Luxury cars are expensive, that’s no secret. Not only are they expensive to purchase, but routine maintenance costs are high as well. With the knowledge that a car’s value drops with every few thousand miles and every passing year, it can really make you start to wonder if it isn’t a better option to just rent a luxury car instead.
These days, long-term rentals are possible and some people do use them. While buying a car is the traditional route, the market is beginning to change and you’ll hear about more and more people choosing to rent their car.
Although luxury cars aren’t typically something you’ll find on a vacation car rental company, the option to rent them is out there if you know where to look and what you want. However, not everyone may know immediately whether buying or renting a luxury car is better for their lifestyle, so here’s a quick guide to help set you in the right direction.
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Pros of Buying a Luxury Car
When you buy a luxury car from used car dealer in lansing, you have immediate bragging rights. Not only will you pull up to every event in a stylish and eye-catching car, but you’ll also be able to say you own it. Perhaps it’s been your lifelong dream to own a sleek black BMW or a neon yellow corvette.
Choosing to buy a luxury car means you also have the right to sell it at any point in time. All profit you make from the car will be yours to keep and you can use this money to put towards another vehicle of your choosing, whether it’s also a luxury car or something less flashy. You can also trade-in your car if you’d like to upgrade to a newer model.
Luxury cars are sometimes fun to customize and when you own the car, you can do this whenever you want! Add some flames to the side or get a custom, matte paint job.
Cons of Buying a Luxury Car
Unfortunately, buying a luxury car also comes with some unavoidable cons.
While you do own the car, you’ll have to make monthly payments that are often much more expensive than the monthly costs of renting a luxury car.
You may need to take out a loan in order to purchase a luxury car. This will result in you paying more in total due to interest on the loan. It also makes the process of buying a luxury car more complicated as you’ll first have to go through the hoops of applying for and being approved for a loan that can then be used to buy a luxury car.
All extra costs such as repairs, maintenance, tickets, and insurance are on you. If your car is new and has a warranty, you’ll be able to avoid paying maintenance costs for a little while, but once this goes away, you’ll have to pay for all repairs and insurance costs.
Unfortunately for luxury car owners, average maintenance costs for popular luxury car brands are some of the highest in the industry. In the short number of years, your car will be with you, you’ll pay a small fortune in maintenance and repairs.
Over time, your car’s value will depreciate which means that even if you do sell it, you likely won’t make a profit from it. Add in your repair costs and general maintenance that you’ve had to do and you’ll find it’s not a very reliable investment.
Once you calculate your monthly car payments (including insurance, maintenance and repairs, and other miscellaneous fees such as registration and taxes), you’ll likely be surprised to discover it’s more than simply renting your luxury car.
Pros of Renting a Luxury Car
Renting a luxury car may not be the first thing that comes to mind, but it’s a viable option that’s becoming more and more mainstream. When you rent a luxury car, you can pick and choose your favorite make, model, and color. Rental companies have a large garage full of luxury cars that are just waiting to be chosen and you’re free to choose your favorite.
In many cases, renting a luxury car is actually quite a bit cheaper than buying one. You’ll still have a monthly payment, but it is often lower when you’re renting a car instead of paying off a loan or car payment.
When you rent a luxury car, you typically aren’t responsible for maintenance costs and general repairs. You can use the car for as long as your contract lasts and when it’s finished, the rental company will take care of all maintenance and repair costs.
Similar to the advantage above, you can often rent a new model for a lower cost than buying one. Additionally, when your contract is up, you can start a new contract for the latest and newest model if you want, or continue with your same car should you so choose.
Renting a luxury car makes upgrading your vehicle easier. At the end of your contract, you’re free to start a new contract and pick a new car. This can allow you to drive numerous different cars over multiple years and you’ll always be in style.
Cons of Renting a Luxury Car
Just like with buying a luxury car, there are cons that come with renting one.
When you rent a luxury car, you don’t own the car. This means you can’t sell it or customize it at any point. If you buy a luxury car, you can usually sell it and make a bit of money at the end but when you rent a luxury car, you don’t get any money back at the end of your contract.
In some cases, there are mileage limits on renting a luxury car. This isn’t always the case, though, and there are contracts with unlimited mileage. Before you sign a contract, consider the pros and cons of limited versus unlimited mileage.
Making Luxury Cars Affordable
Although renting a luxury car isn’t normally what kids dream of, it’s an incredibly affordable option when compared side by side with buying a luxury car. You often aren’t responsible for maintenance and repairs and the monthly rental fee is usually lower than a monthly loan payment.
