Monthly Car Rental or Buying a Used Car: How to Compare Before You Decide
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I need a car, but is it better to buy a used one or choose a monthly rental?
Buying a used car may make more sense if you plan to keep the vehicle for several years. Monthly car rental, on the other hand, may be a better option if you value predictable costs, want to avoid a high upfront investment or are still unsure how long you will need the car.
In this article, we compare buying a used car with one of the solutions available for those looking for monthly car rental: car subscription. Find out which costs and criteria you should consider before making your decision.
How Much Does It Cost per Month to Own a Used Car?
Before considering insurance, servicing or taxes, there is an initial cost to take into account: buying the vehicle itself. Theaverage price of a used car sold by professional dealers in Portugal was €24,300 in January 2026.
This amount can be paid upfront or financed through a car loan. If you choose financing, you should also factor in interest and any other charges associated with the loan.
After the purchase, there are other costs to consider:
- Car insurance: varies depending on the driver, the vehicle and the level of cover selected;
- IUC road tax: depends on the vehicle’s characteristics and registration date;
- Maintenance and servicing: are the owner’s responsibility and tend to become more significant as the vehicle gets older;
- Tyres: need to be replaced according to wear and usage;
- Mandatory periodic inspection: applies according to the age of the vehicle;
- Unexpected repairs: may lead to additional expenses over time;
- Depreciation: refers to the loss of the car’s value over time.
When these costs are added to the monthly finance payment or the capital invested in the purchase, the cost of owning a used car goes far beyond the purchase price.
How Much Does It Cost to Rent a Car per Month?
With monthly car rental through a subscription, you pay a monthly fee that already includes several of the costs associated with using the vehicle, such as insurance, maintenance, servicing, tyres and taxes.
Instead of covering these expenses separately, you can bring several costs together into a single monthly payment and know in advance how much you need to budget for the car.
The subscription price varies according to the model selected and the applicable terms. So, when comparing it with buying a used car, you should consider not only the monthly fee but also the services and costs that are already included.
According to the Drivalia teams, there is one common mistake in this comparison: looking only at the purchase price or monthly finance payment of the used car.
“When someone asks us whether renting is worth it, we always recommend adding up all the costs associated with buying a car, rather than looking only at the purchase price or monthly finance payment. Only then can you make a truly fair comparison.”
Discover 7 reasons to rent a car with a subscription, in this article.
Buying a Used Car or Monthly Rental: What Are the Main Differences?
The comparison should not be based on price alone. Buying and renting involve different levels of commitment, responsibility and predictability.
Buying a used car means becoming the owner of the vehicle. You can keep it for as long as you want, sell it whenever you choose or adapt it to your preferences, but you also take on the costs and risks that come with ownership.
With monthly rental, there is no vehicle purchase. At the end of the contracted period, you can return the car without having to arrange its sale or deal with depreciation.
How to Compare the Cost of Buying and Renting a Car
For a more realistic comparison, do not compare only the monthly finance payment for the used car with the subscription fee.
Car Subscription or Buying Used: Which Is Better?
There is no single answer that works for everyone.
There is no single answer that works for everyone.
Buying may make more sense if you plan to use the same vehicle for several years, value ownership and are prepared to take on maintenance, repair and depreciation costs.
Monthly rental may be more suitable if your need is temporary or uncertain, you prefer to avoid a high upfront investment and value predictable costs.
Before deciding, ask yourself three questions:
- Do you expect to use the same vehicle for several years? This may favour buying;
- Do you value predictable costs and prefer to avoid unexpected maintenance expenses? This may favour renting;
- Do you have enough capital available to buy a vehicle without affecting other financial priorities? If not, renting allows you to avoid a high upfront investment.
Compare Your Options Before Committing to Your Next Car
Buying a used car or choosing a monthly rental involves different costs and responsibilities. The best decision depends mainly on how long you need the vehicle, the total cost of each option and the level of flexibility you are looking for.
If you are still unsure how long you will need the car or prefer a solution that combines several costs into a single monthly payment, a car subscription may be an option worth considering.
With Drivalia, you can check the available models, compare monthly fees and choose a subscription solution that suits your needs.
