The straight and simple answer to this extremely tricky question is a big YES!
Renting a car is always more cost effective than buying a new one because you are able to save on the huge investment that you actually make on buying an asset that depreciates with time. If we are to talk in a strictly financial language then it is never wise to buy assets that depreciate in value; however, it is always good to buy assets like property and shares that increase in value.
It is really hard to not fall prey to the temptation of buying your own car, especially when you are unable to hail a taxi during the rush hours. If you are able to actually count the number of days in a year when you felt the need of a car real badly then you will be surprised to find that it is not more than 10 to 15 days in a year. Do you really need to buy a car that you will need only 15 days in a year? No logic behind buying a car exists unless you have a lot of extra money to waste on assets that depreciates in value over time.
According to the statistics, a new car depreciates by 40% of its list price in the very first year itself. By the end of the third year, the value drops by 60% of the list price and this keeps falling till your car is valued not more than junk iron sheets. Why do you want to waste your money investing on something that really does not add any value to your life?
Buying a car is probably the dumbest idea and an absolute waste of money when you have many other options. Renting a car can save you hundreds of dollars a month and you can go step further to even get a car on lease. Both these make a lot of sense than just blindly buying a car. Lease is a long term rental deal that lets you drive a car for a fixed monthly price. In the US, people are more into driving around in the latest models than actually buying them. Now, there isn’t a better deal than renting the car and driving to wherever they wish.
Renting or leasing a car does not make you the owner of the car but you definitely save hundreds of dollars while driving some of the latest models on the road.