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In comparison with most other countries in the world, it’s not difficult for expats to be approved for leasing a vehicle in Singapore.
However, like any other major purchase/decision in life, it’s a good idea to be prepared, so as not to waste time or money.
ALERT: Before we get to the 5 step process, we need to warn you that cars in Singapore are very expensive. Singapore ranks as the most expensive country to own a car. In many cases three times more expensive than most other countries.
The main reason is Singapore is physically small. So the Singaporean government is using pricing/taxes to limit everyone from owning a car. Car owners have to purchase a certificate of entitlement (COE), which can cost up to SGD 50,000 to SGD S70,000 annually! In addition registration fees, insurance, 7% GST and excise duty of 20% will have to be paid.
BEST OPTION: Due to the high prices on ownership of a vehicle in Singapore, it’s a much better option to lease a car for the duration needed, instead of purchasing a vehicle.
The good news is that there are leasing companies in Singapore who are specialized in assisting foreign nationals with financing their vehicles. But you will then need to be able to provide them with the following documents:
Driving in Singapore for temporary visitors
Tourists or temporary visitors to Singapore can drive using a valid foreign license and an International Driving Permit (IDP), issued by the authorities in your home country. In general, international permits are issued by the authorities issuing driving permits, although other bodies such as the Automobile Association (AA) might also be able to deliver international permits. Official English translations are required in the absence of international permits. If you come from one of the ASEAN states (Association of South-East Asian Nations), you can drive in Singapore without an international permit. For further details on how to obtain translations or international licenses, you need to contact the authorities which have issued your current license, as these tend to vary and change over time.
Driving in Singapore for long term residents
After 12 months in Singapore, it is compulsory to obtain a local license. Permanent Residents, students, and long-term residents need to apply for a local driving license. When applying, you will be required to prove the legitimacy of your stay; this can be done by providing details of an employment contract or details of your course of study. New citizens and permanent residency holders need to convert their foreign licenses within three months of obtaining their new status.
To apply for a local license, you will need to pass the Basic Theory Test (BTT) in one of the three approved schools in Singapore. If successful, the next step is to exchange your national driving license for a local license in a Traffic Police Driving Test Centre. Documents required include:
Note: Information may not be up-to-date. Please check official government information for the latest laws and regulations.
How long do you need the car?
Car lease terms in Singapore start at 12 months, so if your need is for a shorter period of time a long-term rental (sometimes called a mini-lease) is your better option, if not opting for MRT, Singapore’s very efficient public transportation.
What is your budget?
The first thing any car leasing specialist will ask you is what is your budget. So have a good idea of what you are willing to spend a month on leasing a car including the insurance cost.
When do you need the car?
Delivery times vary a lot on new cars, so you want to be out in good time to ensure that you can get the car you want at your desired time. The usual process time is one to two weeks if the car is available in stock. But factory orders may take as long as three to six months.
On readily available cars the delivery time from signing the lease agreement is 2–4 weeks for new cars and 2–6 days for used vehicles.
Typical lease/payment terms
Payment due at delivery usually consists of Just a 1-month refundable deposit + 1-month advance rental payment.
Auto Insurance
fully comprehensive insurance is included on most lease offers. However, be sure to read the print in small to make sure you and the passengers are covered in case of an accident.
Terminating the lease early
If you have to return your vehicle earlier than expected, the lease agreement will state exactly how any remaining payments or penalties are calculated. So be sure to consider the termination terms when comparing offers.
Vehicle registration
The leasing company will handle the vehicle registration as part of their service.
A company that can assist is ExpatRide International. They have experience with assisting expats across the globe and service many Fortune 1000 companies’ employees in Singapore.
ExpatRide can assist with most vehicle makes and models available in Singapore such as Audi, Bentley, BMW, Chrysler, Ferrari, Fiat, Ford, Genesis, Honda, Hyundai, Jaguar, Jeep, Kia, Lamborghini, Lancia, Land Rover, Lexus, Lotus, Maserati, Mazda, Mercedes Benz, Mini, Mitsubishi, MG, Nissan, Opel, Peugeot, Porsche, Renault, Rolls-Royce, Skoda, Smart, Subaru, Suzuki, Tesla, Toyota, Volkswagen, and Volvo.
