Here we dig into everything you need to consider when Buying a Luxury Car vs Renting a Luxury Car, to answer the question – What is Better? To buy a Luxury Car vs Renting One.
Is it better to buy or rent a luxury car? This is one of the most frequently asked questions when it comes to luxury cars. Most people ask this question because it is well-known that luxury cars are very expensive, and the running cost and depreciation are high. As such, not everyone is willing to make such a huge investment only for ‘luxury’ except if it will benefit them in the long run.
The economy has really changed; gone are the days when you need to own a car before driving one. With the sharing economy fully operating in almost every part of the world, people now also have the option of renting a car. Not just a cheap car, but high-end luxury cars too.
Although luxury cars are more expensive than regular cars, they are fun to drive. Aside from the exterior and interior beauty, there is something about driving those sleek, stunning exotic cars – the comfort, speed, powerful engine, performance, safety and entertainment gadgets and the prestige that comes with driving one.
The euphoria that comes with driving one or watching others drive them makes you wonder how you can get your hands on one. This leaves you with the option of either buying or renting.
When it comes to buying or renting a luxury car, there is no clear answer to which of the options is better. The best choice between buying or renting a luxury car largely depends on individual priorities.
To some, so long as they can afford to buy it, they go for it. Meanwhile, others think it is a waste of money, so they will rather rent when they need one. The latter group of people will be just happy to drive a regular car for everyday drives.
But the question is, which option between buying or renting is better? Especially when considering your individual circumstances?
Each of them has its pros and cons you need to consider before choosing the option that will work best for you.
Let’s move forward by defining what we exactly mean by ‘buying’ and ‘renting’…
What Is Buying A Luxury Car?
Buying or purchasing a luxury car is an exciting, exhilarating experience. Buying a luxury car means going to a luxury car dealer, making full payment for the car at a go or in installments depending on the agreements with the car dealer and completing all the necessary paperwork needed.
You can fund the purchase with full payment, or instead, you can fund it through a finance or lease agreement.
When you complete all the procedures, voila! You are now a new luxury car owner!
You don’t have to dream about driving one anymore, but you can now cruise in your car, enjoying the beautiful interior and exciting accessories.
Owning a luxury car costs a lot of money, not only to buy but to maintain it.
Sometimes after buying, some people may even find out that it is not their dream car or what they really want. So, before buying and owning a luxury car, you need to carefully research the car, which most people wok short on.
- The type of luxury car you want
Is it a sedan, sports car or SUV?
- The price
Is it within your budget? Is it the correct market price? Can you afford it without sweating or your bank account crying?
- Safety features
Does it come with the safety features such as ABS, side-front airbags, curtain airbags, traction control, and stability control and are they really more advanced than those found in a standard car?
- The driving performance
Are they better than those of an average car?
- Other features
These include interior design, accessories, technology, speed, quality of paint job, space and comfort.
Visit different car dealers to see and compare what they are offering before negotiating. Again, you need to use your brain here as well as your heart. Not just the heart!
After negotiating and coming to an agreement with the car dealer, go through the deal, fill out all the paperwork, and both parties (you and the dealer) sign the paper before any payment.
What Is Renting A Luxury Car?
Just like every other sharing economy where a property can be rented or hired to be used for a period of time, vehicles too can be rented. Yes, any type of vehicle, even a luxury car.
So what does renting a luxury car entail? It means the hiring of the car, not just any car but a luxury car for short or long term use at a fee.
Now, let’s turn on to the heart of this article; Buying a Luxury Car vs Renting a Luxury Car – What are the Similarities and what are the differences?
Buying a Luxury Car vs Renting a Luxury Car – The Similarities
The similarities between buying a luxury car and renting a luxury car is that with both
- you have access to a private means of transportation in a luxury car.
- You will enjoy the prestige that comes with driving a luxury car.
- You will enjoy a higher level of comfort, the best entertainment technology, a plush carpet and a leather-trimmed interior fit for a king.
- The luxury car can be almost brand new or used.
- Compared to a standard car, buying or renting a luxury car is more expensive than buying or renting a regular car.
- Enjoy the same level of advanced safety features – standard traction control, stability control, side-front airbags, curtain airbags and antilock braking systems…etc.
