Apparently, even information-communication technology is changing the way we see ownership. This new form of ownership mode, interchangeably called non-ownership consumption model, collaborative consumption or access-based consumption model were influenced by services of virtual companies like Spotify, Netflix, Zipcar, or Airbnb that have provided consumers an alternative mode of ownership. Thru on-line services of these companies consumers pay for temporary experiences afforded by these products instead of buying the actual good. It has thus become attractive since it provides a model for purchasing flexibility> according to experts, this mentality now also applies in car ownership and usage especially among millenials who seek perhaps mobility more than anything in the modern world.
But my story is a more practical one. As a car owner of more than half a dozen cars already, half of which are brand new and half of which are 2nd hand, the temporary ownership afforded by rentals, leases and 2nd hand cars are more attractive by primarily practical reasons.
The Practicality of Rentals, Leases and Used Cars
Off-the-bat, used cars remain the most affordable cars in Singapore. Compared to prices of brand new car, used cars, whether purchased, rented or leased, is substantially lower even if the car is merely a few years old or despite having considerable mileage.
And speaking of maintenance, car rental is more practical not just in terms of considering the cost of buying brand new ones which include regular maintenance expenses, insurance costs, longer repayment terms which means longer financial commitment to extended monthly amortization, wear and tear which lessens resale value. Here, there has been a dramatic increase not only in leases and rentals but in purchase of 2nd hand cars, and used car dealerships in Singapore has increased in volume over the last five years.
And lastly, on the economic side, cheaper equipment and parts have become more accessible to the public due specifically to information technology which allows locations, order and purchase of usually hard to find parts. As such, various car lease/rental and average used car dealer in Singapore are now able to provide better quality restoration and maintenance services which means better quality vehicles even 2nd hand ones even across long term use. And these are just your average small shops. Imagine how much better it would be for the best Singapore used car dealers. In my case, I had to bring my 2nd 2012 Sedan twice to the repair shop over two years whereas I had to bring my brand new 2016 SUV thrice in just two and a half years even for minor problems since failure to do so could have compromised warranty.
2nd Hand Cars and Lifestyle Changes
And then too, there is the cost of payment mode which for average income earners like me can become very tedious over-time. You see paying monthly amortization can first seem economical since you pay little that outright sale. But if this is spread across say 3-5 years, mit becomes burdensome over-time. In my case, I was tied to fixed monthly budget for over five years until my brand new car amortization was paid. It became difficult when we had our 2nd baby which required significant shift in budgeting.
In other words, used cars provide customers with better flexibility. When buying brand new cars, customers are often stuck to 3-5 year payment contracts which mean they stick to their cars for such durations. With lease and car rentals however, customers can short term and rent new models very so often. Even for long term rentals in Singapore, customers can simply request for change in model, make, brand or type and therefore get a chance to try various cars in just a year or even months.
