To the question “renting or buying a car?”, it is always difficult to answer. Why is that? Simply because this choice will be determined by your lifestyle. It is impossible today to give a clear-cut opinion on the question. Indeed, while some people go to work by car, others take public transport. And while some people travel 50 km to work, others are only 5 minutes away from their company. Insurance, maintenance, financing, kilometers, we will discuss all the parameters to be taken into account when making your choice to make your daily life easier and respect your budget.
Buying a car: the freedom option
Buying or renting a car? That is the question. Buying a car has both advantages and disadvantages, and your lifestyle will determine whether it’s really the best choice.
Advantages of buying a car
Buying a car is a solution for every need. You are free to choose your car, whether it’s a newer or older model. If you only use your car to drive a few kilometers every day, you don’t need to bet on a new car. A used car with a warranty will easily be sufficient for your daily commute and will limit the price. On the other hand, buying your car allows you to be free and more serene. With car rental, there is always the fear of damaging it and paying extra costs, but also of exceeding the number of kilometers stipulated in the contract.
Disadvantages of buying a vehicle
There are three main disadvantages to buying a car. The first is that you have to find financing. Depending on your situation, your bank will not necessarily agree to grant you car credit. The second is the maintenance of your car. Indeed, when you have to do major repairs such as changing the timing belt, the bill can go up very quickly, but it never comes at the right time. The third disadvantage is loss of value. The discount on cars is fast, it is not always profitable to buy a car, let alone a recent one.
How about renting a car?
When you ask yourself whether to buy or lease a car, it is not uninteresting to understand how leasing works. While it obviously has a few drawbacks, it also offers some attractive advantages.
The advantages of renting a car
By opting for LLD, you do not need to find financing. But above all, you have a better view of your budget. Here, the comparison between leasing and buying a car is simple. By buying you expose yourself to costs that you may not have anticipated, whereas with a car lease, you pay the same amount every month, maintenance is taken into account. In addition, you benefit from recent cars and can thus please yourself by changing every year to drive a vehicle with the latest technology.
The disadvantages of renting a vehicle
You’re not free to ride as you wish. Indeed, your contract stipulates a certain annual mileage for the duration of your contract. Choosing this formula may therefore expose you to additional costs at the end of the year. Likewise, if you return a damaged car, you will have to pay an additional cost. It is advisable to check the terms of the contract beforehand.
What about insurance?
Buying or renting a car, no difference, the law requires you to take out insurance for any land motor vehicle. It is then up to you to choose the level of coverage according to the age of your car, your use of it, etc.
Car rental or purchase comparison
To sum up, if you are still wondering which solution is best, here are the points to consider before making a decision:
- How many kilometers do I drive per year?
- Do I have the possibility of taking out a car loan?
- Do I need a new or used car?
- Do I have the budget to anticipate major repairs on my vehicle?