Taxis are no cool to travel these days; the fact is that a car has become our necessity, though taxis are good option if you do not wish to drive in a heavy traffic, and get away from tiresome parking issues. Basically depends on your requirement you should consider whether to rent a car or to buy one. Owing a car or renting one depends on the frequency of your travel. If you travel quite often then owing a car can is a much economic option compared to renting one. If you own a car you can make use of it any time any emergency arises. Now the question arises whether to rent a car or to buy one for you. Here’s the answer:
Economics if you consider owing a Car:
Assuming that you wish to purchase a car worth Rs.5,00,000 at a rate of interest of 10.25% p.a. for loan tenure of 60 months then your monthly EMI would be approximately Rs. 10,865/-. The Interest that would be charged towards the loan would be Rs. 1,41,108/- along with the principle amount of Rs.5,00,00/- making the total loan inclusive of your interest rate and principle amount to be Rs.6,41,108/- stretched out for a loan tenure of 5 years or 60 months. You can check your monthly EMI at Letzbank Car Loan EMI Calculator. Here were just a couple financials regarding loan alone. Apart from this there would be other factors that need to be considered while deciding if you wish to buy a car or to rent one as far as cost is concerned, such as, car insurance and also maintenance.
Economics if you consider renting a Car:
Let us assume that you travel around 50 Kilometres per day in a cab at the rate of Rs.12 per kilometre. If you calculate the cost for 5 years the amount it will turn out to be Rs.10,80,000/- that you would have spent on renting a car. The other thing you need to consider while hiring a cab is that the cab companies charge almost double the cost in name of peak hour and if you have to reach office in time you end up paying even higher prices no matter what.
1. First of all you need to ascertain, how much you use a cab service and how frequently you travel before you make up your mind to buy one or rent one.
2. Once you have analysed and considered all the factors as mentioned above you will be able to judge if it is cheaper to own a car or to rent one.
3. Make use of Letzbank Car Loan EMI Calculator for free to ascertain your Car Loan EMI for the ease of calculations.
4. Compare various loan offers before you finalize on buying a car
From the above two cases it is evident that you can own a vehicle in almost half the cost within the same span of time. While deciding between the two factors you need to consider cost factors that are involved in both the cases and analyse what suits you the best.Main Category: Loans