Long Term Car Rental Or Used Car | Which Is Better?

More than a luxury, cars are essential in everyday life. In reality, apart from owning a home and property, people save and invest money to buy a new car. But how about those people who can’t afford brand new vehicles, yet their work requires them to have one?

That person has two options: buy a second-hand car or have a long term car rental in Singapore. Money-wise, both options are much more affordable than purchasing brand new cars. One of the drawbacks of a brand new vehicle is its hefty upfront cost, and second-hand andcar rental in Singaporehave the upper hand in this department.

However, between the two options: purchasing a second-hand car and having to rent a car, which one is the best for you?

Purchasing Used Car VS Long Term Car Rental in Singapore: Which Is The Best For You?

Perhaps, many think that these two options are neck to neck concerning their advantages and disadvantages. So this article will help you weigh their benefits and drawbacks by setting up categories. These categories are costs, vehicle selection, car condition and quality, and usage limitations.


Whether you rent a car or purchase a second-hand one, rest assured that you will save money compared to buying a brand new vehicle. But if the comparison is between acquiring a used car rental and a long term car rental in Singapore, which one is cost-effective?

Second-hand car

Several factors affect the price and overall expenses of owning a used car.

●     Depreciation rate

The price of a brand new car depreciates rapidly, especially in the first three years. However, you don’t have to worry about depreciation when buying a used car. Typically, the depreciation rate slows down once the vehicle hits four years old. Most second-hand automobiles in the market are three years old and above, meaning the depreciation rate is slower.

●     Financial arrangement

Many car dealers fix financial arrangements when it comes to used cars. The length period and interest rates vary, depending on the agreement.

●     Insurance and warranty

Private purchase of a used car may not include a warranty and insurance. Generally, used vehicles that are of newer models have the same insurance rate as brand new vehicles. However, used cars that are of the old model can be insured less.

●     Maintenance

            The driver has to shoulder regular maintenance costs.

Long-term car rental

Several factors affect the price and overall expenses of long term car rental in Singapore.

●     Depreciation rate

If yourent the latest carmodel, expect the price to be high. However, you never have to worry about the depreciation rate. It is unlikely to affect you while using the car.

●     Financial arrangement

Car dealers also offer flexible financial arrangements in a car rental in Singapore. However, its drawback is you are constantly paying unless you decide to buy your rental car once the contract ends. If not, you can decide whether or not to enter another contract and financial agreement.

●     Insurance and warranty

            Drivers can buy insurance and warranty for the leased car from the car dealers.

●     Maintenance

One of the advantages ofcar rental in Singapore is the dealers shoulder the maintenance fees. However, drivers pay for usage fees and penalties, such as excess mileage usage and wear and tear charges.


Second-hand car

The vehicle selection is quite limited in the second-hand car market. Most of the used cars are three years old and above, yet it is still possible to find a second-hand yet newer model car.

Long-term car rental

One of the best benefits of long term car rental in Singapore is its vehicle selection. You canrent the newest released carin the market. At the same time, you either upgrade your current car rental in Singapore into the latest model after the contract expires or downgrade to an older model. It only means you can change cars annually or biennially, depending on the contract.



Second-hand car

The quality of used cars depends on where you purchased them. Private purchase does not guarantee the validated condition of vehicles. On top of that, these cars are already years older.

However, legit car dealers are transparent about the history of the used cars they sell. They also maintain the upkeep of the vehicles while they are still in their care. Cars from legit dealers are good to go.

Long-term car rental

Expect the condition of vehicles from a car rental in Singapore to be of a high standard. Most of them are even brand new.

They also maintain the upkeep of each. You worry less about the condition and quality of the automobile when you rent a car from a legit dealer.


Second-hand car

When you buy a second-hand car, you own it. Meaning you have the liberty to bring it anywhere without worrying about the mileage limit.

Moreover, the owner can upgrade the car, its exterior and interior parts, and repaint it.

The driver can decide whether to spend money to cover minor scratches and dents on the car.

Long-term car rental

One of the drawbacks of car rental in Singapore is that it has a handful of limitations.

For example, a contract may state mileage usage for the rental car. Exceeding the mileage usage has fees. Scratch and dents also have fines.

Lastly, you can’t upgrade car parts.


If you consider the cost, used cars gain the upper hand over rental vehicles.Car rental in Singapore may not be as cost-effective in the long run.

In terms of vehicle model selection, it is much better torent a car from dealers than purchase an old one. Car dealers have an extensive selection of car rentals, from the latest models to the oldest.

In the car condition and quality department, long term car rental in Singapore gains the point. You can guarantee that cars are well-maintained. However, used cars are not far behind, especially if you purchase them from a reputable car dealer.

Lastly, there is no better feeling than driving your car. Renting a car offers you several usage limitations.

Buy a used car orrent a car? The final decision is yours.

CDG Rent A Car

CDG Rent A Car provides well-maintained and high-quality rental cars in Singapore. Do you need a car? Visit CDG Rent A Car today.