Car Hire vs Car Purchase on residual.

[just_dandy]

Hi Guys...

I have been frustrating myself with a car purchase decision for over a year now.

I just cant get over how expensive it is to own a decent car these days. An Suv is way out of my price range for my family of 4.

I only really need an SUV for road trips which i would probably only do in the summer months.. at most once a month. And we do 1 holiday trip a year to the garden route for a week.

So this weekend i decided to hire an IX 35.

It cost me R700 pd incl insurance. I paid a refundable fuel deposit of R1750 for this weekend's experiment. They allow 200km free per day. Which seems to be ample for this weekend so far. I will have to return the vehicle with a full tank

For some reason I feel more at ease to just hire as i need comparring to purchasing

Am I missing something ? Wise or Not.

Your comments please ?

PS my wife and i both have run around vehicles fully paid.

 

[ToxicBunny]

Cost...
plain and simple.

To hire an ix35 for every day of the month assuming a 30 day month, is going to cost R21000, whereas a no residual car purchase on the top of the range ix35 at a fairly bad interest rate is going to be around R11k per month.

Oh, and even if you're going to use it over the weekends only, you are limited to the 200kms, which you will find limiting sooner rather than later, plus if you have an accident in that hire vehicle, its going to hurt on the excesses you have to pay.

 

[falcon786]

If you already have run around vehicles fully paid then I don't see the need to go back into debt and overpay for a vehicle with interest....rather save up money and when you have enough to buy the car cash then you buy it otherwise you are just overpaying for an suv which isn't necessary...hire for now that once a year.

In fact if you really are only going to use an suv once a year then don't buy just rent.

 

[Sepeng]

I think it's a good idea. Too many people incur the expense of an SUV and use it's abilities once a year, if that. We like the idea of being able to go places, even if we never do.

 

[Freshy-ZN]

Seems like you have found your answer: For a once a year, few days road trip hire a vehicle.

 

[bwana]

Cost...
plain and simple.

To hire an ix35 for every day of the month assuming a 30 day month, is going to cost R21000, whereas a no residual car purchase on the top of the range ix35 at a fairly bad interest rate is going to be around R11k per month.

He only wants it for a few days a month… during the summer months.

They already own two daily runners.

 

[ToxicBunny]

He only wants it for a few days a month… during the summer months.

They already own two daily runners.

Yeah I got that...

Few days a month, it will still get massively expensive very quickly...

 

[Fazda]

Yeah I got that...

Few days a month, it will still get massively expensive very quickly...

^^^This - I agree.

One starts off by wanting it for a "couple" of days, but very soon, that turns into 10, and then 21, and so on, and you have just wasted all of your savings.

 

[Neo_X]

i made the same comparison regarding renting a trailer, and buying a 4x4 double cab to move around the weekly heaps of garden rubble and carting around all the house furniture around every few days.


ended up deciding that renting a trailer is cheaper. boggles my mind why so many fortuners is going around. We are really turning into an american mentality where we need to waste 50% of our salaries on the biggest cars we can find :/

 

[bwana]

^^^This - I agree.

One starts off by wanting it for a "couple" of days, but very soon, that turns into 10, and then 21, and so on, and you have just wasted all of your savings.

Obviously when it starts going beyond a couple of days a month it's worth revisiting the options but until then you're more likely to be wasting your savings if you buy.

 

[just_dandy]

Thanks to all for your input.

I take away that i must be absolutely sure about the frequency of hiring and more confident that i will never want to purchase an SUV in future.

I must say this experiment was a huge success for the family. Wife and kids were over the moon.

Pros :

We had the opportunity to spoil ourselves with a brand new car 2015 model all the bells and whistles

No heavy monthly premium

No heavy insurance premium

No maintenance obligations.. my main concern.

Next time i can choose a different car to drive.

Cons

Had to return the vehicle

Taking delivery and returning required a second driver.

Excess in case of damage or total loss was R5980.

Final thoughts

For some-one who would never be able to afford this sort of luxury permanently and wants to expierience the joy we had this weekend I would recommend hiring. Watch out for companies who ask huge deposits. I used Avis...my expierience was simple easy and no fuss whatsoever. Just be sure to book way in advance and take the tyre and windscreen cover which was included in my rate of 700pd

Thanks again to all

 

[Kosmik]

Why not a decent second hand Volvo cash or some such? Normally a lot cheaper due to bad re-sale value but if you are only going to use on the odd occasion, might be worth it.

 

[Colin62]

Taking delivery and returning required a second driver.

You should have left your car parked there till you got back. They might even have washed it for you

 

[ice_cubes]

You should have left your car parked there till you got back. They might even have washed it for you

heheh!

 

[just_dandy]

You should have left your car parked there till you got back. They might even have washed it for you

And hopefully a full tank too ... lol ? Unfortunately they couldnt even accomodate my motorcycle when i enquired.

 

[just_dandy]

Why not a decent second hand Volvo cash or some such? Normally a lot cheaper due to bad re-sale value but if you are only going to use on the odd occasion, might be worth it.

Thanks.. If i do seem to be sucked in by the SUV lifestyle then i will be sure to remember this

 

[news24]

Hi Guys...

I have been frustrating myself with a car purchase decision for over a year now.

I just cant get over how expensive it is to own a decent car these days. An Suv is way out of my price range for my family of 4.

I only really need an SUV for road trips which i would probably only do in the summer months.. at most once a month. And we do 1 holiday trip a year to the garden route for a week.

So this weekend i decided to hire an IX 35.

It cost me R700 pd incl insurance. I paid a refundable fuel deposit of R1750 for this weekend's experiment. They allow 200km free per day. Which seems to be ample for this weekend so far. I will have to return the vehicle with a full tank

For some reason I feel more at ease to just hire as i need comparring to purchasing

Am I missing something ? Wise or Not.

Your comments please ?

PS my wife and i both have run around vehicles fully paid.

I don't know how you'd do it, but if your able to fool the internet about your location, say USA for example. Through Expedia, Kayak, Priceline or rental company website you'll be able to reserve the vehicle with unlimited mileage usage, No 200km p/day cap.

Seems South Africans are always getting shafted. Every-time I return to SA I make a reservation before leaving USA and I always get unlimited miles p/day regardless of which car I pick.

 

[Rouxenator]

Maybe an angry (cross) Polo or Etios will do?

 

[Colin62]

And hopefully a full tank too ... lol ? Unfortunately they couldnt even accomodate my motorcycle when i enquired.

That's where you went wrong - by asking them. They'd never have noticed an extra car parked among all the others for the weekend.

 

[just_dandy]

That's where you went wrong - by asking them. They'd never have noticed an extra car parked among all the others for the weekend.

I wish that was the case. At the airport they pay rent per parking bay.