If you’re living in Singapore, you may be considering getting a car for your transportation needs. But with the high price of owning a car which includes COE (Certificate of Entitlement), leasing or renting a car can be a more cost-effective option. While leasing gives you the benefit of having a car for a longer period of time, renting provides you with more flexibility in terms of car type.

With both options having their own pros and cons, let’s take a closer look at the differences between leasing and renting a car in Singapore, so you can make a more informed decision.

1. Time Frame Of Use

Leasing a car generally involves a longer-term commitment, usually for a year or more, while renting a car is a more short-term option that can range from a few days to a few weeks and even months. 

If you need a car for a longer period of time, long-term car leasing can be a good choice as you’ll have access to the car for an extended period, usually with fixed monthly payments. This also allows you to use it without having to commit to purchasing one outright. 

Renting a car on the other hand offers better flexibility if you only need a car for a short period of time. Whether it’s for a weekend getaway or a business trip, renting gives you a range of vehicles to choose from, including luxury models or specific makes and models, without the commitment of a long-term contract.

2. Vehicle Ownership Potential

Have you ever considered the possibility of owning a car without the hefty price tag of purchasing it? Leasing a car in Singapore provides you with just that option through lease-to-own car packages, not only do you get to drive the car you desire, but you also have the potential to own it at the end of the lease term. Imagine driving around town and being able to call it yours with a simple purchase at the end of the lease. It’s a great way to enjoy the benefits of car ownership without the upfront costs.

Alternatively, a car rental gives you the freedom to switch between different cars for different purposes, without the hassle of ownership responsibilities. However, the cost may be higher compared to the long-term leasing rate. While you won’t have the option to purchase the car at the end of the rental period, you can rest easy knowing that you won’t have to worry about long-term commitments or unexpected maintenance costs.

3. Car Insurance Requirement

There are some crucial differences between leasing and renting a car when it comes to insurance requirements in Singapore. Car leasing in Singapore typically includes insurance coverage as part of the leasing agreement, which means you don’t need to worry about purchasing insurance separately. This can give you peace of mind and help you avoid any extra expenses.

However, when you rent a car in Singapore, some rental companies may require you to add on insurance coverage, which can be an extra expense to your rental budget. But with Hertz Singapore, you receive unlimited third-party liability coverage (included in all rental packages) and up to S$5 million for property damage per incident. Our rates also come with Loss Damage Waiver (LDW), although the hirer remains accountable for the “Non-Waiverable Damage Excess (NWDE).” To minimise this excess, we offer Protector Saver to reduce it by 50% or Super Protection Saver to eliminate it entirely.

Ultimately, the decision to lease or rent a car in Singapore will depend on your individual needs and circumstances. It’s important to carefully consider the pros and cons of each option and to read the leasing or rental agreement carefully before making a decision. 

Whether you are looking to rent or lease, we have just the solution for you, your budget and your needs at Hertz. Contact us today to know more!