Twice a week, our CEO and resident money guru Jean Chatzky tackles your burning questions in the HerMoney newsletter. We’ve pulled some of the best to feature on our website — and this one made the cut! Got a question for Jean? Send it her way right here.
Q: Today’s question comes from Wendy. She writes: “Our daughter just got her license and she will only need a car for a year before heading to college. Once she goes, the vehicle will sit in our driveway for a year, since our son is too young to drive. Is there a way to purchase or rent a car for a short amount of time? What is our best option?”
A: Having a new driver in the house is exciting…not to mention a little nerve-wracking and costly (but mainly exciting!). With your situation, you have a few options, some of which I think are better than others:
Short-term lease: Many car dealerships offer short-term leases that can range from 12-24 months. Personally, I’m not crazy about putting a freshly minted driver behind the wheel of a new vehicle, but you might think otherwise. The upside to this is that you’ll have a warranty, and likely little to no maintenance issues.
Long-term rental: Certain rental car companies offer these, which can run anywhere from several months to a year. This will be more expensive than leasing, but you’ll have a bit more flexibility and likely save on insurance costs. In the realm of long-term rentals are car subscription services, which have gained a bit of popularity in recent years. For your purposes, though, I don’t think one would be cost-effective.
A certified pre-owned lease: This, I think, is one of your better options. Some dealerships offer these types of leases, which are typically shorter than those for new vehicles and offer many of the same benefits (like warranty coverage).
Buying a used car: Another one of the better options, IMO. If you can find a used car at a reasonable price that holds its value, you can resell it once your daughter heads off to college without a significant loss (as long as no repairs are needed).
Car-sharing: ICYMI, we’re in a “sharing economy.” Platforms like Turo allow people to rent out their personal vehicles, much like someone would rent out their home via Airbnb or Vrbo. It’s probably a long shot, but you could potentially find someone offering a long-term rental on Turo. If you go this route, make sure to read the fine print and confirm the rental terms are agreeable.
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