What is Car Rental?

What to rent a car? Many do not know about car rental. Here are some things you should know before deciding to rent a car. Owning a new car has a great risk of monthly maintenance costs. That’s nothing new, but you still have other options, and one of them is to rent a car. The next question is whether to rent a car? Is this better than buying a car? The information is the following.

What is car rental?

Car rental is widely known as car financing, which provides “rental” cars (new car dealerships) to rent for certain times and miles. When you rent a car, you will usually be charged a monthly rental rate for the car. In exchange, the dealer will allow you to drive the car whenever you pay. When the lease contract ends, you will return the car to the dealership or buy a car if you wish to keep it, if there is an option for it. However, to rent a new car, you must have good credit. The average credit level is at least 724. FICO, a California-based data analysis company, says a credit level of more than 700 is “good” enough to rent a car. Keep in mind that even if you don’t have a car that you rent, your lease payment record will be shown on your credit report.

Lease a car versus buy one

Even if many financial experts do not recommend that you rent a car, there are still some benefits to renting a car, compared to buying. Include:

Lower monthly rental rates. Buying a new car is usually more expensive than renting it; You must first save or at least get a credit card to pay for it. When you rent a car, you no longer have to bother paying down payments or sales tax. Car maintenance costs are also relatively lower than owning a car, although there will be additional costs for some of the damage caused to the rented car. Carsstudios.com.

Enjoy the quality of a new car. Renting a car means enjoying a new car every time a new lease begins for several years or more. You will definitely feel pampered with technology, models and better safety and comfort items.

Loan approval is not required. Compared to a car loan, car rental does not require loan approval. You should not worry about refusing to “rent” a car because car rental companies generally offer more flexibility. If you violate the lease rules in the contract, they will only recover your rented car.

There is no commitment that forces you. When your lease contract ends, you can return the car you have rented, or choose another vehicle to rent again, or just stop completely. You can also choose to buy a rental car if you feel it is worth keeping. It all depends on your negotiation with the car rental company first.

Last but not least, after knowing what to rent a car, you will know the difference with buying a car. The most important thing now is to consider living a wiser lifestyle before deciding to rent or buy a new car.