Monday, 21 December 2015

Is It Legal To Rent Out Your Car In Singapore?

Singapore is one of main Asian countries rich in tourism investments for both leisure and professional purposes. To that accord the country is flooding with constant traveling individuals who will continually look into acquiring car rentals that help them conduct their local travels in Singapore more easily than when they have to try and find a cab company that will offer them these services as frequently as they require them and at an affordable pricing rate. Therefore, leasing or to rent out a car varies with the time duration for the clients stay and errands will determine which main contract they will sign up for. There are many car rental and leasing companies that are highly equipped with different types of cars to provide for travel services.

Private cars legality of renting and leasing in Singapore

If you have been wondering how to make an extra passive income with your privately owned car it is best to first know where your category of business lies in the Singapore law. Legally it is only legal for a private car owner to rent out their private cars if the private car owners has undertaken a private car insurance coverage categorized for this purpose of renting the vehicle and it should only be placed up for rent in the private car rental scheme. If a private car is rented or leased from a rental and lease car company both the company the car owner are held liable.

Drivers/ car renter consequences of renting out a private car from rental companies

There are also high consequences to the drivers/ renters who decide to utilize the services of renting/ leasing a private car placed to provide these services from a rental/ lease Car Company. The types of legal penalties severed in this case include:

1. Risk of receiving a driving ban for a maximum of twelve months and this impact your driving record negatively.

2. You can be charged with one thousand American dollar fine by the judicial court system in which your case will be heard while in Singapore.

3. Depending on the ruling you can also be confined to imprisonment for a maximum of three months which would still be placed on your official identification record.

4. You would have to undergo unlimited liability claims especially if the private car you were using was not insured in terms of the insurance coverage provided for private rental cars.

This system is highly required in order to keep the car rental industry at balance in their trade as car theft is one of the most common crimes in the world and the car insurance policy for private cars under provision of rental services to clients’ in Singapore, helps to keep track of all viable owners of the car and eradicate the trade of leasing cars which have been stolen for this purpose in the quest of making an extra profit. The insurance policy for the privately owned rental cars is far much different from the company owned rental cars and is required in order to ensure that each privately owned car is not placed in poor condition in order to have the renting client charged with a hefty fee of recovery once it breaks down while using it. Therefore, it is important to first get the proper insurance coverage for renting out your private car in Singapore and do not place your car to be rented in a rental company but rather have registered under the private car rental scheme program which was started for this main purpose.

Privately owned cars in Singapore that are placed under the rental and leasing program also have a strict time schedule as to when they are allowed to have their cars rented and these time schedules include; from 7 pm on Fridays to 7 am on Monday and even on public holidays clients can rent the private cars from 7 pm on the eve of the public holiday day to 7 am the first following of work day after the holiday. If this time is surpassed and one is caught the driver/ renter is liable to answer to the law of Singapore.

Tips in reducing rental car expenses in Singapore

The following tips are useful in reducing the rental car expenses in Singapore:

1. Tyre pressure checking.
2. Sparingly use the Aircon system in the vehicle.
3. Sudden acceleration and braking should be avoided.
4. Plan your route before starting your journey.