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Car insurance forum singapore

Car Leasing is the best alternative to buying, especially if you do not intend to have a car in Singapore for more than 5 years and do not intend to tie up a huge amount of cash into the car. The recent government ruling on car loans, where a would-be owner have to fork out 50% of the car price upfront has priced many people out of the market.

Hirva Car Rental Singapore, offers standard and customized leasing/rental packages to suit your needs.

Our standard package includes:

 Monthly Rental: 
Monthly Rental is renewed on a monthly basis. This rental scheme offers a great deal of flexibility for customers who cannot commit to a long term agreement due to their nature of work or for other reasons.

Long-term Car Leasing Agreement: 
The minimum contractual period for a long term agreement is 12 months for existing cars and 24 months for new cars. This is subject to the availability of make and model of cars.

Our standard rental package includes:

    • Road Tax and Radio Licence
    • Vehicle Insurance
    • Regular monthly maintenance
    • Unlimited mileage
    • Car replacement in the event of breakdown and when the car is in the workshop for servicing
    • Insurance against fire and theft
    • Non-waive able excess (NWE)
    • Malaysia Surcharge

Contact Us for booking now or alternatively, email directly to zul@hirvacarrental.com.

More on long term car leasing:

If you are a professional relocating to Singapore for work purposes and need a car to move around, the rule of thumb is to rent or lease a car if your stay here in Singapore is less than 5 years. However, if you plan to stay for more than 5 years, than it is financially prudent to buy. The rate of depreciation for cars will continue to worsen as the Singapore Government has pledged to make cars less affordable by increasing upfront taxes gradually over the forthcoming years. The financial loss to car owners at disposal time will no doubt, be colossal!

A rented or leased car would offer a peace of mind generally, because the rental company bears all the upfront payment (50% of car price now) in purchasing the car, depreciation and risks, including insuring the car, maintenance, repairs, paying for the road taxes and ensuring the availability of a courtesy car and a 24-hr roadside assistance program.

However, it is important that you pick a bona-fide rental company. In recent years, there has been a proliferation of unauthorized parties offering cheap rental cars without the proper insurance cover, and you as a hirer, risks both jail and fine if caught.

Tips on these “grey” (illegal) rentals:

“Grey” rentals are typically privately registered vehicles and is only insured for social, domestic and pleasure purposes with its owner as the primary insured.

In Singapore, a rental car is expensive to insure and it is almost near impossible to insure one car because insurance companies would prefer not to deal with an individual on an ad-hoc basis, as the risks involved are high.

A bona-fide rental car is usually owned by a car leasing company and is classified by the Land Transport Authority (LTA) as a private hire vehicle. This car is required by law to be adequately and properly insured for the purposes of the vehicle’s use.

A social, domestic and pleasure purposes insurance does NOT cover car for hire or reward. Violation as such means falling foul of the LTA’s regulations which could result in prosecution, fines or jail.

Such a clause is typically found in an insurance schedule, which regulates the use of the insured car:

“LIMITATION AS TO USE: Use only for social, domestic and pleasure purposes and for the Insured’s business. The policy does not cover use for hire or reward, racing, pace-making, reliability trial, speed-testing, or the carriage of goods (other than samples) in connection with any trade or business, or use for any purpose in connection with the Motor Trade. Warranted that this policy does not cover use for tuition of any Learner Driver.”

Naturally, the consequences is insurmountable if the car is involved in a fatal accident involving a third party or yourself, or the unthinkable, your family and loved ones.

Lessee of grey rentals has no recourse under Singapore’s consumer laws too. Why put your career on the line for something that saves you at most, a few dollars per day.

If you are still unsure whether to rent or buy, you can write to us via email:zul@hirvacarrental.com or phone: +(65) 6693 1942 (and ask for more advise from any of our sales personnel). Either way, we would be glad to help to make your stay in lovely Singapore a safe and memorable one.

First of all, I think it is important you pick a bona-fide car leasing or rental company.

Hirva Car Rental is a veteran in the car rental and leasing industry. We proudly count some Fortune 500 companies as our clients.

Here in Singapore, before a car can be used as a rental vehicle, it must be registered as such with the government’s car registration agency. Many new car dealers (they are often grey importers) pass on their sale stocks as rental vehicles without proper (rental) registration. And that’s an offence here in this country. Furthermore, it is very expensive to insure a car that is used for rental purposes and insurance companies don’t deal on an ad-hoc basis with parties who are not in the business of operating a bona-fide car rental or leasing business.

Singapore is a peculiar case because leasing is often another term used to describe long term or contract rentals. Cars which are privately purchased with a loan secured under the name of the owner and repaid by monthly installments are really known as hire purchase (HP). The other form of leasing could be also a type of rental which offer the hirer the option to purchase the car at the end of the contract. The latter is not widely practised in Singapore although it is a more popular way of acquiring a car in America. Normal rentals are more attractive to transient residents because it allows the use of a car without capital tie down and the hirer simply walk away at the end of the contract.

Buying a car on a hire purchase arrangement can be feasible and you may need a local guarantor although we would strongly advised you against buying a car in this manner if your stay in Singapore is less than 5 years. Especially if you are on a work contract or work visa of sort. Alternatively, if you must buy a car, try paying cash for it as it means you will lose less financially when the time comes to sell on.

MPVs in Singapore that are classified as full-size are really only of mid size proportions. Compared to MPVs in America such as the Chrysler Voyager, Toyota Sienna and the Honda Odyessy (North American version), the largest MPV you can get hold of in Singapore is either the Toyota Previa or the Chrysler Voyager. But these two are expensive. Others although smaller, is cheaper to rent or buy, like the Nissan Presage 2.5, Honda Odyessy 2.4 (Asian version), Mitsubishi Grandis 2.4 and the Toyota Picnic 2.0. The other true full size MPV is the Kia Carnival 2.5.

