Most of these packages would target the middle-income group, those who do not want to put up a large sum of money upfront to buy cars. “Usually a leasing package will involve two months’ deposit and one month of upfront payment for the lease. Upfront may be about S$4,000 to S$6,000 as compared to perhaps S$40,000 to S$50,000 that you need to fork out to buy a new car.
Leasing can be a rather attractive option as one does not need to pay for insurance, road tax and maintenance of the car. A replacement car can also be provided in the event of an accident. Prices for leasing used cars are typically lower, with some starting from S$1,200 per month.
MKM Car Leasing, which leases cars for a minimum period of one year, aims to offer the perfect fit to the cash-strapped. Its business manager Mick Teoh said: “We are seeing a lot of customer queries and also we also trying to offer slightly older vehicles – for example, 2006-2007 models to Singaporeans who are a little bit of budget conscious but the vehicle itself is actually quite well maintained.” The company expects business to grow by 10 to 20 per cent in the coming months.