In Singapore, renting a car in Singapore as opposed to buying one has become a much more prominent alternative. As reported by The Business Times recently, more individuals and companies in Singapore are turning to long-term car rentals and leasing as the cost of buying and maintaining cars have increased.
Whether you need a vehicle temporarily or for an extended period, car rental in Singapore offers a flexibile alternative, with options ranging from short-term car rental to long-term car rental. But which option is right for you?
The answer depends on your driving habits, budget, and how long you expect to use the vehicle. In this post, we compare short-term vs long-term car rental in Singapore to help you decide which option best suits your needs.
Breaking Down Short-Term Car Rental in Singapore
Short-term car rental in Singapore refers to renting a vehicle for a relatively brief period – this could mean from several days or weeks. It is a useful option if you only need temporary access to a vehicle and do not want to commit to a longer rental period.
Short-term car rental may be suitable if you:
- Need a temporary replacement while your own car is being repaired or while waiting for your new car to arrive
- Require a vehicle for a short-term work assignment
- Need a larger or different vehicle for a family occasion or festive season
- Expect to drive more frequently for a particular period
- Want the flexibility of using a car without a long-term commitment
One of the biggest advantages of a short-term car rental is flexibility. You have the option to rent a vehicle according to your immediate requirements without committing to a lengthier contract. However, if you find yourself repeatedly extending your rental, it would be a lot more worthwhile to consider a long-term car rental package instead.
When Do I Consider Long-Term Car Rental Instead?
Going for long-term car rental in Singapore is when you require regular access to a vehicle for an extended period. Instead of purchasing a car, you pay an agreed rental rate and use the same vehicle throughout the rental period. This allows you to enjoy the convenience of having a car without taking on many of the costs and responsibilities associated with car ownership.
Long-term car rental may be suitable for:
- Daily commuters who regularly drive between home and work
- Families who need a car for school runs, groceries and everyday activities
- Working professionals who frequently travel to meetings or client locations
- Businesses that require vehicles for employees or company operations
- Drivers who want predictable motoring expenses without purchasing their own car
Generally, if you opt for a long-term contract of at least two years, you can enjoy a brand-new vehicle of your choice. Alternatively, you can also explore options to rent from a selection of preowned vehicles on a monthly basis.
Depending on your car rental package, expenses such as insurance, road tax, and regular servicing or maintenance are usually included. However, it’s always important to check the terms and conditions of your rental package to understand exactly what is covered.
Rent Instead of Buying
As mentioned in our previous article – “Why Renting is the Smart Choice for Both Businesses and Individuals” – car ownership in Singapore involves significant upfront and ongoing expenses. Apart from the price of the car itself, there are also other costs to consider including the Certificate of Entitlement (COE), registration fees, road tax, insurance, servicing, repairs and depreciation.
A common question for drivers considering a long-term car rental is whether renting would be cheaper than buying a car in Singapore. There is no simple answer, as the overall cost depends largely on factors such as the car model, rental duration, prevailing COE prices, financing costs, and the terms of the long-term car rental agreement.
However, one of the main advantages of long-term car rental is that you do not have to purchase a vehicle or manage many of the costs associated with car ownership yourself. Instead, drivers typically pay a fixed fee for each rental period, making it easier to plan and manage their expenses.
This can be especially beneficial given the high upfront cost of buying a car, which may include a down payment of up to 40%. For drivers who value convenience, flexibility, and financial predictability, and do not necessarily want to own a vehicle, long-term car rental can therefore be an attractive option worth considering.
How Do I Choose the Right Car Rental in Singapore?
Before you decide, consider these questions:
- How long do you need the car? If you only need a vehicle for a known, fixed time period, going short-term is likely to offer better flexibility as opposed to long-term rental.
- How frequently will you drive? Regular or daily drivers may benefit more from having a dedicated long-term rental vehicle.
- What is included in the rental price? Check with your account manager on your rental package, whether it includes insurance, road tax, servicing, maintenance, and/or roadside assistance.
- Are there any mileage restrictions? Some rental packages may have mileage limits or additional charges, so it would be wise to also check the rental terms before you sign with your rental partner.
- What happens if you need to end the rental period prematurely? Review the minimum rental period and early termination clauses, particular for long-term rentals so that you protect yourself financially from any early termination charges.
Ultimately, the best car rental option in Singapore depends on your individual circumstances and needs. Choose short-term car rental if you need a vehicle temporarily, and want greater flexibility or are unsure how long you will require the car. For long-term car rental, go for it if you expected to drive regularly for an extended period and want the convenience of having a dedicated vehicle without purchasing one.
The whole process was simple and efficient. Same goes with the collection after the rental period. I was originally considering 2 weeks rental over CNY but decided but a better deal renting for a month.
Alvin Fong
Rather than just comparing rental prices alone, consider the total package – including the rental period, insurance, maintenance, mileage limits, and also reviews given by others.
Finding the Right Car with Prime
Whether you need a car for the short-term, or are looking for something longer in Singapore, Prime & Section Car Rental offers a range of vehicles and rental options for your unique driving needs. With over 39 years of experience, our friendly award-winning team can help you understand the available rental packages, and help you with choosing the right vehicle that would suit your requirements, whether you are renting for personal usage, work, or business.
Reach out to us today to find out more about our rental packages!