurance and GST which have been calculated within your budget.

Benefits:

• Maintain your existing NCD and Build up NCD as you drive.
• Option to buy over at a guaranteed Sell-Back price with no money down.
• You choose, we buy and lease to you at cost.

From their website

 

[Tschuus]

I mean leasing is definitely more expensive compared to owning one in the past. However, with the current high COE prices, would the disadvantages of leasing be 'lowered' as compared to owning one now?

leasing do potentially allow you to avoid sunk costs like a 100k coe. If coe drop significantly over the next few month, leasing allow you to take advantage by switching leasing companies that would adjust the rates or buy a car with the lower coe.

 

[Firestorm1978]

If your car is in good condition, you can consider renewing your COE.
The worst option now is to buy a new car with sky high COE.

Leasing or buying has already been discussed in many threads here.
https://forums.hardwarezone.com.sg/threads/long-term-lease-vs-buy-car-which-is-better.6492317/

Thank you for the link. Hmm, it's a 2021 thread. Just wondering as the current COE now is 100k+ as compared to 2021 back then...I definitely would choose buying if it's still 2021. But now........

 

[Firestorm1978]

leasing do potentially allow you to avoid sunk costs like a 100k coe. If coe drop significantly over the next few month, leasing allow you to take advantage by switching leasing companies that would adjust the rates or buy a car with the lower coe.

Yes. Especially since I am not really tied down to a car loan since I am not buying a car. There is definitely more flexibility and options, especially if the COE prices drop in the near future.