Leasing VS Buying An Electric Car in Singapore 2024 (cost breakdown) |
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- Опубликовано: 5 май 2024
- We decided to lease a car instead of buying a new one! (and it's electric!) In this episode, we talked about the cost breakdown of leasing a car in Singapore as well as our honest review of the new ERP 2.0 OBU that we installed!
Do drop us a comment if you have any questions and subscribe if you haven't!
Much love,
John & Pat
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Our Socials:
John - / johnathanchua
Pat - / patrinathy
#johnpatcross
Hello I would like to reiterate that I am not encouraging you to rent or even buy a car! As mentioned in the video, its for people that want to lease short-term to try out EV esp if you have range anxiety.
Also let me math this out k? Lets say lease for one year as per my current plan.
Average Price taking into acct fluctuating COE - $170K
Downpayment 40% - $68,000
Monthly Installment w Interest - $Approx 1,700 (depending on bank)
Other stuff:
Annual Insurance - $1,700 (Was what I paid when i bought my first car)
Annual Roadtax - $1,300 (Was for my Suzuki Swift, might be more for SUV)
Annual Petrol - $5,000 (Once again this was my suzuki which quite fuel efficient I Think)
Maintenance - $2,000 (Average of my 3 years usage - change tire, suspension, servicing, etc)
Average per month: $825 (Bear in mind that Jap models are cheaper to maintain)
Total per month: $1,700 + $825 = $2,525
EV Charging much cheaper and Jack cars got rebate.
So basically, I would have to pay $350 more per month if I rent. But I don't pay $68,000 in downpayment. And rental includes servicing, roadtax and insurance)
This was my math based on my experience. And I'm not even recommending this to you. So please don't doubt my character when I'm just sharing my experience with you. Cars are extremely expensive these days.
- John
cc: @mulelos
Just a thought: petrol should be excluded since you are only comparing between buy or lease the same EV.
@@wong339 Yeah you're right. I actually was looking to add EV charging into the equation instead. But I also dunno the damage yet. hahah. The website says save $3K a year la. But must test first.
@@JOHNPATCROSS Bro don't worry we dont doubt your character, you are just innately a good influencer 😊
Actually I think I need to burst the lease bubble that was highlighted by John. Leasing makes sense, ONLY if you are looking at short term, like 2 to 3 year MAX over the span of 10 years. Meaning you drive 2 to 3 years, and thenNOT drive for next 7 to 8 years.
2.8k for 1 year equates to 33.6k a year. Drive for 3 years and it's 100k. You're paying 100k to drive 3 years.
The cash poor will choose lease because "hey, I don't need to downpay". You're right, provided you don't drive for 10 - X years.
Otherwise, downplay and drive your own car at at price 170k for 10 years (17k/year) out benefit leasing a car for 10 years for 330k (for a BYD ATTO). Can buy 2 BYD Atto already.
330k I can buy much better EV or MUCH MUCH better ICE cars than BYD Atto.
Makes you think about the equations again don't you ;)
your math is definitely right. 100k might as well buy new car since coe is already around 100k. and use it for 10 years
See my pinned comment!!
@@JOHNPATCROSS okok saw your ting ting bell notification~
Don't triggered leh bro, where got until doubt your character. I'm just here for a healthy convo to save your money. We agree that car ownership is expensive, which is why we gotta scrutinize and justify the cost right?
Right off the bat, before we swing into the number crunch, a few things I want to point out about the reference figures which you mentioned:
You shouldn't include $2000 maintenance (3 year average) into your calculation as it is a wrong reflection of maintenance cost on a new car. You drove a rather problematic used swift, that caused you about $6000 in repair. That is, quite alot. Suspension don't usually require a change. Tires change happens every 3~4 years. Depending on your wear rate, I give you discount, change every 3 years (720 for 4 pcs of 17" tires / 3 years = $240 per year / $20 per month . Yearly servicing twice, I give you mid range; $250 per typical minor servicing(oil/filter change/checks), $500 per year / $41 per month. EV already not much servicing, so the estimation has to be lower.
170k - 40%($68k) downpayment = $102,000
$102,000 with 2.78% interest over 7 years = $1450 monthly
Insurance monthly benchmark = $141 (Insurance is unusually high, unless you're single/young/langa before)
Roadtax monthly benchmark = $108 (Road tax is unusually high side given its a swift (swift sport?) 1600cc, but can be expected for EV with higher BHP)
Petrol = $416 (You might save money from EV charging as compared to petrol. Perhaps you can update again.)
Given high roadtax and low charging cost, I will take your figures as is, assuming they offset each other.
Maintenance = $62, from my explaination above.
Total makes out to be $2180/month, is very generously high already and can be lower if your charging costs per month is lower than $416 and your roadtax and insurance is revised.
You're paying minimally $700 more /month at $2.8k more despite servicing/roadtax/insurance included.
$700 over a year is $8.4k and over 10 years is $84k (for leasing vs owning).
We're looking at a timespan of 10 years. If today the topic is to drive a car for 10 years, the cost effective answer is to save for the downpayment and then own the car for 10 years. Not lease the car for 10 years. Which was what I meant.
If today the topic is to spend additional 8.4k on top of the original costs, to try an EV for a year, then the next question is,
Is it better to pay ($2800 x 12 = 33.6k)
or
Is it better to pay the downpayment of $68k, pay 2100 monthly, then sell off the car at a 17k depre a year later and potentially get back 170k - 17k = 153k (realistically look at 150k~ for buffer of market conditions). Would you be able to get investment returns of close to 15k had you invested the $68k for a year?
or
Is it better to buy an ICE instead?
