Jane E. Fraser

How to DIY car hire January 25, 2010

Looking at transport options for an extended trip around North America, my husband and I came to a simple conclusion: buying a car would be much, much cheaper than renting one. Even if we had to dump it at the end of our six-month trip, we ought to be thousands of dollars in front. Buying a car would also be considerably cheaper than any form of public transport and would give us a great deal more freedom.

What we did:

The short version of what transpired is that we bought a VW Kombi van in Los Angeles, drove it 23,000 kilometres (14,000 miles) around the USA and Canada and sold it near New York – for a profit!

The profit we made on the vehicle covered most of the cost of our insurance and repairs for the trip, meaning we had travelled for six months for not much more than the cost of the petrol. Having our own vehicle meant we were able to travel wherever we wanted, including national parks and out of the way places, and having a campervan saved us a fortune on accommodation, as well as enabling us to stop anywhere that took our fancy.

The headaches:

Of course it wasn’t quite that simple, as it is difficult for a non-resident to buy and insure a car in the United States. We spent hours and hours on the internet, combing through various states’ rules and regulations before we found a way to do it, and there were a few paperwork hiccups along the way. But we deemed the hassle to be worth it for the length of time we were travelling and the freedom and cost savings that having our own vehicle gave us.

Different countries, different rules:

If you want to buy a vehicle to travel around the UK and Europe you will find it a lot easier. There are no restrictions, to the best of my knowledge, on who can buy a vehicle in the UK – all you need is a friend or relative’s address to use – and you can take it on the ferry across to France and travel through Europe. It is also possible to buy a car or campervan in Africa, South America and Australia, and in some places you will even find companies that offer guaranteed buy-back, although the buy-back price is often low.

Pros and cons:

The savings from buying your own vehicle can be huge, but there are a few things to weigh up. One is your confidence in buying, selling and maintaining a vehicle, especially if you are buying on old campervan or something else at the lower end of the market. If you don’t know one end of an engine from the other, you could find yourself stranded in odd places and spending a lot of money on repairs.

Our motoring organisation membership saved us on a few occasions when our battery went flat, as there was a reciprocal arrangement with North American roadside assistance organisations. From California to French Canada, we were able to ring up and get service just as we would at home.

You also need to ask yourself whether you are willing to spend up to a week at either end of the trip finding and then selling a vehicle. Some internet research before you leave on where to find a vehicle can save you a lot of time and give you an idea of prices, but selling it at the other end can involve a bit of luck. We put a sign in the window towards the end of our trip and sold the van easily, but we were prepared to dump it if necessary.

Where to start:

Many cities have unofficial car trading areas, where backpackers buy and sell vehicles, and you can often get one equipped with camping gear and everything else you need. The best way to find out where to go is to ask around or put up notices at youth hostels or backpackers’ accommodation. The internet can also be a great source of information, especially if you tap into travellers’ forums.

And don’t forget to get an international driver’s licence before you go – rules vary from country to country but it is best to have one.

When hiring a car: 

• Does the price include unlimited kilometres?
• Is there a cheaper rate for long term hire?
• Are you allowed to take the vehicle across borders?
• Are you allowed to take the vehicle on dirt roads?
• Can your vehicle double as accommodation?
• Are there extra charges for returning the vehicle to a different depot?

When buying a car:

• Are you confident in buying and selling vehicles?
• Do you have any mechanical skills?
• Have you factored in the cost of insurance and repairs?
• Are you a member of a motoring organisation with reciprocal overseas services?
• Can your vehicle double as accommodation?
• Can you spare up to a week at each end of your trip for buying and selling?

* Please note the above is based on my own experience and things can change. It is essential that you do your own research and your own calculations.

 Copyright Jane E. Fraser