Their service covers all areas of Singapore, such as Hougang, Tampines, Pasir Ris, Yishun, Choa Chu Kang, Toa Payoh, and Bukit Batok.
Most roads: 50 km/h unless stated otherwise
School Zones / Silver Zones: 40 km/h
Expressways: 80 km/h or 90 km/h
The law states that a person below 1.35 m in height is not allowed to travel in a motor vehicle unless they are properly secured by an approved child restraint appropriate to their height and weight, or a body restraining seat belt when seated on a booster seat cushion or when using a seat with an approved adjustable seat belt.
The minimum age to drive a motor vehicle and getting a Qualified Driving Licence (QDL) in Singapore is 18 years old.
You must have both a valid foreign driving license and an International Driving Permit (IDP) to drive in Singapore. For visitors from ASEAN countries, the requirements are more simplified, allowing you to drive without an international permit.
Don’t do it! Singapore’s legal drink-driving limit is strictly enforced at 0.08% blood alcohol content.
TPO Insurance is mandatory in Singapore. TPO provides coverage for other people when you cause damage. When you cause an accident, the insurer pays for anything that needs to be fixed for the person whose car you hit, but you have to pay your own damages. Moreover, TPO is paid only when your fault has been proven.
Using your phone while driving is illegal in Singapore.
Seat belts are mandatory in Singapore.
Expat Car Leasing & Financing involves many specific phrases that can seem complicated. Below you’ll find an explanation of many common expressions used at car dealerships.
This is another way of saying down payment. This is interest-free money that goes towards the price of your car and will reduce your monthly payments. The cash amount you put in to initiate the lease results in a reduction of the capitalized cost.
A lease that doesn’t require the consumer to buy the vehicle at the end of the lease, or to pay any difference between the residual value and market value. A closed-end lease is the most common type of lease.
This is the amount of value that a vehicle will lose during the lease period. The depreciation is the difference between the original price and how much it’ll be worth after the lease is over.
When a customer decides that they want to end the agreement before it was originally arranged. The Leasing company is able to charge a fee that will cover themselves in this circumstance.
When you sign a leasing agreement, you’ll decide on a mileage limit. If you later go over the mileage limit, you’ll normally have the pay an excess mileage charge.
Lease plans have requirements on the condition of a leased vehicle when it is returned. If the car is damaged or in rough condition, there may be a charge.
Leased vehicles usually have stringent coverage requirements and therefore may cost more to insure than your usual “owned” vehicle. However, in many countries, insurance is included in the monthly payments.
This is the period of time in which you’re able to use the vehicle and the period of time that you will be paying on a monthly basis. The lease terms may vary from 12 months to 60 months. Generally speaking, the longer the lease term, the lower the monthly payments.
The MSRP is the list price of the vehicle.
In many countries, maintenance is included as part of their monthly payments. This covers any servicing the vehicle requires, including repairs, new parts, tires, batteries, and exhausts.
This is the agreed amount of money that the customer has to pay to the leasing company on a monthly basis. These payments last until the end of the contract period, although they can be paid off early if the lessee decides that they want to.
A lease that requires the consumer to pay the difference between the vehicle’s residual value and its actual value when the lease ends. This amount is called deficiency. Conversely, if the car’s value at the lease end exceeds the residual value, the consumer can purchase the car and collect the difference on resale
The opportunity for the customer to buy the car at the end of the lease. The price to buy the vehicle is stated in the lease contract and usually is equal to the residual value.
The car’s wholesale value at the end of the lease is projected at the beginning of the lease. Higher residual values translate to lower monthly payments but increase the cost to buy the car at the end of the lease.
The amount customer has to pay at the end of a closed-end lease if they choose not to pay the residual value and buy the car. This fee can include administrative charges, any penalties, the dealer’s cost to prepare the car for resale.
For any questions, feel free to email cars@ExpatRide.com or visit www.ExpatRide.com
Assisting expats with their transportation needs – We are ourselves expats and want to help other expats succeed via our services and our own expat experiences.
Need assistance with leasing a car? Let ExpatRide lead the way
Contact us at CARS@ExpatRide.com for more information
All major cities and all smaller cities, we’ll be there for you:
Singapore,Hougang,Tampines,Pasir Ris,Yishun, Choa Chu Kang,Toa Payoh, Bukit Batok and the list goes on…
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