Renting v/s Buying A Car

Things to Consider If You Cannot Choose Between Buying or Renting a Car:

1. Stability:
   In case you have a job where you do not need to travel or move constantly then in that case it is better to buy a car than to rent one. If you rent a car, then you cannot customise it according to your needs and desires but if you own a car then you can customise it as you want and make it most suitable for yourself. Hence, you need to see if renting is better or buying a car is.

2. Temporary Staying At A Place:
   In case you visit a place and stayed there for a definite period of time such as less than a year for any reason like work or tourism. In that situation, it is best that you rent a car to prevent yourself from driving your car from one place to another. If you plan to stay at multiple places for a prolonged period of time you should consider renting a car, in that way you can save cab charges.

   

3. Financial Steadiness:
   We all know that the value of assets decreases over time and the car is a depreciating asset. So, the value of your car depreciates over time and the instance you take your car outside the showroom the value of your car decreases by 10 per cent. Also, by the end of the year, the value of the car goes down by 30 per cent. Therefore, if you plan to buy a car you should be certain about your financial condition. You need to pay the downpayment, EmIs, car insurance, service, and other expenses.

4. Job Security:
   Buying a car through a loan may not be the best option if you do not have a stable job. In case you lose your job it will be difficult for you to pay the loan EMIs on time and defaulting on EMIs could worsen your credit score. Therefore, renting a car when you do not have a secure job is not a good idea. However, you can rent a car for the time being and you can get almost all the services as owning a car.

5. Monthly Payments:
   If your rent a car, you do not have to take a loan for that. You do not need to worry about monthly EMIs and interest rates. You only have to pay the monthly fee charged by your service provider. The monthly charges you pay for renting a car are often lesser than the EMI against a car loan. It is better to rent a car if you are cannot pay for large EMIs for your car.