Sometimes it seems like everybody in Australia owns a car. Everyone certainly seems to have access to one, but even if there is a nice modern vehicle parked in their drive, that’s not to say it belongs to them. It could be a long-term hire car, which would account for the fact that it seems to change colour from time to time, and if you get close to it, you notice it has all the latest features.

When Traditional Long-Term Hire Makes Sense (And When it Doesn’t)

If you don’t own a car and don’t want to, but you’re entering a phase in your life when you’re going to need to travel for a fixed period of anywhere from a few months to a couple of years, getting a long-term rental vehicle is the perfect solution. It gives you the mobility you need for as long as you need it, but you don’t have all the hassle of buying and selling. It belongs to a hire/rental company, and they can worry about that.

If the period when you’re going to need a vehicle is longer than that, though, renting is money down the drain with nothing to show for it in the end. You’d be better off buying a car or choosing a rent-to-own contract, which we will look at later on.

The Hidden Traps of Leasing: Mileage Penalties and Condition Fees

The carefree nature of leasing comes from having someone else do the admin and taking responsibility, while all you do is drive the thing. However, it’s not as simple as that. There could be restrictions on how many kilometres you drive every month, with a penalty to pay if you exceed this. Also, if the car is yours, you don’t have to worry too much about what condition it’s in, whereas if it belongs to someone else, they are going to want to get it back in the end in good condition so they can sell it on to the next owner.

How RTO Provides Family Stability and Asset Building

The third option is rent-to-own (RTO), which is a lot like hiring/renting/leasing, but at the end of the contract, the vehicle belongs to you. Many people like this option as it spreads the cost and means you see something for your monthly payments. It also means that ultimately your family owns a car, plus it is an asset in financial terms: something you own and can potentially sell.

Comparing Total Cost of Ownership: Hire vs. RTO

It is easy enough to work out the overall costs of the various options. If you take a long-term rental, you can multiply the weekly or monthly cost by the number of weeks or months you’re committing to. The cost of insurance may be lower, and so may the maintenance, but you will need to check the details in the contract. It’s the same with RTO, but then you can deduct the value of the vehicle at the end, and your outgoings figure suddenly drops. You’ve saved some money.

The Psychological Benefit of Driving a Car You’ll Own

It is a good feeling to have quality belongings, and if you choose your vehicle and your RTO provider wisely, you can have a vehicle to be proud of. At RentBuyIt, we help families and businesses across Australia, including those in Melbourne, Brisbane, Adelaide, and the Gold Coast, find the right vehicle solution for their needs.