Anyone who wanted to access a car had, traditionally, two ways to do it: buy it in cash or through financing. However, in recent times a third alternative has begun to become popular, which until recently was reserved exclusively for companies: renting. That is a particular type of car rental, long-term; usually between two and five years. It may be convenient in certain cases, while not in others.

Why would someone choose to rent a car instead of buying it? One of the main advantages of this system is that it does not require a significant outlay when purchasing the vehicle. When buying a financed car, there is usually a requirement for a down payment known as “down payment”, which is usually around 10% of the car’s total value. On the other hand, when accessing a car by renting, all the expenses are distributed in installments corresponding to the duration of the contract.

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Comfort, the greatest advantage of renting

However, the most important benefit of accessing this type of rental car is the comfort it provides. A convenience due to the fact that the payment of the monthly renting fee covers many of the services necessary for the maintenance of the vehicle: periodic inspections in official workshops, coverage of breakdowns, tire changes, comprehensive insurance, and, if necessary, vehicle replacement. Furthermore, many of these contracts also include roadside assistance service, claiming fines, management and payment of taxes, and technical vehicle inspection.

Many renting companies offer the possibility that the user can buy the car in question at the end of the rental contract. However, if after paying the monthly fee during the years of the contract, you decide to buy the car, in the end, it will be more expensive than if it had been bought in installments (and even more expensive, of course, than if it had been bought in cash).

This was determined by a recent comparison made by the Organization of Consumers and Users. In strictly economic terms, then, renting is only appropriate if the car is to be kept during the contract dates and not beyond that period.

Reasons why renting may not be suitable

In addition to the one indicated in the previous paragraph, there are several other reasons why renting may be an untimely decision. In the first place, a contract implies a commitment, and in cases where it is necessary to terminate it prematurely (for any reason: illness, move, change or loss of employment, etc.), companies stipulate penalties equivalent to half of the fees that remain to be paid.

Another factor that must be assessed is that you can travel a limited number of kilometers with the rented car, also established in the contract. The most common is that the maximum is 20,000 kilometers per year. However, this figure may vary depending on the user’s needs (which must, of course, also vary the cost of the monthly fee). If the user exceeds that maximum allowed by the contract, he will also be forced to pay the penalty.

One more element that can make some people doubt the convenience of renting is the obligation to go only to official workshops and adhere to all other conditions signed in the agreement. Ultimately, the user must remember that the vehicle is not their property, a fact that, at times, can also represent a compelling reason to discard this option.

Tips for before deciding (or not) for renting

The OCU offers some recommendations for those who have opted for long-term car rental, or for those who are considering it. The main ones are the following:

Look and compare. There are companies specializing in renting and car brands themselves, and even banks increasingly offer cars for rent. Take time as you need to analyze models and costs and decide on the most appropriate one for your particular situation.

Estimate the distances to be covered. A maximum of 20,000 kilometers each year is equivalent to about 55 kilometers per day. Many people can be more than enough, but if someone needs the car to join long distances, they should keep it in mind to avoid the penalties. The amount of these is set in the contract: an amount of money for each kilometer that is exceeded. If during term of the contract, the user realizes that his previous calculations were wrong, or if his activities were modified and for that reason, he must travel greater distances, he can propose to the company to recalculate the fee.

Ask about the purchase option. In general, renting companies do not set a value for the vehicle purchase option at the end of the contract: they only offer an estimate. The final figure is given when the contract ends, based on market values ​​at that time. Beyond the fact that -as already mentioned- the total cost of a vehicle purchased in this way (all the renting fees plus the final payment) ends up being higher than if the financed car is purchased, it is advisable to find out as much as possible about it. The question before signing the agreement.

Read the contract carefully. This is valid advice for any commitment that a consumer is going to sign with a company. But in a case like this, in which there are so many values, clauses, and conditions at stake (and in which, for a not so important difference in money, you can buy a financed car, with all the aforementioned differences in the case), paying special attention to all the points of the agreement becomes essential.