Find solution
Renting a car in Italy?

Why does renting an apartment give you a much better value than renting a car?

  • Let's say, a place that's worth $100,000..... you could rent for $500 per month....($6000 per year).... 6,000/100,000 = 6% The annual rent is only 6% of the property's value. When you rent a car, however.......... let's say the car is worth $10,000. let's say, rent is $20 per day......($7300 per year).... 7300/10000 = 73%. 73% is a whole lot bigger than 6%. How come renting an apartment only costs a small fraction of the apartment's value.... but renting a car costs a very large fraction of the car's value? I understand the difference is: People rent apartments Long-term, People only rent cars Short-term. but if, hypothetically, you wanted to rent a car for a year.....wouldn't it be somewhere in the ball-park of $10 to $20 per day? even if you cut it down to $10 per day, the annual rent would still exceed 30% of the car's value.

  • Answer:

    You don't rent a car for a year, you would LEASE a car. Cost is still higher than an apartment because a car depreciates in value whereas an apartment usually does not.

Lois Griffin at Yahoo! Answers Visit the source

Was this solution helpful to you?

Other answers

because you cant crash a house into another house?

they call me Sir

I'd say it has something to do with depriciation. Property is a good investment because it doesnt usually go down in value over time. Cars on the other hand, drop immediately as you drive them off the lot. An apartment that has been lived in for just five years is good as new, and with a little cleaning, can be rented back out for the same amount that it got while new. A five year old car is not going to sell for anywhere near as much as a new car. Plus, when people rent cars, they drive them very hard, and thus the cars tend to have more problems as they get older. Thus, in order to keep up with the high cost of renting out cars, rental companies have to charge a higher percentage.

zack m

For a umber of reasons. Cars depreciate rapidly, much more so than apartments. In those localities that have rent control laws, or at least inspections, the rent may remain lower and the landlord is required to make repairs and other amenities. With a car you are on your own you pay huge insurance fees particularly if you are a new driver, have points on your license, and in case a person who crashes into you has minimal insurance, you are up the creek. So that's why I prefer apartments to cars. Also with rented autos you pay for mileage, and fuel as well,, Hope this helps

DR.R.Luxemburg

tell me where you can rent a car for $20 a month and i will give you any answer you want to hear !

The Sicilian from NY

because thats how it is

Fate

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.