Should you rent a car or buy one?

Should you rent a car or buy one?

Whether you buy or rent a vehicle, both options, come with their share of pros and cons and therefore, be certain what you choose.

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Should you rent a car or buy one?

Since long, the car has remained a symbol status. However, with the pace of time, it is now more of a necessity than a mode to flaunt one’s luxurious lifestyle. Buying car is nowadays more accessible than ever, thanks to the option of EMIs offered by the manufacturers. You can bring home your vehicle and continue to pay the price in easy instalments. However, many reasons could still find it cumbersome to own a car possibly due to lack of permanent parking space, high maintenance expenditures, and so forth. The option to rent a car is suitable in this regard. Whether you buy or rent a vehicle, both options, come with their share of pros and cons and therefore, be certain what you choose.

Buying a car

As you buy a car, you own it permanently for the rest of the time until you sell it off. You have two ways of buying a car; by utilising your savings amount and purchasing the car at one go and secondly, by paying EMIs for the vehicle. However, since it involves a huge sum of money, it is necessary to secure your car with reputed car insurance.

Renting a car

People who do not travel frequently decide to rent a car than buy a brand new one. This saves money, no doubt. Something to worry about this idea of travelling is any damage to the car can cost you a fortune. When you rent a car, you pay per hour basis or per day basis. The clause depends on the company providing you with the rented car.

Buying Vs. Renting

Your decision to buy a car or rent it will solely depend on your present economic condition and your needs. Undoubtedly renting is much cheaper than buying, so of course, any rational being will prefer it. The moment you buy a car, the car depreciates in its value. On selling the same car, you bought for Rs 10,00,000 may fetch you about 50 percent less after just one year. While you spend around Rs 10,000 to Rs 15,000 per year when you rent, buying a car will cost you Rs 10,000 to Rs 15,000 per month as an EMI.

Renting comes with stress whereas buying a new car, you gain the freedom of owning it. While buying a new car saves you from damaging a rented car, a car insurance comes as a rescue when your own car is damaged.

Why avail car Insurance

These insurances are a precaution to manage unwanted situations with great élan. If you must go on a long journey and your car requires conditioning, then insurance will help you to avail service at a minimal or no cost at all, anywhere throughout the country, depending on the car insurer. It is not possible for insurance to cover every kind of expense; hence, it includes some and excludes some.

The car insurer is likely to pay for:

  • Damages and loses because of human activities like theft, terrorist activity and more.
  • Damages and loses due to natural calamities like frost, flood, earthquake, cyclone and so forth.
  • Third party legal liability (protection offered to the affected third party who is not a part of the contract).
  • Personal accident covers of Rs 2 lakhs and optional cover for co-passenger.

However, the insurance will not bear the liability for damages caused by mutiny/war, depreciation, electrical/mechanical breakdown, natural ageing of the car with ordinary wear and tears.

To avail the insurance, one must inform the company as soon as possible after the accident and then rest assured.

To sum up, merely owning a car is not enough; you will have to keep it running, and the insurance assists you in doing so. Therefore, it is mandatory that you go through the terms before you buy car insurance online that suits your pocket and possibilities in future. On second thoughts, if you do not want to own one due to certain reasons, then the option to rent a car is wide open. It sets you free from worrying about maintenance related issues and requires you to pay only for the distance covered during your journey with the car. It is now up to you to decide the suitable option, depending on your requirements.

Happy car ride!

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