Revvlog

Traditionally, owning a car in India is regarded as a symbol of prosperity and status. It is considered a way to live independently and conveniently. However, in today’s time, is owning a car really a sign of affluence, especially when renting a car is becoming an intelligent move owing to the technological and economic benefits attached? Car rentals are changing the way we travel in modern times, providing everything from savings to ultimate convenience. Moreover, with increasing costs, traffic congestion, and changing lifestyles, many people are starting to think about renting or subscribing to a car instead of buying one.

So, what makes more sense for you – buying or renting a car? In this blog, we explore some compelling reasons for renting versus buying a car to determine which one is a better option.

Why is Car Rental Becoming a Better Option in India than Buying a Car?

The option of renting app-based cabs has become so convenient that many have started wondering if buying a car is really worthwhile. Both options have their advantages and disadvantages, and many times it becomes a dilemma for people to make a choice. 

To help with this decision, let’s think about a simple comparison with variables like cost, convenience, and other factors to decide whether buying or renting a car is feasible as per your budget and convenience:

Factor	Buying a Car	Renting a Car
Initial Cost	High (down payment/loan/full payment)	None
Maintenance	Regular expenses (service, repairs, insurance) are required	Not your responsibility (covered by the car rental company)
Long-Term Cost	It can be cheaper if you drive daily	It can be costlier for regular long commutes
Fuel Expense	You have to pay as per usage	Generally included in the fare. In the case of self-drive car rentals, companies offer different fuel plans to choose from.
Flexibility	Car owners are stuck with one car until they upgrade or replace it.	You can choose different vehicles according to your needs – sedan, SUV, luxury, and more.
Parking Issues	It can be a hassle for people living in narrow lanes or apartments with limited parking.	No parking hassles.
Cost-effective	Even if rarely used, a car still costs for EMI, insurance, and upkeep.	You pay only when you actually travel or go on trips.
Occasional Travel	Not economical if rarely used	Perfect for occasional or short trips

Renting a Car vs. Owning One – Which Is More Cost-Effective and Convenient?

Renting a car for your travel adventures is a better choice than buying a car because of several benefits, including tangible and intangible ones. When you buy a car, it depreciates at 40% during the first year and 60% during the third year of ownership, which is one huge reason to rent a car rather than buy one. Here are some other reasons why renting a car vs buying is better:

• Explore Different Cars as per Occasion: You have a variety of options with car rental to choose from. Owning a car means you are stuck with it unless you upgrade or replace it. But if you rent one, you have the option to select a vehicle of your choice whenever going out on a road adventure. You can hire SUVs for off-road adventure trips, or hire a premium sedan or BMW for an official meeting, and so on.

• Value for Money: Having your car may afford you convenience and a sense of ownership, but it requires significant financial investment in down payments, EMIs with interest, fuel, servicing, insurance, and miscellaneous charges. All of these costs add up quickly, even if you don’t use the car often. Renting a car, on the other hand, eliminates all these worries as you pay the booking amount and drive. You don’t have to worry about maintenance charges.

• Ease of Movement: When you travel to new destinations or on rough terrain, your car can take a beating, putting strain on the engine, risking performance failure, or leading to a mechanical breakdown on the highway. With rental cars, you don’t have to think about that. If anything goes wrong, rental companies typically have roadside assistance to help you.

Situations Where Renting vs Owning A Car Makes Sense

Renting or using cabs is a smart option if you don’t travel daily or want flexibility without the long-term financial burden. For people traveling occasionally or those living in a city with convenient car rental facilities, using rental cars can save you money and effort. This is one of the reasons why more and more city dwellers are opting for rental options for driving rather than buying a car. 

If you expect to drive approximately 1,000 km or more per month, it makes economic sense for you to own a car. At this distance, fixed costs such as EMIs, maintenance, and insurance start to spread over the yearly distance more effectively. 

Who Should Rent a Car?

Here are some factors that make renting versus buying a car better for some people, such as

• City Dwellers: People living in cities with well-established public transport systems, renting a car for occasional use is more practical than owning one and strugling with parking issues, along with hefty ownership costs.
• Casual Drivers: If you drive merely a few times a month instead of maintaining a car year-round, car rentals are much cheaper.
• Frequent Flyers: Renting is great for someone who travels regularly for work or leisure.
• Budget Conscious Individuals: If you are trying to save money, car rentals provide access to quality vehicles without a financial burden.

Who Should Own a Car

Overall, owning cars makes sense if:

• You travel to several unpredictable locations in a day.
• You live far from major business centers or in a remote area.
• You have a job that requires you to travel to multiple locations and typically involves roaming or following an undefined path.
• You are a working woman, and safety and privacy are important to you.
• You expect to drive the car for the next 5 to 10 years.

How is the Car Subscription Option Changing Perspectives?

Subscription models for cars are changing how Indians think about mobility. Users now prefer flexible options that allow them to drive a vehicle of their choice without thinking about maintenance, insurance, or resale value. Moreover, they also don’t have to worry about long-term EMIs and ownership obligations. 

Car subscriptions offer monthly subscription options, the ability to upgrade or switch cars easily, and no down payment barriers. This increasingly appeals to millennials, professionals in metropolitan areas, and those with changing jobs. This represents a gradual migration away from ownership toward access to mobility, and increasingly makes cars a service rather than a lifetime asset.

To Conclude

Renting a car is much better than owning one. It saves money, offers flexibility, and eliminates stress related to maintenance or depreciation of vehicles. Renting is convenient whether it’s for vacation, work, or trying out new cars. With car rental services like Revv, renting vehicles for long or short durations makes sense as it eases your commute and is the best option for your next trip!

If you live in a metro city and don’t drive daily, and at the same time, you value flexibility over owning a vehicle, renting a car will suit you best. Revv offers a vast fleet of vehicles to choose from at economical prices. We also have a car subscription option for long-term rentals. Visit the official portal to learn more.