Buy or rent a car

Americans love cars, there’s no doubt about that. Thousands of vehicles have been registered. Most families in the United States often own at least two cars. However, is it always worth it to buy a car, for example, when you are 21 years old, and you should not consider alternative solutions in case of low projected mileage, as in the case of Car rental under 21 years old?

Regardless of the frequency and intensity of use, owning a car inevitably results in a number of fixed costs: monthly rental payments, insurance, maintenance, accessories, and repair costs. The total cost to a car owner can reach thousands of dollars annually. Is it just worth the fun of owning a car?

If a person lives in a city and the annual mileage is less than 10,000 km, it makes sense to calculate the total cost of the car and ask yourself whether it makes sense to have a car often sitting in front of the house, or if it is worth considering alternatives for less frequent trips .

sentimental value

It is not uncommon for people to treat the car as a beloved family member who is pleasing to the eye and a pleasure to drive. A car is not only a practical way to get from point A to point B – many people also feel an emotional connection with their car.

In the latter case, a car is more than just a consumer and vehicle item. You should not try to evaluate his attitude to the most correct or logical car. People’s opportunities and desires vary, and each person has the right to decide how to relate to this topic.

Car loan or leasing

If the decision to purchase a car is made, then you need to choose whether the car will be bought on the spot or rented. The average amount financed by leasing is between 15 and 20 thousand US dollars. But, for example, CARNGO offers quite favorable conditions in the case of car rentals under the age of 21.

Usually, a car loan or a small car loan is taken if a person wants to buy an older and cheaper car – cars purchased on credit usually have a price of less than $10,000.

The interest rate on the loan is higher than the interest rate on the lease, however, in the case of a loan, the cost of insurance can be avoided if the car owner does not consider such insurance coverage necessary. If there is no requirement for a registered mortgage, the owner of a vehicle purchased on credit can sell it if desired.

Which is cheaper – buy or rent?

The lease interest is less, and in case the finance amount is equal, the monthly lease amount is less than the monthly loan payment. Leasing gives the user more flexibility and a sense of security, as it is common to rent new machines that do not need to be repaired as often.

The monthly payments for a $10,000 car loan and $18,500 on the lease are often the same. This means that the total monthly cost of renting a new car can be equal to the cost of the loan taken to buy a used car. In this regard, many may wonder: why take the risks associated with a used car, if you can rent a new car for the same amount that costs twice as much?

Car rental is becoming more and more popular

If you prefer not to take on financial obligations, and if necessary, you want to be able to return the car at the lowest cost, then renting a car is a good solution for you. In fact, the monthly rental cost will be higher than the rental payments, but it will also include insurance and maintenance.

Thus, car rental is well suited for those who want to have a car for a shorter period than the rental period allows. Car rental has been familiar to American companies for many years, but it is gaining more and more popularity among individuals as well. Most likely, it is only a matter of time before this service becomes a regular everyday product.

So what do you choose?

Buying a car for personal ownership isn’t always the best decision at age 21, no matter how attractive it may be. In fact, there are many reasons why renting a car is more convenient, profitable, and safer than buying one:

Therefore, when buying a car, you will need to pay a large amount immediately or within a certain period of time, which is very tangible for the family budget.

In addition, you will have to add the costs of paperwork and mandatory car insurance, as well as periodic costs of maintenance, repairs, and fuel.

As a result, the final cost of using your car will be high, and it will not be possible to call trips on it at least profitable. Of the pluses, only comfort remains.

The only exception to this rule is the purchase of a car for commercial use in a taxi, delivery service, or freight transport, the regular (and in some cases almost constant) operation of which allows to cover not only all costs, but also a profit.

In the case of car rental, the actual costs are much lower. It only includes the cost of service and fuel. The last customer buys based on his needs, frequency of trips and distance of trips. No other costs, including insurance, are required at all as they are fully covered by the company that owns the fleet. Thus, the cost of renting is much less than the cost of buying and taking care of a car.

Do not forget about such an important point as the garage. It is not always and everywhere safe to leave your car in the open, so the point of purchase or rental of an enclosed parking space will be automatically added to the list of expenses.

And if it is located a significant distance from the house, you will need to spend not only money but also your own time to get to it. Daily car rental solves all these problems at once.

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