Which of these car-buying techniques is the most effective?
If you were wondering whether a car can be a better investment than renting, consider this new report by financial firm NerdWallet.
The research firm looked at a broad range of car purchases and found that renting is generally more expensive than buying.
That may not be a surprise to those of us who have owned a vehicle for more than a decade.
But if you are a regular user of the car-rental service, you may have noticed a striking difference in your experience.
“The rental car industry is a great way to buy a used car,” NerdWallet wrote.
“However, the industry also has a large number of sub-optimal rental car options, and most of them aren’t great for your financial well-being.”
For example, it’s estimated that more than 1 million cars are rented in the U.S. each year.
That includes thousands of rented vehicles used by the elderly and disabled.
The company said that it surveyed its clients to find out which rental car leasing companies were better for their finances.
Among the more popular options was Rent a Car.
According to the report, it was the “most-favored choice” among clients, which means it paid about a quarter as much as the average rental car in the United States.
The average rental price per year was $4,634, but that’s still cheaper than a car like the Toyota Camry ($33,000).
But if the rental car is not the best option for you, you can always look to the car rental companies that have better customer service and warranties.
NerdWallet found that a majority of companies offer “credit insurance,” meaning that they will cover the costs of repairs and maintenance if you ever need to replace a faulty part.
“Many companies also offer roadside assistance,” the firm said.
For some customers, it also includes a free trip to the repair shop, which can be an added bonus if you need to have your car repaired on your own.
NerdWise, another popular car-shopping website, also recommends CarMax, where the company offers a $200 deductible on the first $50,000 of rental car ownership.
“It is always a good idea to have a backup car or a second vehicle if you do not like the rental or the price tag,” NerdWises website stated.
However, NerdWallet said that if you have to use the car, it may be best to rent from a company that offers a better deal.
“For some people, the best way to make a good investment is to rent a used vehicle,” the company said.
“But if you’re looking for a car with a great price tag and a high reliability, then renting is probably the better choice.”
What are the best car-rental services?
The NerdWallet report doesn’t specify what is best for you.
You can still rent from various car-sharing services like Zipcar, Hertz, and Drivethru.
The NerdWiz also found that many of these companies have low credit scores, which makes it harder to qualify for a low-interest loan.
It also can be tough to know if a company is going to provide a good deal.
If you are looking to rent, it is a good start.
NerdCar, which has a reputation for having a high credit score, is the best rental car company.
It has a good rating of 96% and a “good credit score,” meaning the company has good credit history.
That means it’s able to take advantage of its low loan rates.
However it is also an example of a company which has high costs.
“CarMax is the top rental car brand, with a very high price tag but low credit score.”
You can also look to car-lease agencies like Drivethr or Hertz.
The rental companies may also offer better customer support.
NerdWay is a popular car rental company with a good credit score.
“When it comes to customer support, Drivethrush has the best customer service,” the NerdWallet site said.
However “CarNet and Zipcar have a lot of bad reviews,” the site said, and you may need to call them to get a quote.
“NerdWay is an excellent rental company, with excellent credit history, good customer service, and excellent rates.”
Rent a car?
Check out NerdWallet’s top five car-buyer tools.