Are you familiar with the concept? lease a new car – instead of buying it right away, the payment is split into smaller payments over the agreed-upon rental period – but you can rent one Old car? The good news is that you can, and it could be an option well worth considering.
You can say, used car rental gives you the best of both worlds. Your monthly payments are smaller if you new rentalbut you still get a newer model that’s cheaper to run and has better technology if you buy an older car right.
But how exactly does a car rental contract work? What are the advantages and disadvantages? Read on to find out.
Is renting a used car better than buying?
In some ways, whether renting a used car is better than buying it is up to you.
If you can afford to buy a new car then that makes perfect sense. No need to worry about monthly payments and it can be cheaper because you don’t have to pay interest.
All is well if you’re willing to splurge, but what if you’re not? Well, renting a used car can make a lot of sense. You don’t have to make a ton of money to get the old car you’ve been using in the showroom. It could even mean that you can buy that dream car that you previously dismissed as too expensive.
How does used car rental work?
Predictably, renting a used car works like just renting a new car – diagram – the car in question is used.
Instead of upfront, you pay an initial payment followed by smaller monthly installments over an agreed period of time. This usually lasts from 24 to 60 months.
You will have a set annual mileage limit – with a mileage penalty fee if you exceed it – and, unlike in a PCP financing agreement, no option to purchase the vehicle outright. with final payment. You pay the membership fee, return the car and move on to the next trip.
What is the oldest car you can rent out?
There are no specific numbers, but as a general rule you can rent a used car from a franchisee – so it will probably be no more than three years.
The advantage is that the car will be taken through the manufacturer the program used has been approvedso it will have to be checked multiple points and come with warranty.
Many manufacturers also include break and MoT insurance (a payment for your first MoT if your car needs work to pass).
Is renting a used car cheaper than buying a used car?
Sure is not. Car rental means you won’t have to pay interest if you buy a used car with all your cash. Plus, you miss out on savings you could have made buy a private car.
However, there may be exceptions. Assuming you buy a car that’s six months old and sell it after 12 months, it’s likely that the depreciation expense will be much larger than any savings you’ve earned on interest.
What are the advantages of renting a used car?
The main advantage of renting out a used car is that you get it by making several, relatively small monthly payments – rather than having to pay the entire lot up front.
That might be a reasonable thing to do. Instead of getting your hands on a wrong car of ropes, potentially malfunctioning, as well as costly taxes and fuel, you can get a newer model that will be more reliable and cheaper to run without worrying about unexpected costs. It should also have a warranty, and you can also factor the cost of maintenance into your monthly payment.
But because you’re still buying second-hand, you’ll save significantly compared to renting a brand new car – effectively, you’re taking advantage of the hefty discounts most cars offer. suffered in the early years. You can call it win-win.
What are the disadvantages of renting a used car?
One of the main downsides of renting a used car is that you’ll never actually own it, which can be frustrating for a number of reasons.
Suppose you buy a new car on a PCP Financial Agreement, when you reach the final deal, you’ll have the option of paying the ultimate bubble and owning the car – appealing because you’ll know the car has been properly cared for. It’s a less stressful experience than buying a car you didn’t know was cherished.
On the other hand, if you buy a used car right away, run it for a few years, then decide to trade it in for something else, you can trade it in for a replacement, getting some cash back. comfortable. otherwise miss out.
Finally, buying a second car right away also gives you more flexibility – you can go whenever you want without incurring any additional fees. And you’re not tied to an annual mileage limit, which can be costly if your circumstances change and you suddenly have to drive more.
Want to rent a new car instead? Our test list of best rental deals…
