Car renting vs buying-financial perspective

varghesejim

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

Nobbie1967

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

Buy a roofbox or trailer? Costs a fraction of your above figures.

EssexExile

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.

varghesejim

forgotmyname wrote: »

Buy a roofbox or trailer? Costs a fraction of your above figures.

In certain situations yes. But the comfort of a large car is a factor in long trips

varghesejim

EssexExile wrote: »

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.

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

I think you're over estimating the cost of a Tiguan there by about 100%

forgotmyname

varghesejim wrote: »

In certain situations yes. But the comfort of a large car is a factor in long trips

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.

varghesejim

thescouselander wrote: »

I think you're over estimating the cost of a Tiguan there by about 100%

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

forgotmyname wrote: »

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.

That golf must have some issues. The effect is more in the back seat.

fiisch

varghesejim wrote: »

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

There are lease deals on the Tiguan for significantly less than you're describing - Tiguan leases start around £220 / month with 9 month deposit....