Lumens Auto to improve the safety of PHV Drivers

Should I Buy or Lease a car for PHV?

Should I Buy or Rent a car for PHV?

There are often different costs and factors to consider when a driver decides on whether to rent or buy a car for his PHV career.

Reasons to buy a car

You can choose what you want to drive. When you buy a car you are not limited by the models that leasing companies have in their inventory. Additionally, you can customise your car however you want. Custom car wraps, neon LED lights or an exhaust pipe that can wake the whole neighbourhood up when your engine starts. All these can be yours when you are the owner of the car. Furthermore, in the long run, buying a car will be cheaper than the cost of renting. However, owning a car might come with certain limitations when compared to leasing a car.

Reasons to Rent a car

Whenever you purchase a car, some dealers expect you to provide a downpayment of 10% to 40% of the car’s full price. With that, you will need to put aside a considerable capital amount for the cost of insurance, road tax, maintenance, and repairs. However with leasing, drivers only need to place a considerably smaller deposit and they can drive off with a car on the same day.

In addition to having a small deposit fee, some leasing companies allow you to switch car models mid-contract if there are any major issues with your car. This is so that you can keep your source of income without having to pay the price. When leasing a car long-term, you do not have to worry about servicing and maintenance. At Lumens Auto, they even have a dedicated relationship manager who will handle all of your queries regarding your car and your journey to achieving diamond tier on Grab or elite in Gojek.

Factors to consider

How much do you drive

At about 10,000km a month, you should be expecting to send your car for maintenance every month. This brings us to the point of repairs and reinstatement costs, when returning a leased vehicle, it is your responsibility to return the car back to the company as close to the original physical state you received it in. Meaning, no scratches, dents, and or cracks if not your deposit at the beginning might be forfeited. Some experienced drivers would be more than happy to share with you their experiences with hefty reinstatement fees from different leasing companies.

This ultimately this boils down to your preference and also which costs you are willing to bear. Because if you plan to sell your car before 5 years is up, the depreciation factor would hurt your chances at fetching a good price for your car; Hence, this makes renting a car from a leasing company so much more worth it.

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