If you are on a budget of SIN$1000 – SIN$1500 per month, the only alternative we can think of is to buy on an HP arrangement. For the size of this money, you probably can get to look at new 1600cc – 2000cc sedans or MPVs. But then, of course, you have to buy your own insurance and tax for the car, etc.

Renting a car means you don’t have to worry about registration fees, additional registration fees or excise duties and disposal. Our rental cars come with full insurance and are fully taxed. We take care of all maintenance and repairs and we would provide a 24 hours breakdown recovery service to the hirer. A replacement car will be available if the original vehicle is taken off the road. All these for a fixed sum every month for the duration of the rental contract.

Rental is a wiser choice and gives you greater flexibility than owning a car. We can “build” a diplomatic clause into the contract. Usually, a diplomatic clause is available on contract 24 months or longer, though this is not applicable for brand new cars. It allows the hirer to return the car anytime between the 13th and 24th month period by the forfeiture of 2 to 6 months’ rental as compensation dependent on the price of the car. No termination is allowed during the first year of the contract.

At this company, we appreciate your business. Tell us what we can do for you. If you are not satisfied, we are not satisfied. If you need further assistance, please feel alright to phone or write anytime. We will help.

One of our work objectives is to empower new residents with accurate and knowledge facts – helping them to shop safely for a rental car in Singapore. As a result, we have strong commitment to communicate through articles such as this. In addition, we encourage all my friends/ clients/ business associate to contact us when they encounter any questions on, or related to their ground transportation needs.

Theoretically, you can “lease” a car from any private individual. This is LEGAL as long as the vehicle ownership has been transferred to you (during the entire lease period) and the insured is yourself.

But it is illegal to “rent” a privately-registered car in this country.

The followings are some pointers regarding the differences between leasing and rental.

DIPLOMATIC CLAUSE:

  • Leasing The inherent inflexibility of an operating lease means early termination is often not allowed. Lessee (i.e. you) must bear the entire costs of the lease.
  • Rental Diplomatic clause can often be built into the rental contract offering the hirer the option to turn in the car earlier with little financial penalties.

GUARANTOR:

  • Leasing Required if the lessee is a private individual.
  • Rental As the car rental company owns the vehicle, the hirer doesn’t need a local guarantor to rent a car.

RETURN ON ASSETS:

  • Leasing A leased car appears as a non-income generating asset in the books, affecting the performance of your assets.
  • Rental A rental car appears as an operating expense in the books.

DOCUMENTATION:

  • Leasing The complexity of the operating lease often means the lessee has to sign realms of documents subjecting him to legal terms and conditions.
  • Rental A Letter of Acceptance and a set of rental agreement are all that is needed to rent a car.

LIABILITIES:

  • Leasing As the registered name of the leased car, the lessee bears all liabilities on the car.
  • Rental Hirer has no liabilities on the hire car except the insurance excess.

OWNERSHIP:

  • Leasing In addition to the transfer fees, the lessee has to sign the power of attorney to transfer the ownership of the car (to a buyer or back to the lessor of the vehicle) at the end of the lease agreement.
  • Rental Hirer simply returns the rental car and walks away or signs up for a new rental on a new car.

INSURANCE:

  • Leasing Lessee buys insurance for the car. Insurer may refuse future insurance coverage or impose high excess if lessee has poor driving records (e.g. accident prone) while driving on his or her own insurance policy.
  • Rental The rental company is responsible for insuring the car.

Check out our leasing prices in the excel workbook below (Currently under revision, please bear with us during this period. You might want to contact us directly for the revised prices).

Select any car being advertised in any website for sale and input the details. You will automatically be given an idea of the price for the cars selected. For leases less than 2 years and cars that cost more than $450,000 you might want to email us directly at zul@hirvacarrental.com for more information

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Frequently Asked Questions

If you can't find an answer to your question below, you may search it on the MoneySmart Forum.

How do I get a car loan?

Applying for a car loan at a bank/financial institution is the usual route that most buyers would take,even if you are buying a second hand car. You can also apply for an in house loan with cardealerships, and these have varying conditions so it is best to check with the dealership on thosedetails.

How much can I loan from a bank?

This quantum is very much dependent on the OMV (Open Market Value) of the car you arepurchasing. The regulation applied is that if your cars OMV is $20,000 and below, you can qualifyfor a loan of up to 60% of the purchase price (including the COE and related taxes). If your OMV is above $20,000, them the loan amount will be 50% of your purchase price (includingthe COE and related taxes). The rest of the purchase price has to be raised in cash.

Do I have to search for my own car insurance?

In some cases, the dealership you are purchasing the car from will include services that assist youin applying for car insurance. They will usually recommend the products that work with the most orhave commercial agreements with. Comparing various quotes independently will give you a betterpicture of what is available in the market, and help you make an informed and cost effectivedecision.

Is there a difference between Parallel Importers andAuthorized Dealers?

You may find that prices of cars from Parallel Importers may be cheaper than Authorized Dealers,however services provided and also warranty related conditions may not be as attractive. You mayalso be able to receive your purchase faster at an Authorized Dealer due to them having morestock and availability options.

What is the difference between a PARF car and a COE car?

Here's the main reason why PARF and COE car prices differ:

  • A PARF car hasn’t been de-registered before its 10-year depreciation period has ended.This makes it eligible for both the COE and PARF Rebate, which ranges from 50% – 75%of the Additional Registration Fee (ARF) paid on the vehicle.
  • A COE car is not eligible for the PARF Rebate because the owner chose to pay the Prevail for 5 or 10 more years more instead of de-registering theing Quota Premium (PQP)vehicle. This means that upon de-registration, you’ll only receive the COE Rebate.

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