|
 |
RENTING |
LEASING |
BUYING |
|
Ownership (in name) |
In
the Car Rental company's name
Eg.
Expat Car Rental |
In
the Hirer's or Company;s name
Eg.
Mr Philip Tan (car held in trust for his company) or ABC Company |
In
the Hirer's or Company;s name
Eg.
Mr Philip Tan (car held in trust for his company) or ABC Company |
|
Beneficial Owner |
Car
Rental Company |
Leasing Company |
Company buying car |
|
Certificate of Entitlement (COE) |
10
years |
10
years |
10
years |
|
Payment per month |
Less
than Leasing |
More
than Renting |
Equivalent to Hire Purchase Finance Instalment (Higher over
similar period, assuming 70% financing) |
|
Payment are for? |
Use
of vehicle |
Use
of vehicle with an option to purchase |
Vehicle itself |
|
Malaysia Entry |
Yes |
Yes |
Yes |
|
Option to Purchase |
No |
Yes |
NA |
|
Minimum term for new vehicle |
2 to
3 years |
2 to
3 years |
NA |
|
Upfront cost (Deposit / Downpayment) |
Deposit of 2 months' rental for 2 year contract, fully refundable |
Deposit of 3 months' for 2 year lease, fully refundable |
Downpayment of 30% of Purchase price. Remaining 70% may be paid
over up to 7 years through Hire Purchase |
|
Penalty for early termination |
50%
of the remaining unfulfiled rental term |
100%. No early termination allowed |
Penalty for early settlement imposed by Finance company |
|
Penalty for late payment |
Overdue interest charge @18% pa for late payments |
Overdue interest charge @18% pa for late payments |
Overdue interest charge @ 18% pa for late payments |
|
Documentation |
Little paper work
(Vehicle rental Contract & Schedule) |
More
paper work involved
(Leasing Agreement, Vehicle Schedule, Hire Purchase Agreement, LTA
Transfer form and Power of Attorney) |
More
paper work involved
(Sales Agreement & Documentation, Hire Purchase Agreement and LTA
Transfer form) |
|
Transfer fee |
No
fee when there is a change of Hirer |
LTA
transfer fee of more than $1000 (Estimated) when a change of name
is required |
LTA
transfer fee of more than $1000 (Estimated) when a change of name
is required |
|
Upgrading |
Upgrading is possible by paying the difference in rental (Based on
availability) |
No
upgrading |
No
Upgrading |
|
Variety |
New
or different car possible after each contract |
New
or different car possible after each lease |
None |
|
Payment of road tax, insurance, servicing & maintenance, spare
parts, inspections etc. |
Borne by Rental company |
Borne by Leasing company. Costs built into the monthly Lease
payments |
Borne by Owner |
|
Accidents / Damage to car |
Excess liability with valid GIA accident report
Administration & repair by Rental company |
Excess Liability with valid GIA accident report
Administration & repair by Leasing company
Costs built into monthly lease payments |
Owner's responsibility |
|
Replacement vehicle |
Yes |
Yes |
No |
|
Risk
of vehicle future Resale value / depreciation |
Borne by Rental company |
Borne by Leasing company |
Borne by Owner |
|
Getting rod of vehicle |
Return car to Rental company at the end of the contract term |
Return car to Leasing company at the end of the lease period |
Scrap, Trade in or Sell car |
|
Balance Sheet / tax Advantage |
Expense |
Asset |
Asset |
|
Depreciation |
NA |
NA |
Highest within 1st 3 years |
