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  • FIRST POST
    • varghesejim
    • By varghesejim 12th Sep 17, 7:10 PM
    • 125Posts
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    varghesejim
    Car renting vs buying-financial perspective
    • #1
    • 12th Sep 17, 7:10 PM
    Car renting vs buying-financial perspective 12th Sep 17 at 7:10 PM
    We already have a small car and thinking of buying a bigger one for long trips, more luggage etc. I am wondering is there any financial sense in buying a second bigger car for family against renting

    For an SUV like tiguan monthly PCP payment in 420 pounds with 1000 pounds deposit.

    So for the first year cost is 1000+5000 +250(service) + 100(tax)=6350
    Corresponding years 5350

    Renting a SUV/MPV is around 250-300 per whole week or 80 pounds max per day

    Assuming 3 whole weeks family trips(750 pounds). Then if we have to take the car for some odd days-20 days*80 = 1600

    So renting is 2350

    Added advantage with renting is we could just rent whichever vehicle we want. For example we might need a 9 seater for a trip with grand parents, a luxury car to show off etc. Still the price wont reach 5350

    Why do anyone need to buy a car? Especially a second car? Have a cheap small car and rent other cars according to need?

    We have to exclude desire to own a car from the equation
Page 1
    • Nobbie1967
    • By Nobbie1967 12th Sep 17, 7:21 PM
    • 633 Posts
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    Nobbie1967
    • #2
    • 12th Sep 17, 7:21 PM
    • #2
    • 12th Sep 17, 7:21 PM
    If both parents commute by car then it makes sense for one of the cars to be the family wagon and the other just for commuting. Many couples do different things and each want transport that is flexible. If you don't, great, you seem to have made a sensible financial decision.
    • forgotmyname
    • By forgotmyname 12th Sep 17, 8:03 PM
    • 25,688 Posts
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    forgotmyname
    • #3
    • 12th Sep 17, 8:03 PM
    • #3
    • 12th Sep 17, 8:03 PM
    Buy a roofbox or trailer? Costs a fraction of your above figures.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • EssexExile
    • By EssexExile 12th Sep 17, 8:37 PM
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    EssexExile
    • #4
    • 12th Sep 17, 8:37 PM
    • #4
    • 12th Sep 17, 8:37 PM
    Planning is the only problem I can see. I can just jump in the bigger car & take whoever I want wherever i want. As opposed to deciding in advance what I need to do then phoning around the local car hire companies to see if they've got anything suitable.
    Tall, dark & handsome. Well two out of three ain't bad.
    • varghesejim
    • By varghesejim 12th Sep 17, 9:27 PM
    • 125 Posts
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    varghesejim
    • #5
    • 12th Sep 17, 9:27 PM
    • #5
    • 12th Sep 17, 9:27 PM
    Buy a roofbox or trailer? Costs a fraction of your above figures.
    Originally posted by forgotmyname
    In certain situations yes. But the comfort of a large car is a factor in long trips
    • varghesejim
    • By varghesejim 12th Sep 17, 9:29 PM
    • 125 Posts
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    varghesejim
    • #6
    • 12th Sep 17, 9:29 PM
    • #6
    • 12th Sep 17, 9:29 PM
    Planning is the only problem I can see. I can just jump in the bigger car & take whoever I want wherever i want. As opposed to deciding in advance what I need to do then phoning around the local car hire companies to see if they've got anything suitable.
    Originally posted by EssexExile
    Good point. In my case I have one in 10 mins walking distance and they are a big chain, so availability is usually not an issue. Planning - yes
    • thescouselander
    • By thescouselander 12th Sep 17, 9:47 PM
    • 5,209 Posts
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    thescouselander
    • #7
    • 12th Sep 17, 9:47 PM
    • #7
    • 12th Sep 17, 9:47 PM
    I think you're over estimating the cost of a Tiguan there by about 100%
    • forgotmyname
    • By forgotmyname 12th Sep 17, 10:04 PM
    • 25,688 Posts
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    forgotmyname
    • #8
    • 12th Sep 17, 10:04 PM
    • #8
    • 12th Sep 17, 10:04 PM
    In certain situations yes. But the comfort of a large car is a factor in long trips
    Originally posted by varghesejim

    Not really, little ones got a KA and the seats are excellent for a blast up the motorway. I would have no issues driving for several hours where my mums Golf is so uncomfortable that within 20 minutes i have twinges in my back.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • varghesejim
    • By varghesejim 12th Sep 17, 10:46 PM
    • 125 Posts
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    varghesejim
    • #9
    • 12th Sep 17, 10:46 PM
    • #9
    • 12th Sep 17, 10:46 PM
    I think you're over estimating the cost of a Tiguan there by about 100%
    Originally posted by thescouselander

    Prices are for new cars, for used car prices will be cheaper.

    keep in mind rental cars are usually less than 2 years old(enterprise rent a car is less than a year mostly). Assuming buying a two year old tiguan prices will still be greater than rental
    • varghesejim
    • By varghesejim 12th Sep 17, 10:50 PM
    • 125 Posts
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    varghesejim
    Not really, little ones got a KA and the seats are excellent for a blast up the motorway. I would have no issues driving for several hours where my mums Golf is so uncomfortable that within 20 minutes i have twinges in my back.
    Originally posted by forgotmyname
    That golf must have some issues. The effect is more in the back seat.
    • fiisch
    • By fiisch 12th Sep 17, 11:10 PM
    • 164 Posts
    • 62 Thanks
    fiisch
    Prices are for new cars, for used car prices will be cheaper.

    keep in mind rental cars are usually less than 2 years old(enterprise rent a car is less than a year mostly). Assuming buying a two year old tiguan prices will still be greater than rental
    Originally posted by varghesejim

