PCO Car Rental vs. Rent to Buy—Which One is Better and Why in 2024?

If you’re thinking of starting your journey as a PCO driver, you first need to figure out the vehicle. While buying a car is one of the most preferred options in the long run, it requires a significant upfront cost. If you don’t have capital, you have other options like PCO car rental or a rent-to-buy scheme.

Rideshare drivers put tons of miles on their vehicles while working, and they find car rentals to be the most effective options. When you opt for a rent-to-buy scheme, all the miles you put on your car increase the wear and tear of a vehicle you own after some time. To help you make the best decision, we have compared both options and explained which one will be better for you—keep reading.

Rent to Buy for PCO Driving

Rent-to-buy or rent-to-own schemes are becoming popular, and you may be aware of the hype around them. They are great for people looking to own a car but don’t have enough upfront capital.

Unlike a rental car, a rent-to-buy vehicle is offered to drivers under a specific contract. A portion of your rent will go toward the car purchase, and you will own it once you’ve paid the full amount. You also have to make a down payment to secure a rent-to-buy vehicle and then make regular payments on it. Depending on your car provider, you will have to make weekly or bi-weekly payments. Besides the down payment, you also need to provide your credit history, proof of income, ID, and residential details.

Here’s Why Rent-to-Buy Car May Not Be a Good Option

Most people find rent-to-buy cars more attractive as there are no credit score requirements or interest fees, but they fail to recognise many issues that come with them.

Wear and Tear

Rent-to-own car schemes can be beneficial for most people, but there’s a major disadvantage for PCO drivers. As mentioned before, you put tons of miles in your PCO car when working as a rideshare driver. Driving 6–8 hours every day in extreme weather conditions and high traffic areas significantly strains your vehicle—not to forget hundreds of passengers getting in and out of your car. This depreciates the value of your car, but you’re paying the price of a brand-new vehicle (and even more than that). So, in the long run, rent-to-own cars can be less profitable for most PCO car drivers.

You’re Paying More Money

Rent-to-own schemes may seem cost-effective, but it’s more expensive than renting a car or buying one. A rent-to-own contract requires you to pay a monthly fee for renting the car and payments for the purchase. As a result, you’re spending significantly more money than the car’s actual worth.

Although you’re not paying interest, your weekly payments add up to a larger sum (more than the car’s value) once you own the car. Moreover, if the rent-to-own vehicle decreases in value over the course of your agreement, you will still have to pay the higher price in your contract.

It Doesn’t Include a Warranty

Rent-to-buy contracts don’t include warranties, so if your car sustains damage while you’re using it, you won’t have any protection for it. You’ll have to manage the repair expenses yourself.

The Company Can Repossess the Car

If you fail to make payments, your car provider will repossess the car. Some companies repossess the vehicle within a week of you defaulting. That’s not all; if your car is repossessed (or you terminate the contract yourself), you will lose all the money you have paid so far, including your deposit and monthly instalments.

PCO Car Rentals

PCO car rentals are much more straightforward and hassle-free. These require a security deposit and weekly rent for the car. Renting a PCO car in London is much more beneficial because of its short-term contract. In the rideshare industry, most drivers offer these services as a side gig, whereas others are here on a temporary need basis. Renting a car doesn’t bind you to a long-term financial commitment.

Moreover, if you rent from reliable companies like G&M Direct Hire, you don’t have to worry about maintenance costs, licence, insurance, and many other hassles because we take care of it all.

Benefits of PCO Car Rentals

No Licence Expense or Hassle

In addition to getting a PHV driver’s licence (PCO licence), you also need to obtain a license for your vehicle to be able to drive on London roads. Transport for London will evaluate your car against the standards and then provide their approval. This process is time-consuming and expensive.

On the other hand, when you rent a car from us, it will be already licenced. You just need a PCO licence, and you’ll be on the road, earning money in just a few days.

No Servicing or Maintenance Expenses

One of the biggest expenses of driving a PCO car is its maintenance and repair. Due to the increased wear of the car, it requires frequent garage trips and incurs hefty bills. As a result, you are left with less profit. However, renting a PCO car liberates you from these frequent expenses.

Our priority is to provide well-maintained vehicles to all our drivers so they can offer exceptional services to their passengers. Therefore, we take care of all major servicing, including car fluids and tyre changes, repairs, light replacements, etc. You just have to do basic cleaning, such as dusting the carpet, cleaning the seats or wiping the windows. Having this convenience will save you not only time but also hundreds of pounds in annual operational costs.

Another essential requirement for PCO cars in London is passing the MOT test. You’re required to take this test every three years, and it inspects your car thoroughly. It involves checking the brakes, windscreen wipers, fuel systems, exhaust systems, seatbelts, lights, and mirrors. We make sure that all our PCO cars are in excellent condition to pass this test in one go, and we also take care of the costs. This means less stress and expenses for you. You Get to Drive Different Vehicles

One major advantage of PCO car hire is that you can swap your existing car with another one. This can help you impress your passengers and get more ride requests; as a result, you can earn more. For example, you rent an affordable car like Toyota Prius from us at first and start earning.

Once you have enough budget, you can rent a better and more efficient car like the brand-new Kia Niro EV 2022. As a fully electric car, it will help you avoid Congestion and ULEZ charges and leave a positive impression on your passengers.

On the other hand, with rent-to-buy schemes, you are stuck with the car you chose initially. This can be risky, considering the ever-changing requirements of TfL.

Short-Term Contract

Most PCO car rental companies have long-term contracts, causing inconvenience for drivers. But at G&M Direct Hire, our minimum car hire contract lasts four weeks. You can return the car after this period and get a full deposit refund or renew your contract. However, if you wish to return your car in the middle of a week with the rent paid, we will do a partial refund for the days left.

As a result, you have more security over your payments.

Access to Modern Vehicles

Rent-to-buy contracts can last for multiple years, and by that time, your car will have run its course. PCO car rental gives you access to the latest models from the leading manufacturers. New cars offer the best performance, good range, and multiple safety features. There are fewer chances of breakdowns or hefty repairs. Driving a new car would reduce your exhaustion and offer a seamless journey to your passengers.

Moreover, you don’t have to worry about depreciation, insurance and licence, renewal, and other hassles.

Accident Coverage

Accidents are inevitable in this line of work, but having reliable coverage can make things easier for you. Let’s suppose you met an accident while driving a car rented from us. In that case, we will guide you on how to navigate this situation with complete support. Our team will bring in our solicitors and insurance company if needed.

In addition, if your car sustains significant damage, you can get a replacement vehicle from us. This helps you continue your business without interruptions.

Rent Luxury PCO Cars at G&M Direct Hire Now that you know that renting a PCO car is more convenient for rideshare services, it’s time to get the vehicle you need. At G&M Direct Hire, we have a wide range of brand-new vehicles available at the lowest rental packages. We can help you find a car that will suit your needs and budget. We also have many rent-to-buy options for electric PCO cars, including Kia e-Niro, Volkswagen ID3, Mustang Mach-E, Nissan Leaf, and MG5 Exclusive. Or you can get hybrid cars like Toyota Prius Plug-in or Prius Plus. Contact us for more details.