It’s no secret that buying a car is not cheap. There is the cost of the car itself – either upfront or through monthly payments – plus insurance, parking, and upkeep and repairs. When all that is added up, you might be tempted to do the math on whether a long-term car rental is a better deal. We have rounded up some of the pros and cons of long term car rental vs buying a car in order to help you decide based on your needs and circumstances.
Buying a Car: Pros and Cons
In most of the United States and other countries around the world, having a car is a necessity. But it also costs money, and it can be hard to decide if making a commitment to buy a car rather than a long-term rental or leased car is worth it. Here are some things to think about before you decide to buy a car.
Pros of buying a car
- You are the owner!
- You can customize the car if you want to.
- Your money is going toward owning the car.
- You have the option of selling the car or trading it in if you want to upgrade.
- There are no monthly mileage limits to worry about.
Cons of buying a car
- Monthly payments are often higher than renting or leasing.
- You might need to take out a loan to pay for it.
- The car depreciates in value.
- You are responsible for repair costs (after the warranty ends, if new).
Long Term Car Rental: Pros and Cons
If you are looking at a long term car rental or leasing a car, there are some things to consider before choosing this option over buying a car. Many people choose to lease or rent a car long term because they can drive a new car that they could not normally afford to buy. SIXT rent a car has great long-term car rental offers.
Pros of a long term rental
- The monthly cost is often lower than a traditional auto loan payment.
- You are (usually) not responsible for repairs needed on your car for the length of the lease or rental.
- Renting or leasing a new-model car is cheaper than buying one.
- You don’t need to try to sell the car when you want to upgrade.
Cons of a long term rental
- There are monthly or yearly mileage limits for rented and leased cars.
- It is hard to get out of a lease contract early.
- Fees and penalties are common with leased cars if you don’t take care of maintenance, make a late payment, go over your mileage limit, etc.
- You don’t have the possibility of making money with the sale of the car at the end of your lease or rental contract like you do when you own it.
Renting Vs. Buying: Which is Better?
Both options have their plusses and minuses, but ultimately the decision comes down to your budget and how much you will use the vehicle. If you are set on driving a new-model car that would otherwise be out of your price range, or only need a vehicle for a fixed period of time, a long-term rental might be for you. And if you use your car a lot, driving long distances, and want the freedom of being able to sell your vehicle, buying a car might be the better option.