Leasing and renting a car may seem similar to each other but these tow concepts are totally different from each other. Sure, both of them refer to you paying the right to use a car owned by an agency or a dealership but this is just where their similarity ends. Car leasing and renting have distinct characteristics and choosing between these two options greatly depends on your needs. Whether you’re interested or confused in what these concepts really mean, here’s how they differ from each other.
Duration of Use
One of the major differences between a lease and rental is the time duration in using the car. Car lease basically refers to a long term commitment. You can use a leased car as a regular vehicle to drive to your workplace or any personal use. In this case, you’ll continue paying for the lease for as long as you’re still using the vehicle or you decided to rent another one or even buy your own. On the other hand, rentals are only good for few days to a few weeks such as vacations and special events.
Another difference these two have is where they come from. Rental vehicles usually come from car rental agencies. Their main goal is to own more cars and send them out to be rented by other people. On the other hand, leased ones usually come from car dealerships. They typically sell cars but also offer an alternative just in case you’re budget is not enough to get a new vehicle.
Ownership potential is also one main difference that leased cars have over rentals. After a contract, you can opt to buy the car you’ve been using for a long time. You can never own a vehicle after just renting it for a few days. You just keep paying for the car’s rent until you are one using it.
For leased vehicles, car insurance is definitely necessary since you’ll be using it for a longer time. Car insurance can cover collisions or any event that could damage the vehicle. With this, you’ll be more determined in taking care and protecting the car you leased. On the other hand, it is not that necessary to get insurance if you’re only renting a car for a few days. As long as you’re doing your best to protect the car, there’s no need to worry about damages and repair expenses.
Benefits of Leasing a Car
One of the main benefits of leasing rather than buying a car is its low start-up cost. Most companies don’t ask for down payment or sales tax. As long as you can afford the monthly payment, you can enjoy the comfort of driving a vehicle on your own. You can also change from one model to another, giving you the pleasure of experiencing a different car after every few months or years.
Knowing your needs and preferences helps a lot in choosing which among the two options will work for you best. Take your time in weighing the options to make the best decision for yourself.