Okay, one of the consequences of the pandemic is that it has been changing some habits of the general population. And one of them is regarding whether or not to own a car. Because nowadays, if you don't want to buy a vehicle, you can choose to rent a car through a subscription. But do you know which option is more advantageous between financing and a car subscription?

Well, if you need a car, you should consider both options. Each has its advantages and disadvantages.

Thus, one of the important changes brought about by the pandemic was the implementation of working from home, due to the imposed lockdown.

Life seems to be gradually returning to normal. But most companies have realized that having their employees work from home can bring a number of advantages.

Therefore, owning a car has ceased to be a priority for many people, as the need to have a vehicle available has decreased.

As a result, car rental subscription services began to grow and establish themselves in the market.

However, on the other hand, there is the possibility of owning your own vehicle. Through financing, it's possible to buy one.

But this scenario raises a question.

Financing or car subscription? Which is more advantageous?

Well, to answer that question, it's necessary to know the pros and cons that each option offers.

Therefore, it will depend on your expectations and priorities. You need to analyze what the best option is for you and your budget.

So, let's learn a little more about what financing is and what its pros and cons are.

Vehicle financing is simply a loan. Financial institutions offer this option to their clients so they can purchase their own car.

So, you receive the money to buy the vehicle, and you pay monthly installments to the bank until the loan is paid off.

In some institutions, these installments can be up to 60 months.

But to calculate the amount to be paid, the bank considers the total loan amount and the number of installments. The loan interest rate is then applied to this.

This fee is charged to minimize the risk of default on the part of the buyer.

Therefore, if you choose to finance, do thorough research to find the best interest rates.

Let's find out, then, what the advantages and disadvantages are of financing the purchase of your own car.

First of all, with the money from the financing, you will be acquiring your own asset.

Furthermore, it has the advantage of potentially lower monthly payments.

However, interest rates are high. Planning is necessary to secure good financing and have peace of mind.

Another advantage is that you can drive your car as much as you want, without worrying about franchise limitations.

One of the disadvantages is that the vehicle will only truly be yours after all installments of the financing have been paid. Until then, it remains under lien to the financial institution.

In other words, you can't resell it, for example.

Furthermore, owning your own vehicle also means you'll have to bear all the costs. From maintenance, servicing, and tax payments, to regularizing documentation, among other things.

So, what exactly is a car subscription? Read on below and get your questions answered.

Well, a car rental subscription service is similar to a regular rental, but with some unique features.

Currently, it's not just rental companies that offer this service. Even the car manufacturers themselves are entering this expanding market.

First, you pay a monthly rent. The terms vary from 12 to 48 months, depending on the company.

Next, you should choose the make, model, color, and accessories you want, just as if you were buying a car at a dealership.

Also, if you rent from a manufacturer, you'll have the vehicle available quickly. But if it's a rental company, they'll take care of buying the car for you.

So, with a subscription-based rental, you have a brand new car at your disposal all the time.

And if you have some money available, you won't need to spend it on buying a car. You can use it to pay off some debt, or even make an investment.

Another great advantage is that your only concern is driving and paying for fuel, parking, and tolls.

Because all documentation, tax payments, scheduled maintenance, and periodic inspections are included in the contract.

Furthermore, you'll have access to 24-hour roadside assistance, a replacement car, and other benefits.

One disadvantage of renting a car is that it will never be your property, even though you have the option to buy it at the end of the contract.

Another drawback to consider is that with subscription-based rentals, you have a mileage limit. This ranges from 1,000 to 3,000 km, and you will pay an extra fee for each mileage exceeded.

Also, depending on the monthly rental cost, you may incur higher expenses for longer periods. In that case, buying a car would be more advantageous.

Okay, to be able to answer that question, the first thing is to make a good plan of your financial situation. Because your decision will depend a lot on the budget you have available.

Another important issue to consider is the purpose of using the vehicle. That is, what is the necessary period of use, how often, and how much driving is required during the month.

As we mentioned above, owning a car involves several additional expenses. But you won't have these expenses when choosing a car subscription service.

Therefore, you should consider expenses related to documentation, taxes, maintenance, and servicing if you choose to purchase your own vehicle.

Whereas, with a car subscription, the only concern is the basic costs.

In conclusion, both financing and car subscription have their pros and cons. As we've already said, your actual financial situation and needs will determine your decision.

Therefore, plan well. It will guarantee you a great deal on the car you need.

And if you're looking for a good option for renting your car through a subscription service, check out more information about Moove below!