Is traditional car ownership or long-term rental more advantageous?

Najväčšia požičovňa áut v Bratislave

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Pros and cons of both forms of vehicle procurement

The topic of today's article will be a comparison of vehicle ownership, ie purchase or loan, with its currently very popular alternative - long-term rent. Do you prefer buying or renting? It's out of habit or you haven't made any comparisons yet, which might be more convenient for you? Let's look at the pros and cons of both forms of vehicle procurement.
In the ordinary but above all working life of everyone, or rather most of us, a car is a necessity rather than a prestige. However, cars still create us and leave us with a strong emotion. Emotion from their purchase, emotion from driving a new and fragrant vehicle, emotion from loud favorite music that sounds from quality speakers or emotion from soft seats or more and more conveniences that cars offer us. 


However, people's relationship to car ownership is slowly but surely changing. An ever-increasing trend in the world is to use the vehicle and not own it at all. Rather, the business sector is the one that sets the trend, because often companies are looking for ways to do things more efficiently and at what cost to save as much as possible. However, private individuals also stop perceiving cars as property and begin to look at them as a service that brings benefits. And enjoyment. Therefore, rental companies are also adapting to demand. Is renting advantageous for you as a regular motorist? It depends on how much money you have and how much ownership is important to you. 

The primary "advantage" of buying a vehicle, if we can call it that, was accessibility for individuals. It was one of the currencies in the decision, as you only needed a certain amount of cash and you were able to procure a vehicle. Until recently, rental companies or leasing companies did not have products intended for individuals, or they were not attractive, and they could easily reject you when applying for a loan or financial leasing. The following table compares the financial indicators of vehicle procurement. 

Example: Škoda Octavia 2.0 TDI in Style equipment
Purchase of a vehicle - a natural person
Purchase of a vehicle - a medium-sized company
AVIS car rental
Price list price with VAT
€ 28,700
€ 28,700
€ 28,700
Discount amount
0 - 10%
10 - 20%
20 - 30%
Average purchase price without VAT
€ 22,722
€ 20,327
€ 17,935
Sales price without VAT after 3 years of holding
€ 10,700
€ 10,700
X
Monthly costs of holding the vehicle without VAT
€ 333.96
€ 267.43
X
Monthly costs for insurance, service, tires, fees, taxes, interest excluding VAT
€ 179
172 €
154 €
Total monthly cost excluding VAT
€ 504.96
€ 439.43
€ 429.00
However, we at AVIS have our doors wide open to individuals as well. In addition to financial savings, we offer you many other benefits that renting a car brings. 

The rent you pay does not cover the entire purchase vehicle, but you only pay depreciation, ie the difference between the purchase and residual price of the vehicle at the time of its return. In addition, the lessor will relieve you of tedious advertising and negotiations with potential applicants, as the resale of the vehicle will be provided for you. Thanks to long-term cooperation and volumes, rental companies have also agreed on more favorable conditions for the purchase and insurance of vehicles, which they can further offer to the client. The monthly rent includes a package of services that includes motor vehicle tax, compulsory contractual insurance, accident insurance, seasonal vehicle footwear, registration fee, vehicle check-out, warranty service, assistance services, as well as a prepaid annual mileage. You can easily rent a car with comprehensive care and you can change your fleet or vehicle regularly. You don't have to get involved where you can get winter tires, where you will go to get the vehicle, how much you will spend registering the vehicle, with whom you will insure the vehicle or worry about whether you have forgotten to pay tax. 

Services included in the price
Purchase of a vehicle
Car rental
Vehicle registration
NOT
YES
PZP insurance
NOT
YES
Accident insurance
NOT
YES
Regular service maintenance
NOT
YES
Tires
NOT
YES
Slipping, storage
NOT
YES
Vignette
NOT
YES
Vehicle check-out
NOT
YES
Registration fees
NOT
YES
The answer to the question of whether renting a car is more advantageous is not always clear. But if you want to take care of work, family, business and relieve yourself of the administrative and manual tasks associated with buying a vehicle, carefree renting a new car is the right choice for you. 

Advantages of renting
Online ordering process
Vehicles available immediately
Vehicle without down payment of 20%
Also suitable for individuals
Termination of the lease at any time
All services included in one rent
Non - encumbrance on the balance sheet of a legal entity
Tax deductible expense up to 100% for a legal entity
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