Long Term Car Rental vs Buying a Car – Which is Better?

Being the owner of something is a different feeling altogether. You have the right to change it as you want. This is something you don’t usually get with things you have rented. And speaking of owning and renting things, renting vs buying a car is probably one of the most frequent debates.

Are you stuck between renting vs buying a car? Buying a new model car might cost you a lot compared to renting a car. On the other hand, renting a car looks very tempting as you can get a new model car for a lesser amount every month. So is buying a new car still worth it? We have gathered some pros and cons of long-term car rental vs buying a car which can help you decide better.

RENTING A CAR

If you are a car enthusiast and are fascinated by the new cars launched occasionally, long-term car rental services can cater to your needs. You have to pay a monthly amount for the car of your choice instead of buying the car altogether. Renting a car is a budget-friendly option, and it comes with several perks. Here is a list of advantages of renting a car.

ADVANTAGES OF RENTING A CAR

  • Payments – Unlike buying a car, you don’t have to pay any large amount upfront when you are renting a car.
  • Rent – The monthly payment of the car is comparatively lower than leasing a car when you are going for a long-term rental plan.
  • Model – Many car rental services have a great variety of newer models. These newer models will have new features, options, and upgraded performance of the overall car.
  • Insurance/Maintenance- The maintenance, repairs, and insurance are usually taken care of by the car rental services provider, so you don’t have to worry about spending on car maintenance or getting it insured as long as you are renting it.
  • Resale – You don’t need to worry about the resale value of the car in case you want to upgrade because the car will be owned by the rental services provider.
  • Return – When you no longer need the car for any reason you can simply return it to the rental service provider which means you will not have to get into the hassle of selling it.

DISADVANTAGES OF RENTING A CAR

  • Limited Mileage – There is a limit on how much you can drive the car monthly or yearly.
  • Long Routes – Some car rental services only allow their vehicles to be driven within a specific area. The cars are usually limited to cities or states depending on where you are renting the car from.
  • No ownership – No matter how long you rent a car, you will not have ownership of the vehicle.
  • No Modifications Allowed – You will not have the free will to modify or customize the car.
  • Limited options – In some cases, you will not always find the vehicle you are looking for (usually budget models and standard models) with long-term car rental services, and you will have to settle with a different option.

BUYING A CAR

Now having options of renting and leasing a car, should you buy a new car? People from all around the globe travel almost daily either to work, school, or for other activities. And the most satisfying and comfortable way to travel would be in your own bought car. But you can face some hurdles along the way which will make you question yourself if you had rented a car instead of buying one. Let’s look at some pros and cons of buying a car.

ADVANTAGES OF OWNING A CAR

  • Ownership – The car will be transferred to your name after the payment, making you the sole owner of the vehicle.
  • Modifications – You can customize, modify or upgrade the car according to your desire and/or needs.
  • Selling – Since you will be the sole owner of the car, you can sell or trade the car anytime you want.
  • No Restrictions – There will be no monthly or yearly mileage limits or restrictions. Also, you can take your car out of the city, state, or even the country.

DISADVANTAGES OF OWNING A CAR

  • High Cost – Buying a new car can be heavy on your pocket since the prices of new cars have gone way up. You might end up taking a loan for your car.
  • Depreciation – The car will depreciate over time from the moment you buy it.
  • Repair/Maintenance – You will be responsible for maintaining and repairing the car (if not in warranty). Repair and maintenance of new model cars can be expensive.
  • Insurance- If you are buying a car you also need to make sure it is insured which can also be a big expense.
  • Taxes – Owning a vehicle means you will also need to pay taxes against that vehicle.

This was our list of advantages and disadvantages of renting vs buying a car. The decision can be a tough one as cars are something that you use on a daily basis. While the charm of driving a new car every other month can be hard to ignore, the perks of owning a vehicle are also fascinating.

The ultimate decision of this dilemma comes down to your budget and why you need a car. If the car you are looking for is out of your range, or you need a vehicle for a certain period then a long-term rental car might be the better option.

If budget is not an issue, you need to drive the car daily, go on long routes, and cash your car whenever needed, then buying your car would be the best option. So give a good thought to why you want a car and which option will save you money and add comfort to your life, and go for the option that best suits your needs.

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