Which one is better, renting or buying your own car when you live in the outskirts?

Nowadays, many people buy their dream house in the outskirts of the city where they work in. These people have to commute, but they face a dilemma: Is it better to rent or buy a car?

It is understandable that people are more interested in owning a home in the outskirts. Medium-sized houses of 50 to 60 square meter space outside Jakarta are offered from Rp200 million to Rp1.3 billion, based on research firm "Cushman and Wakefield Indonesia" 2015 report.

"A medium-sized house is built on a 100-200 square meter land,” Cushman and Wakefield Indonesia Research and Advisory Director Arief Rahardjo said, as quoted from "Kompas Properti" on Sunday, February 12, 2017.

That is why many people who make a living in Jakarta usually reside in Bekasi, Depok, Tangerang, Bogor, or even a bit further.

Living in the outskirts

Living in the outskirts has its own benefits as it has cleaner air and water like in Bogor.

Apart from those two things, installment plan to purchase a house in the outskirts is affordable, in particular for houses priced Rp200 million to Rp300 million. Price is such an important factor considering houses and lands are getting more expensive, even for those far from the city.

Another benefit is the availability of various modes of public transport. People can choose to take TransJakarta's integrated bus network (APTB) or commuter line train service.

But if those two options are inaccessible, car would be a good transport mode for people with a busy lifestyle. The question is, should we buy or rent a car from a trusted transportation provider?

Buying or renting?

According to Indonesian Automotive Manufacturers Association (Gaikindo), around one million carsare sold annually over the past two to three years. 1.01 million new cars were sold in 2015, while 1.2 million new cars were sold in 2014. Various car models are offered with an array of promotional programs, attracting customers who want to own a new car.

Down payment for cars aimed at first-time buyers, such as for low MPVs, city cars, or low cost green cars (LCGCs), could cost dozens of millions of Rupiah. The installment plan requires buyers to pay Rp3 million to Rp4 million each month. For some, such installment plan is still affordable.

However, renting a car also provides some convenience. Renters do not have to pay for maintenance or paying taxes every year and every five years.

For your information, there are two types of spare parts: fast moving and slow moving. Fast moving spare parts such as engine's air filter, spark plug, and brake pads, must be replaced regularly. While slow moving spare parts, such as suspensionparts, can be used for a longer time. Slow moving spare parts are usually sold at a higher price.

Customers who decide to rent a car may not own their own cars, but they do not need to pay for maintenance fees because it is the rental company who is responsible for them. Monthly rental fee is usually not too different from the monthly installment for buying a car.

A rented car could bring a similar level of convenience like a new car could. Nonetheless, it depends on the guarantee and the service provided if the car suffers a malfunction.

TRAC, a subsidiary of Serasi Autoraya (SERA), offers a solution for the need of trusted transportation provider. As part of Astra, we guarantee quality service as well as safe and comfortable cars. A 24/7 service is also available for customers.