Millions of people use their car daily for the likes of work commutes and family outings. Therefore, for many of us, it’s a foregone conclusion that we need a car; what’s not always so clear is whether we should own it, hire it or even just borrow it from a friend or relative.
However, whereas various awkward and complex conditions can be attached to hiring or borrowing a car, buying one can be a much simpler affair – for reasons such as these…
You could take out a loan to purchase your car
Of course, as per the terms of the loan, you would need to make monthly repayments once you’ve got the car. Monthly outgoings would apply when leasing a car, too – but buying a car with a loan usually still makes more financial sense in the long run.
As Investopedia warns, once the lease has expired, you would have to shell out further to keep a car – and “leases tend to come with higher finance charges and upfront costs” than loans.
Owning a car can give you more flexibility
For a start, consider the mileage limits – often 12,000 or 15,000 miles per year – that apply with leases. These limits can easily prove troublesome – as, according to at least one statistic, the average yearly mileage for a driver is 15,000 miles.
Leasing would also require you to keep the car for as long as the contract lasts – at least if you don’t want to risk getting charged for returning the vehicle ahead of schedule.
You have more freedom to customise a car you own
There are various ways you can tailor a car to your liking. For example, you could add a new sound system or unique hubcaps, if either option would be your thing. However, when you lease or borrow a car, it wouldn’t be entirely yours to customise.
Hence, you could be asked to reverse any changes you have made – and, if making those has inflicted damage to the car, you might have to foot the bill for repair work.
You don’t have to worry about keeping your side of the deal
When hiring a car, you would have to heed every detail in the hire contract if you want to try your best to avoid disgruntling the company you signed the contract with.
Borrowing a car from someone you know would also probably come with its own terms and conditions, albeit of a more informal kind. However, when you own a car, perhaps because you have bought it or instead won it in one of many car competitions online, you don’t have to think so much about what you owe to other people.
You could choose a Personal Contract Purchase (PCP) plan
This would require you to pay an initial deposit and then, for an agreed term, monthly repayments. During this term, you can use the car as you like – and, as the contract expires, you can make one final payment to obtain the car permanently, as the Express explains.