The car rental industry is a big one, but it can be pretty confusing. For starters, there are two different ways you can rent a car. We’ll discuss both of these approaches – plus a lot more – in this guide to renting a car:
The two ways to rent a car
Effectively, you have long-term and short-term car rentals. Starting with short-term rentals, we’re talking about cases where you’d rent a car for a few days or weeks, possibly even months. You have companies like Ace Rent A Car that offer these types of rentals, and they’re usually chosen by people visiting a new country or place for a short period. As an example, you’ve travelled to a different country and want a means of transport for the duration of your trip. Or, you’ve gone on a business trip and need to have a car.
Long-term car rentals are more geared at people that want an alternative to buying a car. They’re usually referred to as car leases, and the idea is that you pay a set fee every month to lease a car for a specific period – normally a year or more. At the end of the lease, you can give the car back and rent a new one, or you can buy the car and keep it.
What are the benefits of short-term rentals?
Primarily, a short-term rental helps in situations where you need to get around. They can be extremely beneficial if you’re in a foreign country and don’t understand how the public transport system works. Or, you just want a more reliable way of getting from A to B during your trip.
Short-term car rentals also provide you with more freedom when you’re travelling. You don’t have to look for hotels close to train stations or bus stops, and you don’t have to only visit tourist attractions with good public transport links. Car rentals can also be way more affordable than paying for public transport or taxis, particularly if you have a group of people all travelling together.
What are the benefits of long-term rentals?
When leasing a car, you do benefit from getting to drive a brand new car all the time. You also get the advantage of being able to drive more cars throughout your life, as you can switch to a new one at the end of your contract.
Furthermore, leasing can be way more cost-effective. Buying a car from a car dealership will almost always result in a loss of money. Cars decrease in value right away, so there’s never really any point in owning one. Also, the monthly payments are easier to budget than paying outright for a car.
Hopefully, this guide has cleared up a few questions you might have about renting cars. Yes, there are two different options, so it’s important to ensure you’re looking at the right company when renting. The last thing you want is to enter a long-term contract when you’re only trying to rent a car for a few days!