    There are lease deals on the Tiguan for significantly less than you're describing - Tiguan leases start around £220 / month with 9 month deposit....
    • varghesejim
    • By varghesejim 12th Sep 17, 11:17 PM
    • 125 Posts
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    varghesejim
    There are lease deals on the Tiguan for significantly less than you're describing - Tiguan leases start around £220 / month with 9 month deposit....
    Originally posted by fiisch
    In that case the first year cost is 220*12 + 220*9 + 300(service + car tax) + 500(insurance)

    Comes around 5500

    I believe this option is for the cheapest tiguan? Compare this with the option of having a variety of cars according to your needs rented.
    Last edited by varghesejim; 12-09-2017 at 11:20 PM.
    • forgotmyname
    • By forgotmyname 13th Sep 17, 1:36 AM
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    forgotmyname
    That golf must have some issues. The effect is more in the back seat.
    Originally posted by varghesejim
    Must have issues? like what? Low mileage mint condition.

    Its just that the seats to me are uncomfortable. Everyone is different. Worst car i have ever driven for comfort is a Capri, yet my insurance broker back then used to commute almost 80 miles a day to the office in one. He loved it.

    Just because a car is small does't mean its not comfortable on a long journey though.

    Seems like you want something rather than need. No issues with that but why not be honest with yourself and say I do not need it but i want it.

    I have lots of things that i wanted rather than all out needed.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • varghesejim
    • By varghesejim 13th Sep 17, 6:57 AM
    • 125 Posts
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    varghesejim
    Everyone is different.
    Originally posted by forgotmyname
    Fair point. It's just that the newer golf is known to be very comfortable. Then, there are people who find their bicycles more comfortable than their cars.

    A badly designed large car could be worse than a better designed small car which is a different discussion. I am all for saving money, but there is no point denying certain facts just because we cannot ( or won't) afford more expensive things. Generally larger and more expensive cars are more comfortable( or drive better according design)
    • onomatopoeia99
    • By onomatopoeia99 13th Sep 17, 9:03 AM
    • 3,337 Posts
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    onomatopoeia99
    For example we might need a 9 seater for a trip with grand parents, a luxury car to show off etc.
    Originally posted by varghesejim
    When does anyone need a luxury car to show off? I'm intrigued.
    INTP, nerd, libertarian and scifi geek.
    Home is where my books are.
    • caprikid1
    • By caprikid1 13th Sep 17, 9:22 AM
    • 458 Posts
    • 473 Thanks
    caprikid1
    "Worst car i have ever driven for comfort is a Capri"


    I think it's safe to say that with all cars including the capri the difference between seats and individuals is enourmous. I suspect the Capri must have had over 30 different interiors in its existence from padded deep vinyl to sports recaro's. My dad with a knackered back always found the Capri fine.


    I should add the leather Recaro's in my Golf are fine for a 500 miles without significant stops. Ultimately its what we all find comfortable.
    • thescouselander
    • By thescouselander 13th Sep 17, 8:03 PM
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    thescouselander
    In that case the first year cost is 220*12 + 220*9 + 300(service + car tax) + 500(insurance)

    Comes around 5500

    I believe this option is for the cheapest tiguan? Compare this with the option of having a variety of cars according to your needs rented.
    Originally posted by varghesejim
    Actually I've found deals cheaper than that: - for example £205 per month with 9 months up front.

    Also I dont think the insurance would be that high (£300 for the year perhaps) and the lease company would pick up the tax. I doubt a service would be required either as it would probably be on the extended service interval. So overall I reckon its going to come to around £4600 for the first year and about £2800 for the next year or two depending on the deal.

    https://www.contracthireandleasing.com/main-dealers/breeze-volkswagen-poole/volkswagen/tiguan/227841075/

    I dont know how many short term hire cars that would get but I suspect not many.
    • varghesejim
    • By varghesejim 13th Sep 17, 10:20 PM
    • 125 Posts
    • 49 Thanks
    varghesejim
    Actually I've found deals cheaper than that: - for example £205 per month with 9 months up front.

    Also I dont think the insurance would be that high (£300 for the year perhaps) and the lease company would pick up the tax. I doubt a service would be required either as it would probably be on the extended service interval. So overall I reckon its going to come to around £4600 for the first year and about £2800 for the next year or two depending on the deal.

    https://www.contracthireandleasing.com/main-dealers/breeze-volkswagen-poole/volkswagen/tiguan/227841075/

    I dont know how many short term hire cars that would get but I suspect not many.
    Originally posted by thescouselander

    Yes, it is almost close except the increased cost for the first year. I have to rethink if the flexibility of the short term rental is worth it
    • varghesejim
    • By varghesejim 13th Sep 17, 10:47 PM
    • 125 Posts
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    varghesejim
    Yes, it is almost close except the increased cost for the first year. I have to rethink if the flexibility of the short term rental is worth it
    Originally posted by varghesejim
    And dont forget you can still afford 28 days of short term car rental at 100/day even if you consider the second year costs. If you already own a car I will argue 28 days year is more than enough for your "other car needs".

    You can any car in the rental company forecourt for this 28 days, be it a MPV, SUV or Van.

    In short, even at attractive monthly payments renting is financially better to long term/lease/pcp/owning outright
    • BeenThroughItAll
    • By BeenThroughItAll 13th Sep 17, 10:56 PM
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    BeenThroughItAll
    And dont forget you can still afford 28 days of short term car rental at 100/day even if you consider the second year costs. If you already own a car I will argue 28 days year is more than enough for your "other car needs".

    You can any car in the rental company forecourt for this 28 days, be it a MPV, SUV or Van.

    In short, even at attractive monthly payments renting is financially better to long term/lease/pcp/owning outright
    Originally posted by varghesejim
    It's not better than owning outright, as renting doesn't give you an asset you can resell.
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