Buying a car is a very exciting process. It is pretty straightforward: you borrow money from a financial institution, make monthly payments until the loan is paid off. Once all the loan along with interest is paid off eventually, the vehicle becomes yours. As the owner of that vehicle you can modify it the way you want to, from installing accessories to giving it a jay look. The only concern is a lower resale value when you sell it or trade it in. However, if you need an upscale car for your business or for any other purpose, renting is a viable option. https://www.acerent.com.au/ provides a wide variety of luxury and budget cars. As per autorentalnews.com the customer base for rental cars is increasing.
Before deciding on owning or renting a car, look at the pros and cons of each option.
Pros of renting or leasing a car
No down payment needed for leasing, if any a very nominal advance payment and a refundable security deposit is all that is needed to rent a car.
You can choose to rent the fanciest and very well equipped car which otherwise you might not be able to afford
Rented cars will have complete and comprehensive insurance coverage, so breakdowns are covered by the rentals
The future value of the care doesn’t affect you financially, you lease it, enjoy it and return it.
Cons of a leased Car
● In a leased vehicle, monthly payments go on till the vehicle is returned or the contract expires.
● Number of miles that the car can be driven is limited and is mentioned in the contract. If you drive more than the mile mentioned, you will have to pay more. On the other hand if you drive less, you miss out as there is no credit to the unused miles.
● Vehicles have to be returned at the end of the contract the way it was initially handed, or you’ll you will be charged extra when you return it. So, be prepared to pay extra for any nicks, scratches or dent that happens while driving or parking.
● Pros of buying a car
● Cars can be customized as you like it
● Buying a car is more economical in the long run.
● No mileage restrictions, can drive as many miles as you want
● Can sell the car whenever you fancy
Cons of buying a car
● Down payment is higher and you would be owing the bank\finance more than the car is worth
● Higher monthly payments than car lease monthly payments
● Purchase of insurance to cover damage to car
● Car value depreciates every year and hence need to absorb that cost in case you plan to sell it.
There is no one size fit when it comes to buying or leasing a car. Carefully consider all the pros, cons and the finance involved to decide which options suit best. In a nutshell, you can easily lease or rent a car with less money as you pay as per the usage of the car and not the entire car value.
Buying gives the feeling of joy in car owners and gives the freedom of customization. Finally, it’s left to car buyers to look at the pros and cons, know their needs and decide based on their lifestyle.