RENTING VS. BUYING A CAR
I have always wanted a range rover; I just love the styling and quality of the brand. now that I am ready to take the plunge I am trying to determine weather renting vs buying a car is a better option.
The 2020 Range Rover is one of the best I’ve seen; it’s not your typical concrete jungle SUV; it’s as roadworthy weather on the highway or bouncing around a muddy and rocky off-road trail. It has an adaptive air suspension and many luxury and safety features that make city driving easier. For those times you’re escaping city life, going off-roading the vehicle has plenty of ground clearance and power to make it a joy.
Now that know what car I want I am ready to make my purchase, I am trying to figure out what is the best financial transaction for my budget. I have found the following three options: I can buy, lease, or rent a Range Rover at RealCar. All these alternatives have their pros and cons, so I’ll share what I have learned during my research as at first, it can seem a bit overwhelming and confusing. We will explore all the benefits of each option helping us choose what’s right for your situation:
Before diving into the three financial options to determine weather renting vs buying a car is right you, ask yourself these questions to determine what cars fit your needs:
What kind of car do you need? Why do you need it?
- If you’re like me, you know what car you want, or you may need to determine what you need and want in a car and then go out and test drive a few. In both cases, understand your needs as this will help you identify the perfect car that you will be happy with for years to come
- Do you have a family, and do you need to carpool your kid’s friends around? Or will you use a car only for yourself?
Do you need a car for everyday use?
- Some people use their car for work and drive hundreds of miles a day while others may have a 5-minute drive to work, others may only drive on the weekend. Determining what you will need the car for and how often you will be driving will help pick the best option for you.
How many miles will you drive a year?
- This might seem irrelevant to think about, but it is, in fact, very important. Are you planning on driving only short distances, or will you make a road trip throughout the country? Renting or leasing has yearly mileage limits, so if you will exceed those limits buying the car vs. leasing or renting would be a better option.
What is your budget?
- This question relates to all previous ones. We always want to save money and so by deciding why you need a car and how often you will to use it will determine the price range. Although the prices of new cars can seem high, buying a car can sometimes be much more beneficial than renting, if you consider the longer-term picture.
Now that you know what you need in a car and your budget, it’s time to research cars that fit your needs. Follow these steps as you narrow down your choices:
- Research cars that fit your criteria online.
- Test drive the cars on your list.
- Pick out the model and features you want
- Negotiate a price
- Choose your financing option
- Take your new car home and enjoy
Now that you have your perfect car picked out its time to figure out how you are going to pay for it. As we mentioned before there are three main options that we can use to finance our car, below are our options you will notice that each options differ significantly, read their description to determine what make the most sense for you:
This option is basically ‘pay as you go.’ Many people who live in cities do not need a car on an everyday basis because of city transportation or the desire to avoid traffic and delays. New York has a service and is very popular because people still use cars on weekends to make trips with their families and friends. In this case, renting a car comes as a huge benefit because you do not need to maintain it and invest money in it. You only pay for the time you use it, and it is totally up to you how often you take advantage.
Leasing is very similar to renting with the difference that you rent a car for a few days or weeks at maximum. Leasing is a long term commitment, usually a minimum of at least two years, although this can vary. Companies that offer leasing often ask you to put down a deposit, and then you pay a monthly payment (smaller than if you were buying outright). At the end of the lease term, you can turn the car in or buy the car outright for its residual value that was agreed upon at the start of the lease. With a lease, the terms also specify that you cannot drive over a specified number of miles over the term of the lease. If you turn the car in and have exceeded the miles, you will have to pay a fee per extra mile driven. If you tend to trade your car every few years, leasing is a good option.
Buying a car makes sense if you tend to keep your car four-plus years, and you need a car on a regular basis. Although there comes more responsibility by owning a car such as insurance, regular maintenance, repairs, and the higher monthly payment. Having your own car comes with many benefits and the freedom to move around when you desire. You will have your own transportation whenever it is needed, and you will be truly free in planning your holidays and trips.
Everyone has their own needs; hopefully, this article has given you a little more information to help you make your decision. Whatever you decide, enjoy your time on the open road!