Renting a car is better than buying a new car

Is the rental of a car better than buying?

Choose whether to rent a new vehicle instead of buying it mainly depending on the priority. For some engines, rental or purchase is purely the problem of dollars and hundred. For others, it is more a question of establishing emotional relationships with cars. Before choosing the path to be lowered, it is important to understand the main differences.

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Buy vs rental

When you rent a vehicle, you rent it at the bottom of the dealer for a certain period. It is generally 36 or 48 months. After the end of your rental period, you have the possibility of returning the vehicle to the dealer or buying it with a predetermined amount, which is defined in the rental contract.

It is very different from the purchase of a car. Buying it directly means that you have it after payment of the loan.

Rent payment

Rental payments are generally lower than monthly payments for loans for new vehicles.

The monthly car loan payments are calculated according to the sale price, interest rates and the number of months necessary to reimburse the loan.

Payment of rent depends on the factors including:

  • Sale price: this is negotiated with dealers, as is the purchase of vehicles.
  • Rent length: this is the number of months you agree to rent a car.
  • Expected mileage: The rent defines your maximum mile number can drive a car each year. Most of the rent came with an annual allocation of 12,000 miles. The monthly payments will increase a little if you opt for a higher annual mileage. If you exceed the mileage limit in the contract, you need to the money dealer for each additional mile at the end of the rent. 1
  • Residual value: this is the value of the vehicle at the end of the rent, with experienced damping. If you decide to buy a vehicle after the end of the rent, this is the amount you will pay.
  • Rental fees: These costs are displayed as a dollar number rather than a percentage, but is equivalent to costs of interest.
  • Tax and cost: this is added to the rent and affects monthly costs.

Some dealers or producers they represent need a rent for rent. The more you put, the lower your rental payment.

Keep in mind that it may not be logical to put too much money from the vehicle which, in the end, you return to the dealer. If you are sure to buy it at the end of the rent, this will then reduce the cost.

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Advantages and disadvantages of the rental

The main weakness of the rental is that you do not get any capital in the vehicle. It’s like renting an apartment. You make monthly payments, but you do not have complaints of property for a property after the end of the lease.

In this case, this means that you cannot sell cars or exchange it to reduce the cost of your next vehicle.

However, there are also advantages for rental. They understand:

Lower monthly payments

The rent slightly reduces the burden if you worry about the monthly costs to get a car. In general, monthly payments are much lower than car loans. Some people even choose a more luxurious car than they can.

Make sure your insurance includes any cost that can always be due even if the car is total before the rent is exhausted.

New car every few years

For many people, no one is like a feeling of driving in a new trip. If you are one of them, rental may be the way to take. When you rent in a few years, you can return it and get the next new car.

Interview without concern

Many new cars offer a warranty that lasts at least three years. So when you take a three -year rent, most repairs should be shown. The rental regulations mainly eliminate the danger of significant unexpected costs.

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No worries is sold

Are you the kind of person who hates fresh water? If this is the case, you could hate the idea of ​​selling your used car to a dealer or a personal buyer. With the rent, just turn the car. The only thing you should worry about is to pay the final costs for the final rental.