Car Hire: The Financial Aspects
Not everyone considers it, but there are plenty of benefits to hiring a car. From a purely financial point of view, one can certainly make the argument that it may be cheaper than actually owning a car. Too assess this; however, you need to look at various relating factors.
So, whether its assessing your car hire insurance options, the amount of times you hire a car or understanding how cheap hiring a car is over owning one, there are various factors that should always be considered.
The amount of times you hire a car will undoubtedly be important. Since each time comes with its own costs, like insurance, this can build up over the year if you’re frequently hiring cars. Likewise, the length of time you hire the car for it is also an influencing factor; it’s obviously more expensive to hire a car for a month that it is for a week. This should be taken into heavy consideration when looking at how prolific you are at hiring vehicles.
Furthermore, the frequency of which you hire a car may also effect whether or not it’s worth owning a car. This will be discussed later, but it’s always something to bear in mind.
Hired cars need insurance like typical vehicles. Since they’re hired, the insurance options are usually different. Depending on you as a driver and the car, the insurance can be expensive, but it’s generally quite low due to the limited time frame in which you’re driving or granted access to the vehicle to begin with.
The company that rents you the car might offer you their own insurance, but you’re not obliged to take this. It may seem cheap, but a quick look at other car hire insurance options should show you that it’s just as cheap elsewhere. Like all insurance policies, looking at your options before hand usually pays off.
Owning a Vehicle
Of course, once insurance options have been discussed, you should also look at whether or not its cheaper than owning a vehicle.
Owning your own vehicle can be expensive, with insurance options and other running costs. Yet if you find yourself renting numerous cars throughout the year, it might be worth looking into, as it will save you costs and planning all the time.
On the other hand, if you only a hire vehicle on rare occasions, you might not drive enough to warrant owning a car. This will only end up sitting on your drive, yet you’ll still be charged insurance, taxes and other fees for it. This is a simple case of doing the math and figuring out which option is cheaper; hiring a car or owning one all year round.
In short, if you assess the previous factors, such as the costs and your actual driving needs, you may find that hiring a car is generally cheaper. It’s also not a guaranteed expense; if you don’t need a car on a certain week; you’re not obliged to hire it. Understanding these concepts is crucial if you’re debating whether or not to go down this route, but there are clear advantages