The Car Rental industry has been on the quiet side. Here, we will examine how a car rental firm works. Understanding how it works might not aid in renting a car in Singapore but it can shed some light into this industry.
In Singapore, renting a car on a personal basis is illegal. In order to lease out your car, you would need to go through a car rental firm.
A person who wants to lease out his car would approach a Car Rental firm. The Car Rental firm would then take over the vehicle and the responsibility of paying up for the instalments and maintenance of vehicle. If the instalments were already cleared, then the owner of the vehicle could receive earnings from his leased car, based on the terms of the Car Rental firm. In this process, it’s important that proper procedures are followed. For instance, the owner of the car should ensure that all the terms slated are in the agreement and signed. This is to protect the owner from bearing liabilities due to car theft or damage.
Some car owners would lease it for long term while some do it for short term, i.e. during weekdays.
The Car Rental firm then rents out the cars. Basically, the Car Rental firm usually owns no cars. With the income generated from rental, the Car Rental firm settles instalments and maintenance of the cars.