Should I Rent a Car or Lease it?

by Novus AutoGlass Novus Auto Glass

There are varying factors that determine if you should rent or lease a car. The biggest determining factor is the amount of time you intend to hold onto the car. If you are intending on having a car for a couple of years, leasing is a more beneficial option, however, if you are intending on keeping the car for a shorter period of time than renting is better. Here is a breakdown to help you weigh in your options.

When to Lease

Leasing a car is generally done when you are intending on holding onto the car for over a year. Leasing a car can prove to be very beneficial if you do not intend on having a permanent car. This is because, when you lease a car, payments are not calculated based on the current retail price of the car, but rather, the amount the car will be valued at by the end of the lease. For example, if you are leasing a car for 3 years with an initial retail price of $40,000, with a projected depreciation to $30,000 by the time your lease ends, the payments you make will be calculated based on the depreciated value rather than the original cost. Leasing a car is the perfect option for those who do not want to commit to buying a car. Buying a car, like buying a house, is an investment. Not to mention, if you are going to be making part payments over time for a car, leasing it means you can lease the next newer and better model. Whereas buying a car would include the hassle of selling it by yourself once it’s past your ‘use by’ date. Leasing a car frees you from the obligation of having to sell your car if you were to move or were looking to buy a newer model.

When to Rent

Renting a car is more beneficial for short-term needs. Car rentals are popular among travellers and tourists, allowing them to travel around unrestricted for the duration of their stay. If you live in a busy city such as Brisbane or Melbourne, the convenient chain of transport networks probably stopped you from buying a car for daily use. That’s not to say you don't need to drive places every now and then. Whether it’s a big date night or an important client meeting a half-hour drive away, a car can really come in handy on some days over others. If you are not a regular driver, buying a car could mean having to spend unnecessary costs for its upkeep and maintenance such as car insurance fees or parking costs. Excluding the inevitable depreciation, your car is bound to face over time, decreasing its worth.

Novus Autoglass is a global leading brand in windscreen repairs and replacements with over 40 years of exceptional service. Whether you are holding onto your own car, rental or leased, we can help fix any glass damages and make sure the insurance process is as smooth as can be. Contact us today and find out how we can help!