Long Term Car Rental

mark2004uk

Just having a think of getting a car, but then I thought about Long Term Rental, I know the company then pay for all repairs, serice, mot and road tax, just trying to figure out if that will be better in the long run, i found a nice one for about £239 per 28days including their incurance

missile

An option to have fixed running costs, check the small print carefully.

LincolnshireYokel

Some have a mileage limit, usually around 8000 miles per year, and if you go over it starts to get expensive.

Its never going to be cheaper renting someone elses car though. Its not like new cars are any more reliable than old ones.

When i buy I car, i reckon on getting 3 years out of it. so the maths goes:

3 Years costs:
Car £1000
Tax £600
MOT; £300
Insurance; £450
20,000 miles fuel = 400 gallons
400 gallons x 4.54 x £1.30 = £6000 approx
misc repairs/tyres, AA membership etc £500

Total: £8,850 /20000 = 44p a mile all in + at the end You have a £500 asset to sell



£239 per 28 days for 3 year = £9650
Fuel 20,000 miles say £5000
Total £14650 /20,000 = 73p a mile all in, nothing to recover back



Wouldn't work for me, as you can see.

At £239 a month you would be better buying one on credit, the nat least you'll have an asset to sell at the end of the day worth maybe £3000 - £4000, and if you factor that into the above equation, the gap between the two drops dramatically.

RDG

LincolnshireYokel wrote: »

20,000 miles fuel = 400 gallons
400 gallons x 4.54 x £1.30 = £6000 approx
misc repairs/tyres, AA membership etc £500

Total: £8,850 /20000 = 44p a mile all in + at the end You have a £500 asset to sell



£239 per 28 days for 3 year = £9650
Fuel 20,000 miles say £5000
Total £14650 /20,000 = 73p a mile all in, nothing to recover back
.

Yokel your fuel costs dont work for me

400*4.54*1.3 = £2360 approx not £6000

20000/400 = 50mpg which is pretty generous
Say a £1000 car can acheiev 25mpg for comparison sake and a new car 45mpg

Then the relative cost would be
old 20000/25 = 800*4.54*1.3=4722

new 20000/45 = 444*4.54*1.3=2620

Total costs (for arguements sake lets assume your other figures are about there)
old = £7572 = 38p per mile
new = £12270 = 61p per mile