Should you rent a car for the long term or buy a new car?

Is your workplace at the farther place from your home? Do you travel on daily basis to your job locations? This gives a need for a conveyance for daily needs. Then there are two options available for you: rent a car on a monthly or annual basis or buy a new car.

In this article, you will read about the benefits of renting a car for the long term over buying a new car. The basic approach for it is similar to the traditional car rentals but with a major difference: “the duration of the rental”. Renters renting a car for longer-term need it on daily basis and not just for trips, occasions, or weekends. So stick till the end to have an answer to your doubt “should you rent a car for the long term or buy a new car?”

What is the purpose of long-term car rentals?

Have you rented a car earlier for a long vacation or short weekend getaway? If yes, the processes involved in renting for an annual or monthly basis are the same as renting for shorter terms. If not, don’t worry you are still in a win-win situation due to the benefits of renting for the longer term.

One of the major and expected benefits of renting for a longer duration is a good discount on the rental price. It goes like this: the longer the duration of keeping a car, the better will be the discount you get.

The discount will be different as offered by the car rental companies and mainly depends on the car category you select and its mileage limit for instance: 2000 or 3000 km or even more. This way you can easily find an affordable and convenient price.

Every contract has a minimum number of rental days. If you are renting on monthly basis, you can keep the car for months and renew the contract if you feel the need. If you change your mind, you can still return the car before the contract term is completed, only if you have completed those minimum number of rental days.

Why should you rent a car for the long term instead of buying a new car?

Here are some benefits of renting a car on an annual or monthly basis. Go through the pointers below and clarify your doubts:

1. Versatility: You are not bound to complete the contract period. You can return the car whenever you wish so. In case, you wish to keep the car for a duration longer than mentioned in the contract, you can renew the contract. So it’s a win-win situation for you in both ways.

FEES: On returning earlier, you have to pay for the minimum monthly period. Generally, the cheapest monthly rate is charged for 28 rental days or more. If you return earlier than that, you will have to pay the rate as decided for the regular renters as per the value of the rented vehicle on the day contract was signed.

2. The price: As mentioned above, renting for a longer duration saves you a lot of expenses. Many times, renting for a month is cheaper than the cost of owning a car for a month and also from renting for short durations. This is because if you decide to rent for a longer duration say a month, you get a discount on the regular rate. So if your job or date allows you for the same, go ahead.

3. Explore the variety in different brands of cars: If you are someone who loves driving different cars and love to be blown away by the new interiors, new smell, and new experiences, then renting for a month is a good option for you. Driving makes you bound to one car whereas renting offers you varieties as you are likely to get a different car to drive.

4. Stay stress-free without insurance and maintenance worries: As you are not the owner of the car, it’s not your responsibility to worry about insurance, repair, or maintenance. If you face any problems, just inform the car rental company. Additionally, if you are renting for a month, you directly get mandatory basic protection for the car in case of minor mishaps on daily basis.

5. No administration required: It’s not your responsibility to be worried about documentation, maintenance, insurance, taxes, repair, or any other administrative tasks when you are not the owner. So you can keep the car daily considering yourself as to its owner that too without worrying about refreshing the documentation.

6. No worries about reselling: Leaving the car at the door of your rental company for exchange is far easier than reselling it. If you are renting for a regular duration then exchanging will demand the loss of money. Reselling requires time and patience but you face no financial losses if done in private. Whereas renting for a longer period requires no extra money for exchange. Just contact your company and exchange it. Without any loss.

How much do you have to pay for renting a car on monthly basis?

Though it completely depends on the car rental company you choose, it is also dependent on some other factors:

• Car category: the higher category you choose, the higher will be the cost.
• How many kilometers do you wish to drive? Obviously the more km you drive, the more you will be charged,
• Mileage limit

Who can rent for the long-term?

The monthly or annual car rental schemes are for those who are looking to have a car under their name. And this will be a trend in upcoming years due to the increase in economy, health, safety, and services. If you always wanted to have a personal car and exchange it with another variety(once a year), this is a golden idea for you. Because the monthly expenses of owning a car and depreciation of the car are more than the monthly rent.

It also offers a hidden benefit that people fail to see. Buying a car means that your money is on hold even if you sell it after some time. Whereas while renting, the rest money can be invested. The former is a liability while the latter is an asset. It’s gonna boost your financial situation with higher and positive returns.

Are you an Uber driver?

If you are an uber driver, read your rental contract properly. Because many rental companies do not permit cars rented at the monthly cost to be utilized for this purpose. Also, have a look at the mileage limit under this contract. Because the expected mileage offered by the rental companies will not be enough for a higher distance. These companies have different plans and contracts for the people renting vehicles for a car service.

VERDICT: rent a car for the long term or buy a new car

Over the benefits of renting mentioned above, the specified savings differs as per your financial situation. Either the car is purchased in cash or you took a loan. Ask yourself if everything else falls in your budget even after buying a car.

Since the condition varies with every individual, it is suggested to analyze and create a chart to display how much would it need to buy or rent a car. Along with this, add other expenses like license values, insurance, and taxes for a purchased car. Whereas these expenses are already included in the rental rate.

So it’s time that you make your final decision and choose whether to rent a car for the long term or buy a new car.

We hope that we were successful in clearing your doubts and showing you the right path. In case anything is left, please mention it in the comment section below. You can also tell us how did you like our overview. If you wish to contact us email us or give us a call.

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