Should You Lease A Car In Malaysia?

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When it comes to getting a car to drive, most people are only familiar with two options: you can buy a car to drive, or you can rent one instead. Buying a car is the long-term option while renting one is typically seen as being for short-term use only. Still, what if there was a way to enjoy the best of both those options?

You can think of leasing as the middle point between buying and renting a car. Instead of paying heavily upfront to own the vehicle, leasing means that you’re paying a recurring fee to drive a car for one or two years at a time. Car leasing has its pros and cons, leaving many to wonder, should you lease a car in Malaysia?

In the following sections, we’ll explore everything you need to know about leasing a car in Malaysia. We’ll explore what it means to lease a car, the benefits and drawbacks it offers, and the bottom line of whether or not it's a good idea.

Keep reading!

What Does It Mean To Lease A Car?

To lease a car means to rent it, but for a more extended period than a regular rental. Typically, a car lease may last one or two years at a time, though it’s sometimes possible to lease it for shorter or longer periods than that. Rentals typically last for days or weeks only.

During that time, the car is yours to drive as you please. However, there are some standard rules that you must abide by. For example, car leasing companies usually do not allow you to modify or change the vehicle in any way. Plus, depending on the leasing agreement, you may have mileage restrictions limiting how far you can drive that car.

Generally, you are also responsible for the well-being of that car. That means you must keep the car maintained and free from any damage like scratches and dents. If you were to return the car at the end of the lease period with any damage on it, you’d end up having to pay a fine!

At the end of that car lease period, you’ll have several options. You could extend the lease to continue using that car or lease a different model instead. In some cases, you might be able to pay a certain amount to buy the car so you can own it outright.

What’s The Difference Between A Car Lease and a Car Subscription?

In the past couple of years, we have seen a growing number of car subscriptions services in Malaysia. At first glance, you’ll notice that car subscriptions have a lot of similarities with car leases. So, what’s the difference?

Well, first and foremost, it’s essential to understand that some people (and even companies!) use the terms ‘lease’ and ‘subscription’ interchangeably. To see the difference, you’ll have to look at the fine print.

With a car subscription, you’ll have to pay a recurring fee (usually monthly) to drive a car that you don’t own. Sounds like a car lease, right? Yes, except a car subscription does offer you much more flexibility and many more options.

For example, with a car subscription, you typically have the option of swapping cars with other models at regular intervals. So, if you’re bored with the car you’re driving after a month or two, it’s usually possible to request a new model to drive. You can’t do that with a car lease.

Besides that, there’s also a difference in who’s responsible for maintaining the vehicle. Some car subscriptions also include vehicle maintenance, though, with a car lease, that’s your responsibility.

As you can see, there are plenty of overlaps between car subscriptions and car leases. How can you be sure of the difference and choose the better option? Well, you must always look closely at the terms of the agreement.

What Are The Benefits Of Leasing A Car?

So, why would anyone want to lease a car? Well, here are three reasons: lower upfront costs, drive a new car every year or two, and enjoy warranty coverage.

Let’s take a closer look at each one.

Less Upfront Cost

That is probably the most obvious benefit of leasing a car instead of buying one. When you lease a car, you’ll have to pay a much lower upfront cost. 

Think about it: when you buy a new car, you’ll have to make a downpayment, then pay for the car’s registration and tax; all before you can even get the car on the road!

When you choose to lease a car, the vehicle is already good to go. All you have to do is pay the necessary fees and deposits, sign the agreement, and off you go!

Drive A New Car Every Year Or Two

Car leases are also a very attractive option for many people because it allows them to drive a new car every year or two. When your current lease agreement ends, you have the option of leasing a newer, flashier model of your choice!

Warranty Coverage

Seeing as how leased cars are still new, that also means they’re still under the manufacturer’s warranty. So, you won’t have to worry about paying for any major repairs that are covered by that warranty.

What Are The Drawbacks Of Leasing A Car?

Car leasing has its fair share of drawbacks as well. 

Above all, here’s the most important thing you must know about leasing a car: even though you drive that vehicle every day during the lease period, you do not own it. 

So, you can’t modify the car, upgrade any parts, or even paint the exterior. The car must stay in the exact same condition as when you received it. Plus, if you returned the vehicle with any damage after the lease period, you’ll have to pay a fine or penalty.

Bottom Line: Should You Lease A Car In Malaysia?

So, should you lease a car in Malaysia? Well, firstly, it depends on your personal needs and desires. Some people want to own the car that they drive and have the freedom to modify it according to their style. If you’re that kind of person, then perhaps you shouldn’t lease a car.

However, it’s different for people who prefer having fewer long-term financial commitments or those who want to drive a new car every year or two. For those kinds of people, getting a car lease could offer more peace of mind and enjoyment.

To learn more about cars, motorsports, and the automotive industry, check out TOC Automotive College, the Best Automotive College in Malaysia.