Buying a Luxury Car vs Renting a Luxury Car – The Differences
|Buying a Luxury Car
|Renting a Luxury Car
|You are the sole owner of the car after paying the car dealer, and filling out and signing all the paperwork.
|The rental company is the legal owner of the luxury car, not you. You have to pay and sign a contract with the owner to hire the car for a certain duration of time.
|You are responsible for the annual payment of the car insurance and vehicle tax. You are also responsible for the cost of services, maintenance and repair.
|The rental company is responsible for insuring their car and the payment of vehicle tax. Also, You don’t have to pay for car maintenance. Although, you may have to pay for some kind of excess insurance with one or two bills depending on the agreement you signed with the renter.
|Car depreciation is high when it comes to a luxury car, and as the owner, that cost is on you.
|The depreciation cost is on the rental car company, but not you (the renter).
This is a great win and saving for the renter.
|You can sell the car off when you no longer want to use it or put it up for rent to earn an extra income, if your country allows you to do so.
|You don’t have any right to sell or rent out the car. It is not yours.
You have to return it back to the rental on the agreed date or time. If not, you will be charged an extra fee for breach of contract.
|You are stuck with the same brand model of a luxury car for years.
|You, as the renter, have the opportunity to enjoy and experience driving different brands and models of luxury cars, even the latest model. That’s freedom!
|You have to drive yourself or hire and pay a driver.
|Some rental companies organise you to enjoy the services of a chauffeur. That itself a luxury!
|It is cheaper for long term and frequent luxury car users.
|Cheaper for occasional and short-term luxury car users.
|There is no limit to the mileage, how far and how long you need to drive. So you can drive as you want.
|There is a limitation on the mileage, how far and how long you need to drive. Also, breaking any part of the contract attracts extra fees or penalties.
|You can customise the car, as you like. It’s your car!
|You have to return the car the way it was when you rented it.
When Should You Not Buy a Luxury Car?
Don’t buy a luxury car in the following circumstances applies to you.
- You cannot afford it.
Owning a luxury car doesn’t mean only the cost of purchasing it. In addition, you will also need to consider the cost of maintenance, insurance, services, and repairs, and the depreciation.
If the total cost is too expensive for you or way out of your budget, stay away from buying.
- You need the luxury car only for a short trip or for a vacation.
If it is the case, try to borrow a luxury car from someone known to you. But, buying a luxury car is never a wise option for you.
- You have not made up your mind about the type and brand of luxury car you want.
Do not buy a luxury car because the car dealer convinces you to because you may end up regretting it. Instead, rent the car to test drive and explore the different functions in the car before making any decision.
- You need the car to use periodically and not frequently to justify spending that huge amount of money for a luxury car.
- When you don’t like sticking to one or two car models for long instead, you prefer changing the models of the car you drive frequently.
In other words, you simply want to have the option of driving different types of luxury cars.
- You don’t have a parking space or garage to park the vehicle.
- You need it for only special occasions such as a wedding, prom, birthday parties, graduation parties or an alumina meeting.
When Should You Not Rent a Luxury Car?
Don’t rent a luxury car when, if you can afford a luxury car and one of the following circumstances applies to you.
- You need the car for daily or frequent use.
Renting a car becomes more expensive with time when you are always on the road.
- You always drive for many miles.
- You like driving the way you want and whenever you want without limitation so long as it is not against the law of the state.
If you are this kind of a person, then renting a luxury car is not for you because most car rentals have a limit on the speed, distance and how long you can drive or keep the car. If you default in any aspect, you will pay a fine as a penalty. This usually involves a large sum of money.
Remember, most luxury car companies can track their cars, and if they find out that you took the car to a track, you might be liable for the cost of a new car.
- When you like customising a car to your taste.
In a Nutshell
Both buying and renting a luxury car have their pros and cons. And, when it comes to making a decision and choosing between buying or renting a luxury car and which is a better option, it all comes down to your budget and how much you are willing to spend to use the vehicle.
The decision also depends on what you need the luxury car for, how long and how often you need to use the car.
If you need the car for a short term use, a short trip or only use it occasionally or a few times in a month or year, and maybe you also want to have a choice of switching and trying other brands and models, then renting the car will be a better choice for you.
But, if you will need the luxury car for long-term use, cover long distances, for frequent drives, and have the option of customising or selling the car, buying a luxury car may be a better option for you.
Let me know what you think?