So you’ve decided you want to go on a road trip…awesome! … but you don’t have a vehicle…hmmmm. So you gotta ask yourself… should I buy one or should I rent one? This can be bit of a difficult decision to make and it’s important to decide on a vehicle that’s right for you and importantly, budget friendly! With over 20 years experience buying, selling and renting cars and campervans to backpackers Travellers Autobarn is a bit of a veteran when it comes to this kinda thing so we though we’d share some of our knowledge!
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 car better than renting a car, and when is renting better than buying? This can be answered quite simply if we compare the two options purely in economic terms (yeah we’re gonna get a bit serious for a minute now). 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
$1260 ($45/day rental rate)
not worth it
$2520 ($45/day rental rate)
not worth it
$2800 ($40/day rental rate)
$3360 ($40/day rental rate)
once you past 12 weeks: buy it!
$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. If you value freedom over the price tag, you’re gonna enjoy your trip more if you buy.
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
$2100 (@ $75/day rental rate)*
Don’t even think about it
Are you insane?
$3864 (@ $69/day rental rate)*
still cheaper to rent
keep looking down the column…
$4550 (@ $65/day rental rate)*
$4956 (@ $59/day rental rate)*
Buying your own van makes a lot of sense
$6160 (@ $55/day rental rate)*
actually, it is about 22-30 weeks that it becomes economical
* Daily rental rates used here are an example only and will vary seasonally.
Here at Travellers Autobarn we buy and sell cars directly at our branches (Sydney, Melbourne, Darwin, Perth and Cairns) as well as operating a car sales website www.cars4backpackers.com.au where you can buy or sell to fellow travellers. If you’re interested in buying or selling a car to us directly give us a call on 1800 674 374 and our Sales and Buyback team will be happy to assist you. Otherwise go ahead check out the cars4backpackers website which features more useful info on buying or selling a car and shows you what’s on offer and the opportunity to list your vehicle. We hope you found this blog post useful and it helps you make the decision that’s right for you! For all campervan or car hire click here, and sales enquiries click here, or give us a call on 1800 674 374.
We’ve got many more Buying and Selling Campervan and Car articles for you, come and explore.