Renting a Car vs Buying a Second-Hand Car
In India buying a car has become a necessity than a luxury, with Covid still around, people prefer a safe way to commute than depend on public transportation. According to many reports since the beginning of the pandemic, the patronage for public transportation has gone down.
One of the trickiest questions during this period is whether to rent a car or to buy a second-hand one. Let’s look at both scenarios depending on the KMS you would need to commute in a month.
What is the cost of renting a car for a day covering 200 km?
As you can see from the above table, one needs to spend an average of Rs 3400 for a trip of 200 km, most rent a car service center does charge at least Rs 5 per km for any trip exceeding 120 km. Now let’s look at the cost of buying a second-hand car worth Rs 5,00,000/-
What is the cost of buying a second-hand car worth Rs 5,00,000/-?
As you can see from the above table, the cost for a day comes down to 2045 when compared to renting a car for Rs 3400 including fuel cost, owning a car also means you have access to the car at all times and it also avoids the travel cost and time to fetch the car from the rental service center.
Verdict
If you use a car for more than 10 days it makes sense to buy a car
Rent a for day = Rs 2000/
Rent for 10 days = Rs 20,000/-
EMI for a month = Rs 17,000/-
Insurance and Maintenance cost of owning a car for a month= Rs 2000/-
Total Cost = Rs 19,000/-
Savings = Rs 1000/-
If your use is less than 10 days, renting a car works best for you.