People are now more than ever comfortable with the concept and act of renting. From homes, smartphones, movies, and music, renting and leasing of cars are growing in popularity. Which offers the best experience: buying a car or renting a car?
There are two major ways to be able to park a car on your driveway: leasing or buying. Which is the best for you depends on your financial situation. If you’re able to part with a lump sum of cash, buying a car is the best choice for the long term. If you’d like to rent and lease a vehicle, or buy it with a financed option from a bank loan, there are many separate options available to you. Which is best? That is a tough choice. Make better-informed decisions for yourself and your situation by reading the ins and outs of each option from the feedback, insights, tips, reviews and client’s opinions of those various strategies. Websites such as Reviews Bird are a platform where real-world people share their experiences and feedback of companies, products and services so that other people can know what to expect before spending their own money.
Buying a car with cash or a finance loan from a bank or financial institution will help you own a car once the payment period has completed. Buying a car outright will work out cheaper in the long run for owners if that is the best option for them when it comes to vehicle use. By using a financial loan, you will pay monthly instalments at an agreed amount (and sometimes they require an initial deposit) until the loan is repaid over a contract period of 3 to 5 years. Sometimes, you can pay the car off earlier if you come into more cash. There are no balloon payments to make at the end of the contract, there is no limitation on mileage, and when buying a new car you’ll most likely have its maintenance and service plan to cover ownership costs. Another option is what they call the PCP (Personal Contract Purchase) deal. This is like a finance loan with monthly instalments, but at the end of the contract you can buy the vehicle with a balloon payment.
Leasing is also often called PCH (Personal Contract Hire). This is, in effect, a long-term rental agreement. You will pay monthly installments as with when buying a car with a finance contract, and then you will simply hand the car’s keys back to the dealership once they have concluded the lease agreement. There are strict limitations and clauses in these contracts. Most agreements include mileage limits: if you exceed them, you pay per mile over the agreed range. Others include penalties for damage and hefty fines for cancelling the deal prematurely.
It all boils down to this: the best long-term option is to buy a vehicle. If you’d like to change cars every two to five years, then leasing is the cheapest way forward. Assess your motoring needs and financial position before committing to either option.