Car renting or vehicle renting services are becoming very popular among people. Now anyone can get a car they wish for as long as they need with a nominal amount. Earlier, it was hard, but now there are car renting companies in every corner of the street. However, many car companies are giving offers to people to buy a car on installment basis. This has made many people confused on whether to buy a car on installment basis or to grab a car on rent. If you are one among those people, the following is a brief comparison for you to choose between renting and buying a car.
The cost of availing a car on rent and also on installment is different. If you are getting a car from a car renting agency, you will have to pay only for the period for which you are availing the service. However, some car renting companies may ask for a security deposit and it will be refunded full or partially depending on the condition in which the car has been returned. Hence the total expense incurred during a car rental deal will be the rent amount and also the security deposit.
If you are planning to buy a brand new car on installment basis, you will have to pay the full amount of the car within the time period specified by the company. While going for an installment purchase agreement, the consumer would have to initially pay a sum of money as down payment and can pay the rest on equal monthly installments. However, he will have to pay the interest charged on the agreement along with the installments. Therefore, the expense will be very high compared to rental deals.
There are many car renting companies in most of the major cities and towns. It is also possible to get in touch with a car renting agency through internet. If you are in need of a car for a specific purpose, you can visit any car renting company directly or contact them through their website and only have to provide a valid identity proof and the security deposit to get the car. There will not be much time consuming paperwork or complex procedures to get the same.
On the other hand, buying a car on installment is a time consuming process. Firstly, the company will check your credit worthiness by examining your bank statements and the time taken to complete any other loan agreements you have entered prior to this deal. Only if they are satisfied with their reports, they will allow you to get a car on installment. After this process, they will explain you the terms of the deal and there will be a lot of paperwork for entering the deal. In short, getting a car on installment basis is a time consuming process.
Ownership Of The Car
If you are buying a car on installment basis, it will be registered in your name from the day you pay the down payment. Hence you have the complete freedom of choosing the car, doing modifications etc. You can also use it any time you want without getting permission from an agency. In addition to that, you can even sell it to someone else if necessary. However, since you are the owner, you will have to pay for the repairs and maintenance of the vehicle. Moreover, you will be also responsible to pay the insurance charges for the automobile.
If you are getting a car through a rental deal, you can use it as per your needs till the date or time specified in the agreement but the ownership will always remain with the rental agency. Therefore, you will not be able to do any modifications on the same. However, the advantage of renting a car is that, you can get any car, even premium brands and models at an affordable rate. In addition to that, you will have to spend only for the fuel charges and not for the repairs and maintenance of the vehicle. Moreover, you will not be liable to pay the insurance premium since you are not the owner of the vehicle.
|Basis Of Difference||Car Rental||Buying Car On Installment|
|Time Required||Less time||Longer than rental deals|
|Ownership of the car||The renting agency will be the owner||You will be the owner of the car|
From the above discussion, you might have understood about the difference between car rentals and buying car on installment basis. We cannot simply categorize one as good or bad, because it depends on our needs and affordability. You need to make the selection as per your requirements and financial situation.