TWO AL­TER­NA­TIVES TO BUY­ING A NEW CAR

Simply Her (Singapore) - - Life Made Easy | Money -

1 CAR LEAS­ING How it works: You rent a car for at least one year. Pros: You don’t have to cough up a 50 per cent down pay­ment, or pay for road tax, insurance and main­te­nance. A re­place­ment car will be pro­vided should you need one. At com­pa­nies like Eurokars Leas­ing, there is also no mileage limit. Cons: If you ter­mi­nate your lease pre­ma­turely, you’ll have to pay a penalty and maybe even the re­main­ing bal­ance of your con­tract.

In the long run, car leas­ing is more ex­pen­sive than hav­ing your own car. For ex­am­ple, leas­ing a brand-new Mazda3 from Eurokars for a min­i­mum two-year pe­riod will set you back $2,160 a month, which comes up to $51,840 – roughly half the cost of buy­ing it. But for those un­will­ing or un­able to come up with the 50 per cent down pay­ment, leas­ing is a way to bide your time.

2 PEER- TO-PEER CAR SHAR­ING How it works: A rel­a­tively new con­cept here, it in­volves rent­ing a car from a ve­hi­cle owner. At iCarsclub, the prices – which vary ac­cord­ing to the make and model, and in­clude fuel charge and insurance – start from $45 a day. “We have a Chrysler that’s rent­ing out for $80-$90 a day. That’s very cheap,” says man­age­ment ex­ec­u­tive Clif­ford Teo, who adds that typ­i­cal uses for th­ese cars in­clude church out­ings and tak­ing el­derly par­ents to hos­pi­tal. Pros: You don’t have to pay road tax. Also, fuel use – pegged at 30 cents/km – is based on mileage, so you pay only for what you use. And it’s con­ve­nient. At iCarsclub, you can book a car with your smart­phone and you’ll be sent an SMS, which you use to un­lock the car at its park­ing lo­ca­tion. Cons: The cars can only be rented from 7pm on Fri­days to 7am on Mon­days, so if you only need one for the fam­ily on week­ends, this is an op­tion to con­sider.

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