Car Lease, Car Rental and Car Share in Calgary
As the long weekend of Labour Day on August 30, 2024, approaches, many new immigrants might find themselves in this beautiful country but feeling bored due to transportation issues. Canada’s natural scenery is stunning, but without a private car, many find it difficult to explore freely. This situation is especially prominent with the current inflation causing living costs to rise. High transportation costs have become a significant challenge for many families, limiting their travel options and quality of life. In this context, car leasing, car rental, and car sharing have become viable alternatives.
Firstly, long-term car leasing is a method where you rent a car for a period, typically 2 to 6 years, enjoying the latest models at a lower monthly cost. This is an excellent option for those who need a car long-term but do not want to pay a large sum upfront to purchase one. Car leases often include maintenance and service, further reducing the burden on the user. However, it is important to note that lease agreements usually have mileage limits, and exceeding these limits will incur additional fees.
Secondly, short-term car rentals are ideal for weekend trips or temporary needs. Rental services offer high flexibility, allowing users to choose different types of vehicles according to their needs. Whether it’s an SUV for family trips or a compact car for city commutes, there are suitable options available. Although rental fees are calculated daily but not exceeding 30 days, if used occasionally, the total cost is still lower than owning a private car. Additionally, rental companies usually provide comprehensive insurance services, and premium credit cards, as well as foreign currency cards, offer LDW (Loss Damage Waiver) insurance with coverage up to CAD 85,000 to 100,000, making car use even more reassuring.
Lastly, car sharing is typically a rental method charged by the hour, especially suitable for those who only need a vehicle occasionally. Car sharing costs are relatively low, and users do not need to bear maintenance and insurance costs or pay for parking fees, making it particularly convenient for those living in urban areas. During peak periods, the availability of car sharing services may be tight, but overall, it is an environmentally friendly and economical travel option.
These transportation options provide new immigrants with flexible travel choices, allowing them to enjoy the beauty of Canada without owning a car. This Labour Day long weekend, consider using car leasing, car rental, or car sharing for an unforgettable trip. These options can not only reduce the burden of transportation costs but also allow you to explore and experience life in Canada more freely, breaking away from the ‘beautiful scenery but boring’ dilemma. With these alternatives, you can enjoy the fun of traveling without worrying about high transportation costs.
Below is a summarized comparison of the advantages and disadvantages of long-term car leasing, short-term car rental, and car sharing in the Greater Calgary area:
1. Highlights of all car rental methods
- Long-term lease－Usually lasts 2 to 5 years or longer. Payments can be made weekly, bi-weekly, or monthly.
- Short-term rental－Good for a short period, from a few hours to several weeks, usually not exceeding a month. This is ideal for temporary use, such as for travel or when your car is being serviced.
- Car share－Charged by the hour. Ideal for those who need a car occasionally but do not want to bear the cost of ownership.
2. Pros and Cons of Long-Term Car Lease
- Advantages
- Lower monthly payments compared to buying a car.
- Access to the latest models and features.
- Lower maintenance costs during the warranty period.
- Disadvantages
- Mileage limits with additional fees for exceeding them.
- No ownership equity in the vehicle.
- Possible wear and tear fees.
(e.g. corrosion of the car chassis due to road salt in winter)
3. Pros and Cons of Short-Term Car Rental
- Advantages
- Flexibility to choose different types of vehicles.
- No long-term commitment.
- Suitable for short-term needs.
- Disadvantages
- Higher costs for long-term use.
- Additional fees may apply (insurance, fuel, etc.)
4. Pros and Cons of Car Share
- Advantages
- Economical for occasional use.
- No maintenance or insurance costs.
- More environmentally friendly, helps reduce the number of cars on the road.
- Disadvantages
- Limited availability during peak times.
- Higher costs for frequent use.
- Usually limited to urban areas and requires good mobile signal coverage.
5. Summary of Short-Term Car Rental and Car Share Providers in Greater Calgary
- Short-Term Car Rental Providers:
- AVIS Rent-A-Car
- Enterprise Rent-A-Car
- Budget Car Rental
- Hertz
- Car Share Providers:
- Communauto: A popular car sharing service in Calgary, offering a variety of vehicles.
- Turo: A peer-to-peer car sharing platform where you can rent cars from individuals.
6. Explanation of Options at the End of a Long-Term Car Lease
Long-term car leases are agreements signed directly with the financial services or leasing departments of manufacturers. At the end of the lease, the following options are available:
- Option 1: Return the car to Manufacturer or dealer buy back at market price, ending the contract.
- Option 2: Purchase the car at the residual value estimated at the time of the lease agreement or obtain a third-party loan to buy it.
- Option 3: Trade-in at market price or premium with the dealer, then sign a newlease agreement for a new car with Manufacturer.
