Hugo Jorge from Fleet Magazine has compiled a list of solutions that can be very useful for you when buying a car (or having…). Credit, Leasing, Renting, Rent-a-car or Car-sharing? You decide.
If you think you have to save money or ask the bank for money to buy a car, you are wrong. There are several ways to finance new car. Here are some:
- Credit: It is the most traditional way to buy a car. Both used and new. The offer is huge, from banks to specialized finance companies. The customer borrows the money and buys the car, which is in his name. From there, just pay the installments. It's the only commitment you have. There is no simpler one.
- Leasing: Widely used by companies, it has been losing ground to other financing models, such as renting. SMEs and sole proprietors also believe strongly in this system. The user of the car is not an owner. The owner is the rental company, which in turn rents to the customer (but it is the customer who chooses). The financed amount is only the amount corresponding to the period of use. In other words, if the contract is for 60 months, the amount the customer pays is the price of the car minus what it is worth after 60 months. In the end, he can buy the car himself. Can add services.
- Renting: Also called operating lease (AOV), it is a system with a very strong service component. What is contracted is the use of a car, including the services resulting from that use as well. Service, tires, insurance and the IUC are part of the basic renting packages. But this can still have fuel management, replacement car and other types of insurance. As with leasing, the customer does not own the car. The fleet manager owns the property and guarantees a fixed income for all these services over time. In the end, you are in charge of selling the car to the used market. Typically used by companies, it starts to have many private customers.
- Rent-a-car: It is the simplest system of these big four. The customer rents a car for a defined period of time. He doesn't care about anything but fuel. Rent-a-car today is no longer just a daily rental, achieving solutions for longer terms and prices and services segmented according to customer needs.
- Car-sharing: started as an idea of car sharing between several people who had the same destiny, but it has evolved and is today a dynamic market. In car-sharing, the user chooses a car that is parked in a certain place and pays for the time used and the distance covered. With strong support in technology, it is a model in which the automobile industry itself has faith for large urban centers.