It’s very exciting to buy a new car – until you consider the liabilities you have to take on in terms of payment and paperwork. Is it perhaps a better option to rent-to-buy vs buying a vehicle? Which of the two options will make the process of acquiring and owning a car easier? Let’s take a look at the pros and cons.
Buying a car: pros and cons
Few South Africans consider leasing when they plan to acquire a car, because most of us want to own our vehicle. When you buy a car, the vehicle is your own from Day One (aside from the obligations you incur to your financial institution when you acquire vehicle financing). You don’t have to worry about mileage limits, or charges on your wear and tear, and if you decide to sell or trade, you are free to do so. On the downside, however, you will be faced with higher monthly repayments, and you will normally have to put down a sizeable deposit. Plus, having bought the car, the onus is on you to maintain it. Wear and tear, as well as all other costs, are on you. Finally, if you are having trouble getting credit, buying a car is probably not going to be an option for you, unless you have the capacity to pay in cash.
Long term car rental: pros and cons
Long-term rental is an increasingly popular solution to the problems that come with purchasing a car. You can get a very decent car at a lower monthly cost, often with no deposit required, and you get warranty protection for the full period of the lease. Your credit history may or may not be a problem, depending on the rental company in question. The downsides are mileage restrictions, the potential for extra fees, such as excess mileage, early termination, and a variety of other things often hidden in the fine print. You may also have to take out additional insurance coverage so that the rental company can rest assured that their asset is protected. Then, at the end of the lease, you have to get another car anyway.
Renting vs buying: which is better?
As you can see from the pros and cons we’ve outlined, the benefits of buying vs selling are fairly well balanced. In the end, however, it is better to be able to own your car and take responsibility for its maintenance yourself. Then again, this is hard to do if you don’t have a large enough deposit, or have a bad credit history. The best thing is that you don’t have to choose one or the other. You can get the best of both worlds with a rent-to-own option.
Earn-a-Car offers you the opportunity to enjoy the benefits of renting and buying, with a minimal deposit, and without your credit history being a factor. We make sure that your credit history and finances do not impact your chances of driving home in your own car. With our rent-to-buy car finance option, you have the opportunity to get behind the wheel of a car you will eventually own! There is no need to ponder whether to rent-to-own vs buying a vehicle. You can sign a rent-to-own agreement with the benefits of leasing, which will ultimately lead to you owning your car. To find out more, go to our website or give us a call today.