Whether you are staying abroad for vacation or work chances are you have thought about or considered long-term car rental. Renting a car for a longer span of time has its advantages and disadvantages over buying a car where you are currently staying temporarily. Buying a brand new car can require a lot of paperwork and commitment and if you are just staying in place temporarily and with no plans to take it with you then renting a car is the better choice. Selling a car can also be difficult if you’re leaving quickly and you are most likely to sell it cheaper than market value to dispose of your car before leaving so it makes sense for ex-pats or those living in a country temporarily to rent a car long term than buying one.
Things to Consider When Buying a New Car vs Renting Long Term
Buying a new car typically requires a lot of thought and even more so if you are in a new country or just living in a place temporarily. Purchasing a car can tie up a lot of money whether you are paying the car in cash or taking out a loan.
Pros of Buying a Car
Owning your own car definitely is great but if your working in another country then importing your car can be a hassle which can also involve a lot of paperwork and taxes. Here are some of the positive things if you are considering buying a new car.
- You Own The Car: You have the option to ship it back to your home country or take it to your next destination.
- You Can Customize Your Car: If you own the car you can customize it to whatever you want to use it for. You can change the rims, and tires, upgrade the entertainment system, and even tune the engine and suspension.
- You Can Don’t Have to Worry About Limits: You don’t have to worry about the mileage limits on your car.
- You Have the Option to Sell: When you own the car, you have the option to sell it.
Cons of Buying a Car
Car ownership brings with it a lot of responsibilities that require long term commitments like periodic maintenance, and other costs like car registration costs that are not normally found when you are renting a car on a long term basis.
- Monthly Costs: The monthly cost of ownership is higher than the longer-term rental, especially if you are taking a loan to pay for your car.
- You Need to Pay for Maintenance Cost: Since you own the car, you need to continuously pay for the maintenance costs to keep your car in running condition.
- The value of your car depreciates: Car value depreciates both with age and mileage and if you are using your car for work then you even might need to price it lower than market value to sell it.
Advantages of Long-Term Car Rental
There are plenty of advantages if you are considering long-term car rental, especially if you are just staying in the country temporarily for work, and vacation. One of the best advantages is that you don’t need to worry about the car when you leave the country.
Pros of Long Term Car Rental
- No Big Down payment: Long-term car rental requires significantly less security deposit compared to the large sum of cash that you need as a down payment when you take out a car loan.
- Less Paperwork: You don’t need to worry about the mountains of paperwork just to get approval for the car loan.
- Less Redtop: The car rental agency will take care of the car’s registration and can assist you with insurance for your car, yourself, and your passengers.
- Less Upfront cost: You can quickly drive off the lot with lesser upfront costs.
- You Don’t Have to Worry About Car Value: You don’t need to worry about the car’s value when it’s time for you to leave the country.
- Flexible Terms: You can quickly change and amend the terms of your rental contract depending on your needs and budgets.
- Quickly Change Vehicles: You can quickly change vehicles depending on your needs. If you feel that you need a larger or smaller vehicle, you can quickly change your rental car.