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Renting or buying a car?

Regardless of whether you drive daily or without access points, buying your car is no longer necessary. Buying and renting a car are now two viable and appealing options. So, when buying or leasing your car, what’s the right calculation? We equip you with the information you need to make an informed decision. You will see that car rental under 21 New York can be the right compromise.

The benefits and drawbacks of renting vs purchasing a vehicle

Choosing whether to rent or purchase an automobile is a difficult issue. Each solution has pros and cons and should be evaluated based on your needs and particular situation. While renting a car helps you to remain flexible by giving you the choice of changing models on a regular basis or deciding on a short-term lease, purchasing your automobile is synonymous with freedom for others.

But buying a car, unlike investing in real estate, has a major pitfall. It is related precisely to the purchase of a car: it depreciates itself at the very moment when you turn the ignition key for the first time. On average, a new model loses 25% of its value only in the first year of use. And if you add scheduled maintenance, gasoline, tolls, and insurance, the budget is frightening.

Renting or Buying a Car: How Do You Know?

Hence, the puzzle for many motorists: should you rent or buy your car? It will depend primarily on the use of your car and your budget.

Therefore, if you drive a lot and have sufficient financial resources, buying your vehicle seems appropriate, especially since you have a choice between new or used. However, even with a limited budget, you can still become the owner of your car by taking, for example, a loan with small monthly payments. Therefore, buying a car is an interesting investment, rather than for the medium term.

On the other and, if you have more narrow needs, an exceptional business trip or a family weekend, between buying or renting a car, the second option seems the most attractive. Indeed, you should know that in any case, owning your vehicle is far from economical. That is why resorting to renting from time to time can be a solution. There have never been so many rental offers on the market and the prices are very attractive, as for example with the CARNGO car rental service, especially if you book in advance.

Car rental before buying a car: the right compromise?

If you really need a new car to drive every day, you have a choice between buying or renting for the long term. For those who like to drive new models and regularly change cars, renting will be an ideal option. In this case, you should consider the option of a long-term car rental, for example, at such a service as CARNGO.

The long-term option allows you to rent a vehicle for a period of 12 to 60 months, depending on the rent agreement. The driver must then pay monthly payments, fixed according to the composition and duration of the contract, to dispose of a vehicle that he does not own. In this way, long-term rental offers the opportunity to be mobile without having to buy a car.

This is especially suitable if you have a project to travel by car, but do not want to invest in buying one. At the end of the contract, if it is a long-term lease, you return the car.

But a long-term lease has its drawbacks:

  • The amount of the rental fee increases according to personalization and does not always correspond to the price displayed in the advertisements.
  • The first rent payment can be very high.
  • A very high financial penalty is applied in case of exceeding the allowed annual mileage.
  • The financial interest of a long-term lease is practically zero if you keep the vehicle for more than 5 years.
  • If the vehicle is scratched or damaged when you return it, you will be charged a restoration fee. They can reach several thousand euros.
  • It is almost impossible to terminate the contract early or change it without penalties.

Car insurance: prefer a more protective contract

Some companies offer to include vehicle insurance in long-term rental agreements, but this is not always the case. Please note that even if you are not the owner of the vehicle, the registration card is issued in your name, so you are responsible for any damage caused during the rental period.

It is strongly recommended to take out comprehensive car insurance. There is a simple explanation for this: if your vehicle is only third-party insured, in the event of a claim, you will not receive compensation under your insurance policy and will be responsible for the amounts owed on your loan.

Is it necessary to take out the borrower’s insurance?

Even if it is optional, borrower’s insurance is recommended. Especially when the amount of the loan is large because it makes it possible to repay the remaining capital in case of a life accident (death, absolute permanent disability, temporary disability, etc.). You can subscribe to it from the creditor or from the organization of your choice.

Maybe it is better to buy it?

The most profitable way to buy a car is a loan. Today, there are two main types of possible loans for the purchase of your car, a personal loan or a so-called car loan.

A car loan is issued by a credit organization for the purchase of a specific object, for example, a new vehicle. This type of loan can be provided by a bank or an independent credit organization. This is the most common decision for buying a new car. The credit amount can be paid directly to the dealer by the creditor upon delivery of the car.

A personal loan is an ordinary consumer loan. This is an unallocated loan that allows you to finance all your projects, except for real estate. This loan can be useful for the purchase of a car in need of repair. The amount will be deposited into your account, which will allow you to buy a used vehicle in cash and finance its repair. 

Stop your choice of buying a car if you want to buy a new or used vehicle and if you want to fully dispose of your car. That is, you want to drive freely without restrictions (no risk of fines related to the mileage or condition of the vehicle, etc.). In this case, it is worth buying a car.

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