If you had to choose between renting a car or buying one of your own, it might be a tough decision-making process. You would want to weigh out the positives against the setbacks and carefully consider all the factors since you cannot afford to make an expensive mistake. Transport has become an essential part of an individual’s life in Canada. Most of us spend at least 20% or more of our income on transport, depending on the mode of travel we choose. Whether it’s public transport or your own car, every mode has a varied cost involved. But the question is, Is renting a car actually cheaper than owning one? Let’s find out.
Leasing a vehicle
A survey shows that Canadians use leasing a vehicle as a popular alternative to financing. Leasing is basically a long-term monthly rental system that is between the user and the dealer for 12 months or more. Once the contract is over, you will have to return the car back to the dealer. But, with a finance agreement, what you pay monthly until the loan is paid off goes towards owning the vehicle, where you will eventually gain 100% ownership of the car.
Leasing also has the flexible option of upgrading your car to a newer model after three to four years. You can also negotiate several other factors like interest rate, the number of kilometres and any other additional charges involved.
Renting a car
Renting and leasing are somewhat similar. Car rental companies are available almost everywhere in Canada. Some of the biggest and well-known car rental companies in Canada are Avis, Hertz, National etc. You can rent the desired vehicle that fits your needs for a long period of time. Renting a car gives you the advantage of paying only for the period of use.
You can use several tools that are available online to find the cheapest and best deal offered by many car rental businesses in Canada. You can probably choose the option of renting a car, until you save up for your dream car.
Buying a car
When you buy a car, you contribute the whole amount at the time of purchase or take a car loan, unlike monthly payment when renting or leasing a car. Buying a car is an asset. You can either choose to buy a brand-new car or a used car from a dealership. You can find individual sellers who might give a better rate compared to a dealership and the vehicle might be in better condition too! Do a test drive and a thorough check of the condition of the vehicle and evaluate the car’s value. Be sure to check all the documents when the car ownership is passed down to you.
Once the car is yours, you have all the freedom to modify and customize it. You have no limitations on allocated number of Kilometers per month! You can be behind the wheels as much as you like!
However, choosing to either rent or buy a car of your own is entirely based on your personal needs, situation and preferences. It is not an easy decision to make and there’s no direct answer. So be sure to check all the pros and cons and decide the best move.
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