According to data released in industry insiders, car sales are showing positive signs since 2016. Last two years have been extremely positive, since the industry’s downfall due to 2008’s great recession. Analysts believe that these numbers would continue improving during the next few years. Most importantly, interest rates on bank loans for new as well as used cars remain low in most of the states. People are opting for five, six, and even seven years loans on crossover, truck, and cars. But, is buying the best option for everyone or can renting car be the best alternative? Here are some tips from industry experts to help you choose between hiring and buying.
Number of miles that you plan to travel
Experts suggest that if you plan to drive more than 15,000 miles per year, it is advisable to opt for your own vehicle instead of leasing one. Renting a car can prove to be affordable if you drive up to 12,000 miles per year or less.
Confused about buying or leasing a car?
If you are planning to buy a car, it is obvious that you would have to make upfront payment and should also be ready to pay considerably amount of monthly installment. On the other hand, you do not have to pay much as upfront payment while renting car. Monthly rental payment also remains reasonable and affordable for most of the vehicles, unless of course, you plan to rent Rolls Royce.
Leased cars come with their own insurance, and you do not have to worry about their repair work, maintenance, tires, etc. On the other hand, if something goes wrong with your own car, you need to be ready to take care of all the expenses and monthly/annual insurance premium as well. If you do not have emergency roadside assistance cover, you need to be ready to get stranded as well. If you can stick to one car for several years down the line, leasing may not prove to be financially feasible option for you. If you have limited amount to spend, but wish to own a car, you can also consider rent a car. While purchasing used car, you need to have good knowledge about the vehicle that you wish to buy. Plus, make sure that you buy it from trustworthy dealers.