Vehicles are an essential part of our life. There are so many options available for moving from one place to another. However, for traveling with family or friends or to have a peaceful ride, a car would be better than other modes of transportation. Nowadays it is not necessary to buy a car for personal use because there are so many car rental companies in our locality. This is one of the major reasons for confusion in acquiring a car. Some of the advantages and disadvantages of car renting and buying are as follows.
The money required to buy a car is so much higher than taking it on rent. However, if a person is in need of an automobile for a long time, it would be better to buy a car on installment basis because the rent that would be levied would be higher than the installment amount. In addition to that, investing money in a new car will give the buyer benefit of more time of usage than renting the same. But, the repairs and service cost of the car would be taken up by the car renting agency if the car is rented and the owner would have to spend for the same if it is bought.
If a person is buying a car, the full ownership will be in his own name. This will give him full freedom to do any modification as per his taste and preference. Even if the car is bought on an installment basis, the buyer will be having full ownership of the same. On the other hand, renting a car is an agreement between a person and a car rental agency. This contract will not give the person an ownership of the vehicle but only the right to use. This will restrict them from doing any modifications to the vehicle and he or she will have to drive it in its original settings.
Spending money to buy a car is a type of long term investment because the person will have complete ownership on the same and he or she can use it as long as they desire. Even if it requires some maintenance in time, an automobile is highly durable. However, renting is mostly done to satisfy a short term need. Those people who are taking a car for rent will have to give it back to the agency within the specified time. This is also an advantage of car rental because that person can use so many different cars within a short period.
Mileage And Performance
Mileage is one of the biggest concerns while choosing a car. The rented cars will be having comparatively less mileage compared to the same type of cars owned by individuals. This is due to its usage, that is, a renting agency will be giving the same vehicle to all their customers who are demanding the same. The driving style of each customer will be different. Riding a vehicle by multiple users will reduce its mileage and performance. However, this problem is absent while buying a car.
It is the duty of the car renting agency to insure their property, that is their car. Nowadays most of the car renting agencies are providing facilities like personal insurance to their customers. This will ensure financial security for those people utilizing car rental services if they are met with an accident. If a person is buying a car on his own, he or she will have to take care of the insurance of their car and also on themselves. It will lead to an extra cost over the car owners.
Benefits On Disposal
If a person is having the ownership of a car and if he wants to dispose of the same, he can sell it to some other people for a second hand price. This will help in the recovery of a nominal fund that was spent on its purchase. On the other hand, while returning a rented car, the user will receive no money. However, he or she may be able to recover the amount which had been given to the agency as a security deposit. The benefit of disposal is an exclusive advantage of buying a car.
There are so many advantages and disadvantages associated with buying and renting a car. Choosing the best option among those depends on the requirement of the user. If a person is in need of an automobile on a daily basis, it would be better to buy one and if someone needs it only for some special occasions, he can opt for renting. The main benefit of renting cars is that a person can drive so many different cars, even premium and luxury cars, at a nominal cost.