To save one from the financial hassles of owning their very own car. Many opt for leasing or renting a vehicle from established agencies such as Speedy Drive Car Rental, among others. For many people leasing and renting may sound the same – You get to use any car you desire as your own for a limited time.
However, if you are considering either of the options, there are vital factors that differentiate leasing and renting differently. Of course, either way, you can choose from a wide range of modern well-serviced cars to lease or to rent depending on one’s budget. Here is a guide to help you understand the difference.
How Long Do You Want to Keep the Car?
One thing that stands out upon inquiry on the difference between a car lease and a car rental is the time frame. If you are considering keeping a car for a longer-term period like say three-plus years, then a car lease is what you should take into consideration. However, if you are, on the other hand, considering utilizing a car for a day, weeks, or even months, then a car rental is ideal for you.
Do You Intent to Own the Car?
When you opt to rent a car, there is no option that the car will be yours at any given point. However, if you intend to own the car, then you should go for lease to own option. Generally, there will be a deposit as an upfront consideration, a monthly charge, and a further amount to be disbursed at the end of the lease. In contrast, a car rental requires no deposit but rather a fixed amount for the duration of the use.
Consider the Provider
While a car rental company will provide you with a car to rent, not all will offer the option to lease a vehicle for a more extended period running to 3 plus years. It is because leasing is limited to well-established car leasing companies owning a considerable fleet of cars readily available for rent, lease, or sale. Many providers target clients on holidays and rarely incorporate leasing for the long term as part of their business. Also, be on the lookout for penalties in case you surpass the agreed mileage.
It is important to note that when leasing a car, the client is required to pay for the car’s insurance. Whereas, on the other hand, renting one means the provider has catered to insure the car. However, this is an option as other agencies provide full cover for the vehicle so that in case of damages, the insurance company will cover the same. Before leasing a car, it is advised to look at the fine print in terms of insurance options.