Car leasing is not uncommon in Singapore. People lease a car because it is cheaper than buying a vehicle and more convenient than using the public transport system daily. Sometimes, foreigners staying in Singapore for more than weeks use rental cars to move around the country. Locals waiting for their vehicles to be fixed temporarily use rental automobiles as their transport service.

Whatever your reason for renting a car, it is undeniable that these services are helpful for Singaporeans. But there are car rental companies taking advantage of this service by trapping clients in unpleasant and deceiving deals.

Here are the long term car rental traps in Singapore that you need to watch out for:


For non-drivers, mileage refers to the number of miles the vehicle has travelled. Most car companies implement mileage caps or allowances for each car.

For example, your long term car leasing agreement in Singapore may state that the vehicle has a mileage limit of 6,000 miles in one year. It means the car must not exceed this limit within one year; otherwise, the driver will be charged for excessive mileage.

A low mileage allowance can be an issue for drivers who regularly use vehicles for long-distance journeys. People must read the terms and conditions of your contract and make sure the mileage limit can accommodate your needs.


Besides low mileage allowance, some car rental companies charge drivers for every mile they cover outside the mileage limit. Usually, the more expensive the vehicle is, the higher the charge.

There are many ways to avoid extra mileage charges. Firstly, calculate the number of miles you cover in a year. Then choose a vehicle with a mileage cap that covers your yearly mileage rate.

Secondly, make sure not to exceed your monthly mileage limit. Keeping within your limit avoids mileage penalties.


You may encounter vehicle rental companies advertising extremely low monthly payments, sometimes no monthly payments, for long term car leasing deals in Singapore, but these deals have a catch.

The monthly payment may be low, but you should pay a hefty down payment to secure the deal. Although there is nothing legally wrong with this scheme, it is better to know their tactics, especially if you don’t have enough money for the upfront cost. This way, you don’t have to bother checking them out and can move forward to the next deal.


Another tactic by car rental companies is comparing the monthly payment between leasing and buying a car. Indeed, the monthly payment for long term car rental deals in Singapore is much lower than buy-outs, and companies take advantage of this fact to entice drivers to lease the vehicle.

But in hindsight, buy-outs are more cost-effective because the driver gets to own the vehicle at the end of the contract, while in leasing, the driver has to return the car and enter another leasing deal.

Never fall for these car leasing traps when looking for long-term car rentals.

Hertz Singapore provides reliable and affordable long term car rental deals in Singapore. Visit Hertz Singapore today.