When Malaysians see the word "leasing", it's usually met with a little bit of uncertainty, apprehension, and a general lack of understanding. Leasing schemes are very popular in many parts of the world, and are especially more important when it comes with higher end products. In many ways, a lot of the current financing plans offered by luxury manufacturers are leasing schemes disguised as hire-purchase models, because that is essentially what most buyers do, albeit in a slightly more convoluted fashion.
As such, Volvo Car Malaysia has launched their new Volvo Car Leasing scheme - an all inclusive service that offers stress-free ownership for a Volvo model from as low as RM 2,762.00. It's the first of its kind for Volvo in the Southeast Asian region, with many benefits for consumers that are usually ignored or hardly highlighted. Everything from cost of registration, insurance, and maintenance is covered by these monthly payments.
At the end of the leasing tenure, customers can choose to purchase the car at a Guaranteed Future Value (GFV), or simply continue the leasing program with a new model. In conjunction with the launching of this program, Volvo Car Leasing is also offering RM 300 of free petrol vouchers for bookings received up until 31st of August, 2018. Below is a full list of leasing options and prices for Volvo models currently on offer.
Even if you're unconvinced by the value, let's address why leasing is a great idea. On average, Malaysians looking at luxury vehicle models rarely keep their cars longer than 5 years - some even opting to sell their vehicles off at the 3 year mark in search of a newer, nicer vehicle. While a leasing program means you don't "own" the vehicle in terms of property, it also means that at the end of a 3 year or 5 year tenure you aren't faced with the challenge of selling off the car. With a leasing program, you don't need to worry about depreciation and settling of loan balances and so on - you simply choose to either buy the vehicle at its depreciated value, or continue the leasing program with a different car.
Add in the fact that the monthly payment you put in is similar to what you would pay for your average car loan, and maintenance is covered by this cost as well, and you have a pretty solid financial proposition. A leasing scheme allows consumers to change cars as regularly as 3 years, without the hassle of seeking loans and being tied down by extensive financial commitments. At the end of the day, the money you would have paid out as part of a leasing scheme is only marginally more than what you would have lost in depreciation by actually buying the car, and therein is the value of such a scheme.