Growing Popularity of Car Rentals

19 Nov

For many countries, the growth of tourism, which translate to increased foreign guest arrivals have boosted various other industries most of which are not directly related to tourism. One such instance is the sudden boom of health and spa hubs around Singapore and other tourism centers in the world. Of course the boom in the industry can be significantly explained by the public’s search and demand, and even growing preference, for alternative treatments and healthcare. But there is no denying that a significant portions of customers of such service are not locals but foreign guests mostly tourists.

This is also the case in the car rental industry.  Daily car rental and long-term car rentals have become fashionable in the automotive industry. Statistics show that year after year, there is an increasing number of consumers who choose to lease or rent rather than purchase brand new ones.  Outside Asia, car leasing and rentals were already poplar in the last few decades but most of these car lease and rental transactions involved luxury cars. It is only recently that common cars like sedan, SUV and commuter vans have also been in demand.

The reasons for the trend are both apparent and interesting enough.

First, economics show that both daily and long-term car rental in Singapore seem to be more practical considering the cost of buying brand new ones which include regular maintenance expenses, insurance costs, and longer repayment terms which means longer financial commitment to extended monthly amortization, wear and tear which lessens resale value.

Second, 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.  In relation, the relatively cheaper and more accessible technologies have empowered various car rental and service to provide better quality restoration and maintenance services which means better quality vehicles even 2nd hand ones even for long term rentals.  

And lastly, car rentals in Singapore 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

Today, it has become commonplace to see car rental services utilized for various occasions. In Singapore, the common rent-a-car rental services include renting for weddings, family or school reunions. Since most of these transactions involve renting of vintage or luxury cars, they provide extra flair to these occasions. Due also to the significant rise of tourism activities in the region, daily car rental has also become a popular choice for families or groups out for long road trips since it saves wear and tear on the family car and avoid adding mileage to personal car's odometer that would depreciate its re-sell value.  Cross-city travel have also become a good reason to rent cars. These are often trips from provinces to urban centers for business meetings or airport ferry. Meanwhile, long term car rentals have become popular among foreign students, professionals who are temporarily detailed abroad or even tourists on extended stays.

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