Many of you ask yourself the same question: is it worth investing in a new car, and if so, which model is the most profitable? What if you invest in a vehicle to rent it out? Follow our guide.
What Does The Phrase “Lease With Option To Buy” Mean?
Car rental between individuals tempts you? Are you hesitating to buy a car and make it profitable by renting it? Your questions interest us, so we have looked into the subject to help you see more clearly!
Does the car still have an important place in daily use and the hearts? The answer is yes! Before we owned a car, today we prefer to use to own it. However, our habits are no longer quite the same. Do you follow?
Owning a car is expensive and represents the second item of expenditure for households. Between insurance, use, gasoline, overhauls…15% of motorists’ monthly budget goes towards car maintenance. In short, this represents a substantial budget, which we would do well.
Renting a car allows you to considerably reduce your costs while using it when you need it. In this case, investing in a car is good, but which model to choose and on which assets to base it?
The PRK index determines the price per km per car and is based on several criteria:
City cars, good value for money?
City cars are the most popular cars to rent. They are fairly versatile cars unless you have a specific need: marriage, large family, etc.
It is therefore understandable that city cars are among the most rented cars! The average purchase price for this type of car is $14,500, which is, of course, relatively low among all the types of vehicles offered. In addition to that, they are the least expensive in use, as seen with the PRK index. This type of vehicle is very modular: reversing camera, heated mirrors for frost, etc.
The advantages of the city car in a nutshell:
- Fewer and fewer city dwellers (people) see the need for a permanent vehicle and prefer renting
- The most functional vehicle that will meet most user requests (except specific ones)
- The cheapest vehicle to buy, use and maintain
- Many options can be added to give your vehicle a plus.
- Investing in a city car is a safe investment and will ensure you many rentals!
The utility, a good investment?
Specific vehicles used for specific uses such as for moving, flea market and other furniture loadings that is to say for a more spacious need than a car can be very interesting to rent and very profitable, the things to look for is:
- It does not suffer from seasonality because it is a constant need
- It is one of the most rented vehicles, the most requested
- The high demand concerns both large cities and small
- Less maintenance, regardless of a small mark on the bodywork, tenants are less careful than on other vehicles.
In itself, it is preferable to choose a vehicle with a low cost per kilometer, which does not consume a lot to make profitable the fixed costs such as insurance and overhaul, which remain the same regardless of the mileage.
Should I choose a petrol or diesel car?
As a general rule, a few years ago, we would have advised you to invest in a diesel car when you use your car often, that is to say beyond 15,000 km per year if you do not drive then in town. But today, we can see that gasoline is gaining importance in the eyes of motorists. Why?
The price of fuel is at a rather low level.
New anti-pollution systems have become mandatory for diesel cars, and they are very expensive, and there is a risk that diesel vehicles will be banned in some cities/areas.
The new gasoline engines are gaining in sobriety.
Therefore, it is more and more interesting to buy a gasoline-powered car, knowing that their purchase price and operating costs are increasingly low.