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Monthly rental charges have increased. Is buying a car better than renting a car?

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if you considercar rentalInstead of buying a car, the savings will not be as urgent as expected.

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With limited inventory due to ongoing supply constraints, resulting in fewer options and higher prices, discounts on new vehicles are limited, whether buying or renting a car. According to a joint forecast by JD Power and LMC Automotive, the average incentive is estimated at 894 yuan, up from 2,000 yuan a year ago.

Thomas King, president of JD Power’s data and analytics division, said: “One factor that has contributed to the reduction in incentives is the lack of discounts on leased vehicles.”

The study noted that the average discount fell below $900 for the first time in July and remained below $1,000 for the third consecutive month. In addition, according toVehicleAccording to comparison site Edmunds.com, the average monthly payment for a new car lease increased to $594 in July from $575 in June.

“Dealers don’t get the automaker’s stimulus packages, so even if they do, they don’t take it,” said Evan Drury, Insight’s senior manager at Edmunds.

Data from Edmunds shows the proportion of new vehicle transactions involving leases fell to 18 percent in July, the lowest level since February 2009. The rate was 27.2% a year ago.

Even with the lack of incentives, if it’s a constant lease, it can still make sense, Durie said. Be prepared to accept limited options and higher monthly payments compared to 3 years ago.

“There used to be people who didn’t like to own a 4 or 5 year old car,” he said. “Now it’s paying more.rentTo rent a car. ,

Also note that if a vehicle rental contract ends this year, experts recommend reconsideration options, as the current value of the rental car may exceed its intended residual value.

The demand in the used market continues to grow as the inventory of new vehicles is limited. Cars aged one to three years old cost an average of 13,145 yuan more than traditional depreciation expectations, according to data from car-buying software CoPilot. Car leases are usually around 3 years and come with mileage limits.

This means that it may be more worthwhile to purchase a lease than to return the vehicle. If you buy the lease at the agreed residual value, the price will certainly be less than the current value of the vehicle, and certainly less than buying the car from a dealer.

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