Have you ever wondered whether buying or renting a car is a better option for you? Depending on your budget and needs, you may find it useful to choose between short-term car rental, long-term rental or leasing. In this article, we compare car buying and different car rental options to help you make the right decision!
Comparison table: buying a car vs. short term rent vs. long term rent vs. lease
| Article from | Buying a car | Short-term rental | Long-term rental | Leasing |
|---|---|---|---|---|
| Provisional cost | Down payment or the full price of the car. For example, €20 000 for a new car. | There is no initial payment; it is paid for the rental period. | Possibility of advance payment or deposit; monthly payments. | A deposit is usually required; monthly payments. |
| Monthly payments | Lease payment or loan payment, depending on the type of financing. | Rental fee according to the time used (hours/days). | Fixed monthly payment, which may include maintenance and insurance. | Fixed monthly instalment; maintenance and insurance costs are added separately. |
| Maintenance and repair | At owner’s expense; costs vary depending on age and condition of vehicle. | Included in the rental price. | Often included in the monthly charge. | At the user’s expense; costs are added to the monthly payment. |
| Insurance | To be borne by the owner; motor and comprehensive insurance required. | Usually included in the rental price. | Usually included in the monthly rent. | At the user’s expense; costs are added to the monthly payment. |
| Impairment | At the owner’s expense; the value of a new car will drop significantly in the first year. | Does not affect the lessee. | No impact on the lessee. | No impact on the user; the leasing company owns the car until the end of the contract. |
| Access restrictions | None. | May apply depending on the service provider. | Usually imposed; surcharges if exceeded. | Established; surcharges if exceeded. |
| Contract flexibility | Low; selling or exchanging a car can be time-consuming. | High; suitable for short-term needs. | Moderate; contracts usually last 6-12 months. | Low; contracts typically last 3-5 years. |
Buying or renting a car? Which is the best choice?
Advantages and disadvantages of buying a car
Pros:
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Own car, own rules.
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No rental conditions or restrictions apply.
Cons:
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High upfront costs and ongoing maintenance costs.
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The value of a car is falling fast.
Advantages and disadvantages of short-term car rental
Pros:
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Flexibility – the car is available as you need it.
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Maintenance and insurance are included in the rental price.
Read also our article Ergorent or Bolt Drive – Which car hire to choose?
Cons:
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For a longer period, it may be more expensive than long-term renting or leasing.
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A suitable car may not always be available.
Advantages and disadvantages of long-term car rental
Pros:
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Often includes maintenance and insurance.
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You don’t have to worry about selling your car or losing value.
Cons:
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A financial commitment agreed over time.
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The car does not belong to you after the end of the rental period.
Car leasing vs long-term rental – what’s the difference?
Liising:
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Suitable for those who want to buy the car out later.
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Monthly payments, but maintenance costs are added separately.
The leasing conditions vary between providers. LHV, for example, offers flexible leasing conditions, which you can read more about on their website.
Long-term rental:
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There is no ownership, but all services and insurance are included.
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Suitable for those who don’t want to own a car.
- Freedom from long-term commitment.
How to choose the right solution?
You should take into account your budget, your needs and the length of time you will be using your car. If you need a car for everyday use but don’t want the maintenance costs, a long-term rental may be ideal. If you prefer to own a car and are prepared to invest, leasing or buying may be a better option.
✅Need a car for a short stay but for more than a few hours? Ergorent offers short term car rental. See the selection and book your vehicle today! Book here.
✅Need a car for a longer period but don’t want to buy or lease? Contact us to book a long term car rental. +372 515 5012 or write us ergo@ergorent.ee.