Car Leasing Vs Car Renting

A lot of confusion surrounds car leasing and renting. Hopefully by the end of this article, you will have a much better understanding on the difference of these concepts.

First off, renting lets people use a car for a short period. The rates are determined by a rental company and can range from daily to weekly charges. On the other hand, leasing is a financing option. This lets people drive and pay for a car that they want much like a loan.

Renting is relatively easier than leasing. Credit ratings, income and debt are all examined before being able to lease a vehicle. This often reflects on your credit report. Renting meanwhile is not much fickle when it comes to customers.

A rented car is easier to return and replace than a leased one. Certain terms often prevents a lessee to return the vehicle especially without penalties. A lease contract is also long-term and more difficult to opt out than a rent.

Car rental companies do not have much variety in the cars that they offer than car leasing companies. Your choice of rented cars is much more limited.