The price of owning a car can’t always be justified, but that doesn’t mean you can just buy one, say experts.
A new report says that the average annual cost of owning one vehicle can’t be justified in the US, even if you’re willing to rent it.
The US car rental market has been under pressure since the economic downturn, with home prices falling by an average of over a third in recent years.
The average price of a new car in the United States dropped from $26,000 in 2010 to $19,000 last year.
But experts say that’s still too high, and the real cost of buying a car has fallen by $1,300 in the last year alone.
But the new report, commissioned by the American Automobile Association, says renting a car is often too expensive.
“The average annual rent for a new-vehicle rental is $4,800, but the average cost of ownership is $25,300,” the report said.
“Thus, for those who are willing to pay the full $25.300 rent, a rental car may be the better choice.
However, renting an older car for a similar amount of time is often more affordable, and can be more convenient for those in lower-income households.”
For some, the report suggests that the US car rentals market is still undervalued, despite the economic recession.
“It is important to note that the market value of rental vehicles is highly dependent on factors such as supply and demand,” the authors wrote.
“Demand for rental vehicles will likely decline during this period, which will lead to a decrease in the value of the rental vehicles.”
However, many experts are sceptical of the report’s findings, saying it could be an attempt to downplay the real costs of owning an expensive car.
“There is a growing trend of people saying the cost of cars is not worth it,” Dr Sarah Gifford, a senior lecturer in economics at the University of Nottingham, told the BBC.
“But I’m not sure that’s the case.
The economics of buying and selling cars would be very different.” “
Even if you were to buy a car outright, the costs would probably be higher.
The economics of buying and selling cars would be very different.”
The report said the average rental car cost was just under $10,000, which is below the current average for new cars in the country.
The report also found that the cost for owning a rental vehicle was actually cheaper than the average for owning conventional cars.
The median monthly rental cost was $1.084, which was lower than the $1;1 average monthly cost for new conventional cars in 2010.
“Rentals are typically more expensive because they’re a rental, rather than a purchase,” Dr Giffent said.
The study’s authors also said the rental market could be “changing” in the coming years.
“One thing we are hearing anecdotally is that the rental rental market is slowly changing,” Dr Graham Taylor, a director of the National Association of Real Estate Investment Professionals (NAREP), told the news agency.
“In the past, the rental industry had very little competition from car rental companies.”
He said that the new data also revealed a lot about the state of the market.
“Many people would love to have a car that they can drive for as long as they want,” he said.
What we do know is that in the short-term, the cost and convenience of owning and renting a vehicle will increase, but this will be offset by increased environmental and social costs.”