Objectively speaking (i'm not against you), this is the current car ownership situation in singapore. Alot of people obviously cannot afford a car because they are not cash rich to downpay, but yet they're willing to literally waste additional money per month to own a car. That is how leasing companies grew larger.
Lease car = burn money, the longer the duration the more painful the burn.
Very informative! Like this kind of content!
5:15 The old OBU sticks on our windscreen for years with adhesive and din ga lao before. The New OBU now placed is at a lower temperature cannot use adhesion?...
Be careful of leasing. The problem comes when you return the lease and they will charge you for any blemish to the car 🙃 how do you calculate that leasing is cheaper? $1600 monthly instalment, $1800 annual road tax, $1700 annual insurance. EVs have little to no maintenance. So that’s $35 k lease vs $23k own for the first year. Means you need to earn a 24% return on investment per annum on the 50k down payment saved to break even?
@@zhihao5750 i also thinking is my math wrong or his math wrong, how would leasing be more worth it than his other options lol
Congrats! Will never understand the math part to own a car in Singapore. But happy for you guys. ☺️
there is no need to understand all the logic for you will forgo all of them when u enter the showroom, get inside e car and enjoy the 'buy me' smell...
Pls post video as fast as possible! Tq 😂
Wow 35k for a 12 month lease seems insane to me (I live in NZ where 35k gets me a brand new Honda Civic) but I guess that’s just how car ownership in Sg works
As per what other commented, how can leasing be more worth compared to buying own car, it is just like the logic of renting vs owning your own flat.
I hope you would come out with your next video to clarify on this, people would be mislead by this video and jump straight in on leasing.
That is the purpose
Owning a car in Singapore is insanely expensive and we are well known for being the most expensive in the whole world to have car ownership. But have you ever calculated, instead of buying a car or leasing one, paying for ride-hailing services, as compared to paying monthly season parking, parking elsewhere(Daily commuter), fuel (petrol or electric), road tax, insurance, maintenance, random traffic offenses (summons) etc...overall is it still worth owning a vehicle in Singapore? 😅
Hmm 2.8 by 12 months seemed like around 35k for a year experience. In comparison that suzuki swift for 30k with 3 years to spare seemed more affordable. But oh well its EV 😂
Confirm ah. Haha. If can find another 30K car I buy bro.
Got 35K, but now is left 2 years only compared to 3 years 😂. The new car appeal is stronger for sure@@JohnathanChuaa
@@CrazyPaperSun Last time my suzuki - 30k for 5 years sia. hahahah.
Algoooooooooooooo
To be honest the maths described is not that accurate, it should be on using the depreciation of owning a car vs what you pay to lease the car for a year. As the other costs like parking you would still have to incur be it lease or owning.
It makes more sense to take the MRT train or bus to work to save money save the environment
Yes of course. MRT and bus is still most cost effective. That’s why John say he’s not asking anyone to consider having a car. But if you are, this is one option to consider before owning an EV.
- Pat
since when do majority of private car owners do?...haha
Blue seat and red guitar string side door storage looks very or biang...
as much as i would very much like owning a car, i control myself not to after scrapping 10 yrs ago. the cost doesnt make sense anymore. u pay so much for a low range car. currently i spend probably less than 300 in total per month including grab. even though i can afford to buy it but really heart pain thinking about the expense monthly. somemore its not like netlix can cancel anytime u dun need it and resume when needed....
Owning a car in SG won’t ever make sense unless you need to ferry a lot of people everyday (big family). It’s a luxury in life that we can do without luh. Like you said, it’s not like we can cancel anytime. So we chose to lease an EV (instead of buy) for 1 year and see if we really still want to have a car after that. If the cost of EV is lower than expected, and still need a car, then I think we will buy.
- Pat
yea lease to try out is the right approach but not lease for the long term. no downpayment is attractive but it could be a costly temptation in the end due to the high total price paid for long term lease =)
lol "cars dont appreciate" -> for any place in the world except SG, this statement holds true. if you had bought a brand new car with 10 years coe in 2018/19 at 30k for cat b, the car value would have appreciated at least 200% over the past 4-5 years with the coe appreciation (30k->160k) due to PQP valuation despite lease decay. thats faster cap. appre. than if you owned a property even.
Also, try to remove your echo chambers just because you have your employee constantly agreeing with what you think. that should help you improve your thought process especially with regards to finances and car ownership.
2.9k monthly lease ownership for a Chinese ev is not the norm even in SG. with lesser you can even own a US or Conti EV. in fact, unlike downpaying 50k for the car, you dont own any part of your leased car and have to return it after 12 months having paid 35k in annual lease expense excluding running costs, whereas a car owner can time the COE valuation prices to sell it back to the market at breakeven (COE prices are surpressed now due to 'political transitions') when COE inevitably rises again in the next 1-2years.
Super Bias Math. Dont bother to lease 🤣🤣🤣
happy for you guys. naysayers will always say how cars is not worth it one, end of the day people with no car will still spend their money on some other vices like travelling etc 😮. Money can earn back time but time cannot.
what car is Dan driving?
I used to be one of those guys whom say that because I couldn't afford one.
Just got my tesla last month, it's a different experience altogether