Buy Or Rent A Car?

[THAIPHUKET]

Some of you are more into financial math.

Very roughly calculated on an envelope it seems to me that renting is the better option over buying a car. Right or wrong?

Assume price 800.000 for a new car versus 12.000 p.m. in rental.

- I lose interst on 800.000 cash , say 4% 32.000 p.a

- I lose in value say 70% over 5 years= 48.000 p.a.

- I pay maintanance, etc, say = 30.000 p.a.

TOTAL 110.000 p.a.

compared to 12x12.000 rental 144.000 p.a.

The 144.000 are the maximum because I have the freedom not to rent/pay whenever I prefer my motorbike, or when I am abroad that deducts a minimum of 3 months.

AND I can get ALWAYS the latest model.

Perhaps my envelope is wrong, otherwise more people would rent. Even if I rent the full 12 months I save more than I if I put the difference into a savings account for a new car after 5 years. It would not be enough to pay for the new car minus proceeds from sale of old car.

[PattayaParent]

My old car cost me 510,000 Baht and sold it 11 years later for 140,000 Baht.

So that's a loss in value of 70% over 11 years, not 5 years.

I never spent as much as 30,000 Baht on it at any time during it's lifetime. Maximum probably 25,000 Baht once or twice INCLUDING insurance costs.

Where can you rent the latest model of an 800,000 Baht car for only 12,000 Baht a month?

I think you need to do your math again.

[petitechevre]

Yes, where can you rent new models for that price..

Def more intersesting than buying a car.

[THAIPHUKET]

ok, my assumptions may be overly optimistic.

But read this from another forum posted in July

QUOTE

I have been making the best of the low season car rental promotions (under 900 baht per day for a brand new car out of Suwannabhumi airport, a bargain) and the quietish roads due to the provincial peasants not being able to afford oil, by renting a new model Honda Jazz for a few days. I travelled all around Trat, Chantaburi, and then took the beautiful country road (up there with roads around Chiang Mai for beauty) up to Sa Kaew and cut across b-roads in Chachoensao province back to the airport.

The new Honda Jazz is a fabulous car, to me a perfect combination of refinement, power and economy.

UNQUOTE

OR THIS, ADMITTED IT´S ONLY A 2006, BUT DOES IT MATTER AT THAT PRICE?

http://www.carrenthuahin.com/index.php?p=m...ModelID=0000006

Can anyone say what a reasonable secondary market value is of a 5 year old car OR

how to come up with a break even point car rental versus car purchase, what are reasonable assumptions ?

[Neeranam]

Buy, and when you don't want to use it, rent it out if money is that important.

You're not Scottish by the way are you?

Should be in the breadhead forum.

[PattayaParent]

Can anyone say what a reasonable secondary market value is of a 5 year old car OR

how to come up with a break even point car rental versus car purchase, what are reasonable assumptions ?

Look at www.one2car.com or www.thaicar.com or www.taladrot.com or www.deeteesood.com to get some ideas of the value of a 5 year old car purchased from a dealer.

I think the cheapest new car rents for 18k a month. You might get a better deal with Q Cars for an older car.

[mizzi39]

I drive a 2006 Toyota Vios E class no frills car, but economical and dependable. Better to buy if you can afford to unless you are only here for a short time. Depending on the car, rentals can be high. As a foreigner you really need the cash up front (to buy), since you cannot finance unless a Thai signs for you, but I am sure there are exceptions.

Honda Jazz or Toyota Vios: 6,500-8,000 baht per month max. finance or rental.

Edited September 9, 2008 by mizzi39

[petitechevre]

900baht a day, is a deal for a new rental?

In canada i could get a <deleted> mustang GT 250hp for that price

900baht a day for a stupid honda jazz with 100hp.. yeah.. good fking deal

rentals are so overpriced here its insane...