Have you heard of annual and monthly car rentals? Read more to find out about all of the advantages and how much you save by renting a car for longer periods! Annual and monthly rentals are very similar to the already traditional car rental, but with one big difference: the duration of the rental.
Unlike ordinary car rentals, often used for trips, weekends, or more specific occasions, the purpose of annual or monthly car rentals is a little different. This is a service designed for people who need a car for their daily life, not just sporadically – a car of their own.
How does long-term rental work?
The annual or monthly car rental is very similar to a short term rental, but for a longer duration. If you have rented a car before, whether it’s for a long vacation or a weekend getaway, you already know a lot about what is involved.
The biggest advantage is that if you keep the car for a longer period of time, rental companies tend to give a nice discount on the rental rate. Generally, it is progressive, so the longer the contracted period, the more you save.
The discount will vary from car rental company to car rental company and depends on the car category and mileage limit you choose. That can be one, two, or three thousand kilometers or more per month. Everything is very flexible so that you find an offer that is convenient for you.
With the monthly car rental, you can keep the car from one to several months, and renew the contract according to your needs. If you want to return the car ahead of time, that’s fine too! As long as the minimum number of rental days in the contract has passed.
What are the advantages of annual and monthly car rental?
There are so many advantages to renting a car per month or year, so we put together a list.
Costs
One of the main advantages of renting a car for a longer period of time is without a doubt the price. In many cases, renting a car for a month is cheaper than having your own car. Besides being cheaper than having a car, it can also be cheaper than renting a car for short periods. This is because if a person already plans to rent for a slightly longer period of three weeks, for example, renting a car per month can compensate precisely for the reduction in the rate we mentioned above. If the dates fit your plans, that’s a good idea!
Zero bureaucracy
When you rent a car from a rental company, they remain responsible for all the bureaucracy involved in having a car: documentation, insurance, maintenance, taxes, among others. This means that the car stays with you, as if it were yours on a daily basis, but without the worry of revising or renewing documentation.
Flexibility
The rental companies that rent monthly allow you to return the car whenever you want. If you need the car longer, that’s no problem either: the rental can be extended for as long as necessary. If you want to return it earlier, just pay attention to the minimum period: the cheapest monthly rate is generally valid for rentals of 28 days or more. As already mentioned above, if you need to return the car earlier, the rate charged will be the same as for a “regular” rental according to the value of the rental on the day the contract is issued.
Always drive a brand new car
That new car smell is really good, right? If you enjoy the experience of driving different cars, you will also like the monthly car rental. Renting makes the possibility of always having a new car a reality (which is quite difficult when you buy a car, isn’t it?).
No need to worry about insurance or maintenance
As the car is not effectively yours, it is also not your responsibility to worry about the insurance and its renewal, as well as maintenance. If you have any problems with the car, just contact the rental company. Moreover, the cars rented in the monthly modality already come with obligatory basic protection, which assures the car in case of day to day hiccups, like minor repairs.
Difficulty with reselling? Never again!
Reselling a car is not an easy task. On the one hand, leaving the car at the dealership at the time of the exchange is the easiest, but it is also where the most money is lost. Reselling in private avoids financial losses, but it can take time and requires patience. When you rent a car for long periods, there is no reason to worry about that. To change your car, just talk to the car rental company – no losses!
How much does it cost to rent a car for a month?
The price of a car rental per month will depend on some variables:
How many kilometres you believe you will drive with the car: the more kilometres you, of course, the higher the amount to be paid; and car category: the higher the category, the higher the rate.
Is long-term rental an option for me?
The annual or monthly car rental is for those who not feel the need to have a car in their name. With the rise of the collaborative economy, health and safety reasons and services that seek to share experiences and even goods, this is a trend to be closely followed in the coming years. If you always like to have a new car and change it quite often (every year, for example), this service can also work very well for you! This is because the expenses and depreciation of the car are often much higher than the monthly rent.
And there’s more: renting instead of buying has an advantage that often stays hidden. Buying a car means that your money stays immobile for a while, even if you decide to resell it after a period. When you rent, the money you spend on the purchase can continue to be invested. It’s worth doing the math and to review your investments and financial situation.
What if am an Uber or a Lyft driver?
If you work with a car service such as Uber or Lyft, please pay close attention to the rental contract. Most rental companies do not allow cars rented on a monthly rate to be used for this purpose. Besides it not being allowed, it is very likely that the mileage limit established by the rental companies is not sufficient for this type of distances. If you goal is to use the car to work for a car service, contact the rental company and check out their plans.
Doing the math: buying a car vs monthly rental
Although it offers flexibility and ease for everyone, the promised savings can vary greatly according to your financial situation. The purchase of a car in cash or financed, for example, is the first thing that will make a big difference in answering the question “does it pay to rent a car instead of buying it?”
Therefore, our suggestion is that you study your situation and make an overview of how much would be invested in buying and renting a car. Don’t forget to add – for the purchase, the license values, taxes, insurance, among others, which are already included in a monthly rental amount.
What are the requirements to rent a car?
- You have to be at least 25 years old
- You need to have a valid national driver’s license for at least two years
- A credit card in your name with enough funds available for the deposit
- Security to pay the monthly rental fee