Whether you are looking for a luxury car, a convertible, or an SUV, you’ll need to decide if you’re going to lease or buy a new vehicle. To make this process a lot easier, we’ve put together a list of key differences between buying and renting a car.
The main difference between buying and renting a car is the ownership. When you buy a vehicle, you legally own the car & can use it for as long as you want. When you rent a vehicle, you are leasing it from a dealership for a fixed time.
Many people choose to rent a car since the monthly payments are lower than purchasing a vehicle. To make a better estimate of your payments, you can find car financing calculators online.
Vehicle Sale or Return
After you buy a car, you can do what you please with it. Whenever you’re willing to get rid of your car, you can choose to trade-in or sell it by yourself. If you opt for a lease, it’s a lot easier. Once your lease is over, you can drive it back to the dealership, hand them the keys, and walk away. The downside is that once you walk away, you won’t be any richer.
End of Term
Whether you choose to purchase or lease your car, both options have a specific period during which you will need to make payments. The best part about buying a car is that there are no more payments after purchase.
While leasing a car, there is a fixed number of miles that are agreed upon. When returning your leased car, mileage needs to be at or below the agreed-upon limit. If you exceed the amount, you’ll be charged an extra fee. When you purchase a car, you can drive as far and long as you wish. Whether you choose to rent or purchase a car, ensure you weigh your options to find a deal that suits you the best.