Positive and Negative Aspects of Utilizing Long-Term Vehicle Rentals

Traditionally, young drivers would save up for months (or sometimes years) until they could purchase their first vehicle. Although many drivers still do this, it is no longer the only route. Lots of modern drivers utilize a method called long-term renting (also referred to as leasing). There are a ton of benefits that come along with long-term vehicle rentals. An example of one of these advantages is lower monthly payments.

However, before drivers start looking for a new Honda Civic lease in the Los Angeles, CA area, they need to take a step back from the situation. By doing this, drivers can also see that there are some downsides to utilizing long-term rentals. Knowing both the pros and cons of long-term rentals can help drivers make a smart and sophisticated choice.

Positive Aspects of Long-Term Vehicle Rentals

Positive Aspect #1 – Less Commitment to a Single Model 

People like to say that the grass is always greener on the other side. This is a saying that people use when they feel that something they don’t have is better than what they currently have.

This saying can be applied to a number of situations, especially driving. Many drivers will often want a model that is fresh and modern, even if they recently purchased a vehicle.

Thankfully, drivers that utilize long-term rentals don’t have to commit to a single vehicle. Many dealerships will lease vehicles for as little as six months. This means that drivers can switch up their vehicle twice a year! By doing this, drivers can always have a fresh set of wheels on the road.

Positive Aspect #2 – Low Credit Isn’t an Issue

For a person to purchase a Honda HRV from a dealership in Los Angeles, CA, they need to have a respectable credit rating. If the driver has no credit, they won’t be able to get a vehicle at all.

Some dealerships will sell a vehicle to customers with low credit, however, this will have a serious impact on the driver’s interest rate. Purchasing a vehicle with low credit can lead to a number of additional financial issues.

Instead of buying a model outright, drivers that have bad credit will often utilize long-term renting. Drivers can generally pay a 10% to 20% down payment, along with a handful of security fees. This is a convenient and cost-effective alternative to purchasing a vehicle.

Positive Aspect #3 – Forget About Maintenance 

After purchasing a vehicle, the driver is responsible for paying for any maintenance tasks. These include fixing scratches, taking care of tune-ups, and replacing the oil. Drivers can do this themselves or pay a professional to do it for them. Either way, drivers that purchase their vehicles have to spend either time or money on up-keep.

Thankfully, this isn’t the case with long-term rentals. A majority of dealerships will offer thorough warranties for all of their models. These warranties are often referred to as “bumper-to-bumper” plans. This type of warranty covers every aspect of the vehicle. If something happens to break down or stop working, drivers can drop the vehicle off at the dealership. When they return, the vehicle will be as good as new and the driver won’t have to pay a cent.

Positive Aspect #4 – Don’t Worry About Value Depreciation

 It is common knowledge that fresh vehicles lose an enormous amount of value as soon as they are driven off of the lot. Some models lose as much as 50% of their value within the first year. This means that when the driver goes to sell the vehicle, they won’t be able to get a solid return on their investment.

However, drivers that utilize long-term rentals never have to worry about depreciation. This is because they don’t actually own the vehicle. As far as the driver is concerned, it doesn’t matter if the vehicle is worth $10,000 or $100,000.

Negative Aspects of Long-Term Vehicle Rentals

Negative Aspect #1 – Extra Fees

 Long-term vehicles rentals are an undeniably affordable alternative to purchasing a vehicle. However, if drivers don’t pay attention, they can potentially stumble upon a number of extra fees. Some examples of these fees include:

#1 – Extra Mileage Fees

Before a long-term vehicle rental, drivers agree to a number of stipulations. One of these contingencies is that drivers stay within a set amount of miles. Drivers that break this limit have to pay what are known as extra mileage fees. Many dealerships will charge anywhere from $0.15 to $0.20 per mile over the limit. It is also worth noting that many luxury dealerships will charge $.30 or more per mile. This means that drivers need to keep an eye on the odometer while driving a long-term rental vehicle.

#2 – Wear and Tear Fees

As mentioned earlier, long-term rental vehicles often come with “bumper-to-bumper warranties.” This means that all of the general maintenance fees are covered by the dealership. However, if the driver is too aggressive with the vehicle, they may have to pay some wear and tear fees. It isn’t uncommon for drivers in accumulate up to $1,800 in wear and tear expenses.

#3 – Early Termination Fees

If a driver ends an agreement before the set date, they will most likely have to cover some early termination fees. These expenses can range from approximately $200 to $500. This is an unnecessary expense that most drivers would rather not deal with. With this in mind, it is easy to see why drivers should stick with their long-term rental vehicles until the agreed date.

Positive Aspect #2 – The Driver Never Truly “Owns” the Vehicle

After purchasing a vehicle, drivers can proudly say that they “own” it. However, this isn’t the reality for long-term rental drivers. Even though the driver is making monthly payments, at the end of the day, the vehicle is still owned by the dealership. This is a factor that makes some people think twice about long-term vehicle rentals.

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