While rent-to-buy schemes are becoming more popular and drivers are tempted by them, they’re not as great as many people imagine. Various issues don’t get highlighted enough. Here’s why a rental PCO car option is much better while providing all the great features you need:

Failing to Complete Payments

Many rent-to-buy systems have fairly stringent terms and conditions. They’re extremely strict about the payment plans, and you need to ensure that no payments are missed. If you fail to meet their terms and conditions, you might be ineligible and get disqualified from the program.

A lot of people don’t end up getting the car they want to own eventually because managing all those funds can be hectic. From tough payment systems to strict deadlines, it’s a hassle that people get fed up with in the long run. Companies generally repossess the car and terminate the contract due to default, which isn’t the case with PCO car hire in South London.

They’re Costly

To put it simply, rent-to-buy schemes are akin to paying for a car you purchase from a loan. They won’t often say it outright, but they account for the interest in the long run. While it might seem like a good idea because you currently have the car in your possession, you end up paying a lot more in the long run for the same car, especially for a premium option like an EV.

Cost Comparison

Rent to Buy

Kia E-Niro 2:

• Contract term: 60 Months (£260 in five years) £65,000.00 plus a £500 deposit
• The cancellation cost will be whatever you paid plus your down payment of £500.

If a customer ends up defaulting or ending the contract even halfway or 2.5 years into it,  they would lose around £33,000.00. Plus, they could have used this money to pay for a brand new Kia E-Niro bought privately.

Purchasing A Car Privately

Kia E-Niro 2:

Purchase price: £31,500.00

• The monthly cost of insurance: £130 (On average)
• Servicing and MOT: £3000 in five years (On average)
• Total cost in five years: £42,300

You end up saving around £23200 this way.

They Take Too Long

Lastly, rent-to-buy schemes are often fairly lengthy and can take up to 5 years. The car you initially wanted to acquire for yourself might be old and obsolete by the time you’re done paying for it completely. Various surveys suggest most taxi drivers operate in the business for around 2 years until they switch jobs. Essentially, you’re bound to be a taxi driver until the term is complete or you lose all your money.

 If you’re using it as a PCO car rental and driving it a lot regularly, likely, the car won’t likely be in great shape either. According to some estimates, the value of a company-owned vehicle compared to the one you get from a dealership is 50% or even less for the same model. If you’re getting the car fairly early, your payment plan might be hard to manage and you could be a defaulter. All the money you could’ve saved instead of paying extra for the rent-to-buy could’ve been better spent buying a car outright down the line.

Get a Rental

For most people, the sensible way to make a modest but rewarding earning as an Uber or Bolt driver is opting for a  PCO car for rent. G&M Direct Hire has premium options at affordable rates. They offer options for some of the most sought-after PCO cars to rent, available in both diesel and EV options. The company offers PCO-licensed car hire in London, covering areas like Slough, Edmonton Ilford, Wembley, Ealing, and Harrow, among many others.

The company has set up its services to facilitate its users to the best of their ability.