HELP – Buying or Renting

Buying or renting is always a difficult decision – please use our below advice in making the right decision for you…

Buying Cars/Campervans

  • Total Freedom. The vehicle belongs to you – so you can take it anywhere you want to. Dirt tracks? No problem! As long as you don?t do any damage to the vehicle, your Guaranteed Buyback price is secure.
  • The Guaranteed Buyback of Travellers Autobarn means you’ll definitely get some money back at the end of your trip, either to go home with or to continue travelling.
  • Remember that at the end of your trip you are not obligated to sell to the vehicle back to Travellers Autobarn. You are free to sell the car to whoever you choose, naturally this is usually the person who makes you the best offer! If you’re a good salesperson, it’s possible to get back more than the 50% we guarantee you by selling to another traveller.

Renting Cars/Campervans

  • If you have only limited time to spend, renting not only saves you money but also time. Picking up and dropping off a rental car is much quicker and easier than buying and selling a car. People who buy a car, even with a guaranteed buyback, spend at least a some time (if not days) trying to sell their car on to other travellers.
  • Hassle Free. Should any problems arise during your rental period, they are the responsibility of the rental company. Travellers Autobarn will make every effort to get you speedily on your way again.
  • You can afford more car for your money when renting in the short term. For 10 weeks buying a $4,500 stationwagon with with a Buyback might be outside your budget, but renting the same car for $39/day is certainly affordable.

Car & Campervan Price Samples

Buying vs Renting – Cars

You wouldn’t buy a car if you only needed it for a few days, and by the same token you wouldn’t rent a car to travel around Australia for a year.

So when is buying a Travellers Autobarn car better than renting a Travellers Autobarn car, and when is renting better than buying? This can be answered quite simply if we compare the two options purely in economic terms.

Basically, we think that if you’re travelling for 8-12 weeks or less you should probably rent a car. For a longer trip of 12 weeks or more you buy a car. Have a look at the example below to see just what we mean.

This example is based on the rental of a Ford Falcon Stationwagon with a variable daily rate, and the sale of a Ford Falcon at $3500 with a Guaranteed Buyback of 40%.

COST OF RENTING A TRAVELLERS AUTO BARN CAR
COST OF BUYING A TRAVELLERS AUTO BARN CAR
4 WEEKS
$1260
($45/day rental rate)
not worth it
8 WEEKS
$2520
($45/day rental rate)
not worth it
10 WEEKS
$2800
($40/day rental rate)
50/50
12 WEEKS
$3360
($40/day rental rate)
once you past 12 weeks: buy it!
16 WEEKS
$3920
($35/day rental rate)
the best option

 

At 10 weeks you would spend roughly about the same amount of money renting the car as you would if you bought the same car and sold it back to us with a Guaranteed 40% buyback. However, often it’s not just about money.

Buyings vs Renting – Campervans

While Campervans and Vans are more expensive than cars, they obviously fetch a much higher Buyback or resale price. The table below will give you a comparison between three options: renting one of our Hitops – a 2003-2005 model, buying a Van (similar such as our Chubby Camper but of an older age) or buying a proper Toyota Hiace Campervan (simiar to our Budget Camper models – 2000 – 2002 models).

The table is calculated at an average daily rental rate for the Campervan. The cost of a converted Van is averaged to $5,500 and the cost of the HiAce Campervan is $13,500.The Buyback prices are calculated at 40% in this case.

Renting a
Hitop Campervan
Buying a MiniVan
Buying a
Hitop Campervan
4 Weeks $2100
(@ $75/day rental rate)*
Don’t even think about it Are you insane?

8 Weeks
$3864
(@ $69/day rental rate)*
still cheaper to rent keep looking down the column…

10 Weeks
$4550
(@ $65/day rental rate)*
50:50 further…
12 Weeks $4956
(@ $59/day rental rate)*
Buying your own van makes a lot of sense keep going…
16 Weeks
$6160
(@ $55/day rental rate)*
Buying 100%! actually, it is about 22-30 weeks that it becomes economical

* Daily rental rates used here are an example only and will vary seasonally.