Affluent Auto

Why is Car Hire So Expensive?

Why is Car Hire So Expensive?

Why is Car Hire So Expensive?
12 million cars in the UK are hired out by UK residents every year and then further more hire cars are leased for trips outside of the UK for holidays or business reasons. It is safe to say then that leasing cars it pretty popular and most definitely with good reason. The benefits of hiring for holidays and business trips are pretty clear to most people but there are also numerous benefits of car leasing instead of buying a vehicle to use for your everyday needs, for example:
  • You can get a top end supercar you really love without the upfront costs
  • You’ll have the option to change your car every few years without the effort of buying and selling. Giving you the chance to test out amazing cars you might not have otherwise got your hands on
  • Although buying a car outright does tend to be cheaper in the long run, leasing can often work out cheaper on a monthly outgoings basis and you will also save money and time not having to pay for services/MOT’s and often Road Tax
  • You get less of a headache when/if it comes to repairs than you would if you owned a vehicle
  • A really great car that you wouldn’t have been able to afford upfront and that matches your lifestyle at that period of time can offer you a better quality of life
  • It is only for 3 years, so if that zippy little sports number doesn’t fit into your lifestyle in 3 years’ time, then you’ll be able to simply hand the keys over and switch it up for something equally exciting but more fitting to your way of life

But even with all these benefits, is there really any need for the cost of leasing to be so expensive? Car Hire companies have a lot of costs and take a lot of administration and leg work that allows their customers to drive away with top of the range motors. So here’s a few of the things that car hire companies do thatall go into the cost of your hire so that we can get an idea if the cost of hiring is worth it:

  • They set up all agreements, contracts and paperwork for you to sign
  • They deal with all the cars documents, registrations and paperwork
  • They take the risk on the initial outlay on the vehicles
  • They complete credit checks via external credit checking companies, they pay for this service along with the time it takes them. They do this to ensure that they lend responsibly and that they are not putting their customers under undue financial strain
  • They complete a DVLA driving licence check, which they have to work with an external background checking company to complete
  • They include servicing, saving you time and money
  • They may even include insurance and road tax depending on your contract agreement and deal with all the associated administration surrounding this
These are just a few of the tasks the car hire companies carry out, the list doesn’t even end there, so all considered it is understandable that the monetary cost of hiring a luxury car might be on the expensive side. However, it isn’t all about the cost, it’s about quality of life, the time and worry it saves you, the ability to have the car of your dreams and have it right now, it’s these things that might not make it cheap, but they certainly might make it worth it.