If you’re in the market for a new car, you may be wondering whether you should rent, lease, or even look to buy the vehicle outright. Each option has its own advantages designed to suit the needs of different circumstances so it’s important you weigh up all of the pros and cons before you commit to any agreement. Here’s what you need to know to make an informed decision.
Renting is perhaps the simplest solution to getting a new car, as long as you don’t have any interest in ever actually owning the vehicle. Most car rentals are done over a short period, but some companies like Shelbourne Motors also offer longer deals for those who need it. The price you’ll pay is typically calculated by the length of the contract. The longer the contract, the lower the cost per day. This is ideal for someone who only needs a car temporarily, such as when you’re on vacation or while you’re waiting for your usual vehicle to be repaired.
If you’re in need of a vehicle for a longer period, leasing may be the best option for you. There are several different kinds of leasing agreements, but the two main ones are a personal contract hire (PCH) and a personal contract purchase (PCP). The latter gives the option of purchasing the vehicle at the end of the contract, while those in a PCH agreement will have the option of leasing a different vehicle or even switching to another supplier entirely. Like renting, you’ll still be responsible for damage and any excess mileage you incur, which will be paid at the end of your contract.
Finally, you could consider buying the vehicle outright. This will usually give you the most options, as you can customize the vehicle to your exact needs and taste. The biggest benefit is the ability to eventually sell the vehicle and recoup some of your expenditure. However, it’s important that you understand that the car will have depreciated in value significantly by this time. Generally speaking, a new car will lose around 40% of its value in the first year. In some instances, leasing may actually be a more cost-effective solution for those who want to drive a brand new car without breaking the bank.