One of the most discussed topics in the vehicle sales industry is whether you should rent a vehicle on a long-term basis or whether you should buy a new car every five years or so. There are pros and cons to both. However, this article seeks to posit (and conclude) that auto rentimine (renting a car) is preferable to buying a new car.
What is a vehicle rental?
In essence, a rented car is a car that is not owned by the driver or any member of the driver’s family and friends. It is typically owned by a company whose core business function is to purchase different types of vehicles, including light motor vehicles, trucks, and buses, and hires them out to third-party companies or private individuals.
Vehicles can be rented from an agency for different lengths of time, anything from a day or so right up to a couple of years.
What is the result of purchasing a car?
A vehicle purchase is juxtaposed to a car rental. Practically speaking, when you buy a car, you take ownership and responsibility for the vehicle in its entirety. The car ownership includes financing the purchase of the vehicle which is either through motor vehicle finance or via a cash transaction. Also, an existing vehicle can be traded in, or sold to the car dealership, as part of the new vehicle purchase transaction.
Advantages of renting a car versus buying a car
As mentioned above, it is advantageous to take out a long-term rental on a vehicle rather than purchase the vehicle outright. Here are several of these benefits for your perusal:
Monthly running costs
It costs money to run a car. Because the engine contains moving parts, wear and tear needs to be calculated for every kilometre that car is driven. Additionally, there is wear and tear on the tyres which ultimately need to be replaced after a certain mileage.
The tyre manufacturer specifies this mileage. Therefore, when you buy a car, you need to add the monthly running costs to the monthly repayment amount. If you paid cash for the car, you need to divide the cash amount by the number of months that you intend to drive the vehicle before purchasing a new vehicle to get this monthly figure.
Peace of mind
The fact that it is the rental agency’s responsibility to cover the running costs is worth the peace of mind that it brings in today’s hectic lifestyle. Succinctly stated, it is one less thing that you need to worry about, and this fact alone is worth it is worth its weight in gold.
When you rent a car on a long-term basis, all you pay is a fixed monthly amount and the cost of running the vehicle is included in this amount. Thus, you will find that renting a vehicle works out cheaper than purchasing a new vehicle. Also, the piece of mind that comes with knowing that the vehicle rental agency will cover all aspects of the vehicle maintenance, and the fact that they will help you in the event of an emergency converts the cost of the rental into a valuable return on your investment.
Published by Zachary McGavin