Buying Versus Renting an Electric Vehicle

Posted on: Feb 20, 2023 | | Written by:

Buying Versus Renting an Electric Vehicle

Published on February 17, 2023. EST READ TIME: 4 minutes

Electric vehicles are all the rage these days. There is a constant uptick in the number of car manufacturers offering electric cars. And the number of electric cars available for owners is also rising. A strong push from the government for vehicles to be all-electric is also one of the leading reasons. If you are wondering how this impacts ownership and car insurance price, here are further details.

As more manufacturers launch models and EV charging stations are set up, the ownership experience will only improve. Amidst all these changes, you can now even rent electric cars. This opens the discussion, yet again, of whether a person should rent a car or buy it. Since you can now rent electric cars, assessing both options makes sense.

Electric vehicles: buy vs rent.

The recently concluded Auto Expo had a few upcoming EVs on display. This clearly shows the direction that car manufacturers want to take in the near future. There already are a few electric cars in the market, which are getting more popular by the day. Thus, it is essential to explore whether buying or renting makes more sense. When you decide to buy an electric car, there are a lot of expenses that you need to consider. To start with, you need to pay for the car at once. You can either do it with your funds or take the help of a financial institution. Should you decide to take a loan, you will need to pay EMI for the next few years. The costs that come after that are where there is a major difference between an EV and an internal combustion car.

The running cost of an electric car is a fraction of that of an internal combustion engine car. So are the maintenance costs of the car. Since there are fewer mechanical parts in an EV, it results in a lower maintenance cost. You will also need to consider the car insurance price. Since the upfront cost of an EV is usually higher than ICE cars, the cost of comprehensive car insurance will also be high.

However, when you decide to rent an EV, you will not have to worry about many of these expenses. You can rent an EV by paying a daily price for the car, and that’s about it. Depending on your plans, you can keep the car for as many days as you need. When renting an EV, you need not pay the upfront cost of buying the car or regular maintenance.

The daily tariff will take care of temporarily owning the car. As you use the car, you will need to pay for charging, which again is quite reasonable compared to ICE cars. Another advantage is that as a buyer, you need not worry about comprehensive car insurance, as the rental company will take care of them.

Pros

When you decide to rent an EV versus buying one, here are some of the significant advantages of it.

1. Renting a car is a cost-effective measure. As a consumer, you don’t have to worry about maintaining the car or about servicing or even the cost of buying. The renting company takes care of all these. By paying a daily tariff, you can use the car.

2. If you are someone who wants to try out different cars, renting them might be a much better option. Every time you rent a car you can choose a different one. This way, you can experience a number of cars without actually owning any of them.

3. Rental cars usually come with accessories that one might need for a comfortable driving experience. You will find GPS or Bluetooth music systems in rental cars.

4. It is a much better alternative to public transport, which can be quite tricky depending on the city that you are staying in. And it gives you a lot of freedom over public transport.

5. Renting a car is quite affordable compared to buying a car.

6. Renting an EV is an intelligent way of checking out the dynamics and characteristics of the car before actually buying one. Sure, you can take a car for a test drive, but it is only for a limited time and duration. By renting, you can keep the car for a bit longer duration and decide whether it is for you or not.

7. The rental company will take care of the insurance of the car. Thus, you can renew expired car insurance or keep track of the current policy.

Cons

Though there are quite a few benefits of renting an EV, it also comes with some cons. Here are some of them.

1. The amount that you pay for renting a car is non-refundable. Even if you book a car and do not use it much, you must pay the entire amount.

2. It is very important to return the car in the same condition as you brought it. Any sort of accident can be quite tricky and expensive to handle. There have been numerous cases where people have been troubled while renting cars due to incidents and accidents. Thus, you must be quite cautious.

3. The driving controls of all the cars might differ a bit. Thus, it might take a while for you to get used to them before you can start using them.

4. One needs to be aware of the additional charges while renting a car. If you do not return the on time, you might end up paying the penalty.

5. Even though rental cars have comprehensive car insurance, you might pay for damages from your pocket.

Cost Comparison

Electric vehicles are still in their early stages. This means that a lot of the cost of buying the car goes into R&D. One of the biggest costs associated with an electric vehicle is the cost of the battery. All these factors lead to a higher price point when buying an EV. And more importantly, you might need to find out if the EV suits your needs or driving patterns.

If you have decided to buy an EV, it might be a good idea to rent an EV out for a few days and drive it extensively. Driving the car for longer than test drives will give you a better understanding of the car without actually owning it. Thus, helping you decide whether to proceed with the purchase or not. Also, with rental cars, you don’t have to worry about how to renew expired car insurance.

Conclusion

The cost of buying an electric car is high as of now. A higher price point also leads to a higher car insurance price. Renting an EV for a short duration can be a good alternative if you want to try the car for a longer duration. Renting a car also makes a lot of sense if you expect to avoid driving your car much. Should you decide to buy an electric car, the car insurance price largely would depend on the price tag of the car and its age.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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