On the surface, leasing and renting are often interpreted as meaning the same thing. However, when it comes to vehicles, the terms are indeed very different and often leave people confused as to which is most suitable for them.
It’s just a matter of time
One of the first major differences between leasing and renting is timescale – leasing tends to occur over a number of years, whilst renting cars is usually for the short term, e.g. just a few days or weeks.
Secondly, cars tend to be leased by dealerships, whereas you’d rent a car from a specialist vehicle rental agency. In both cases, ownership of the car remains with the dealership or agency, but with leasing there is usually an intention for the customer to own the vehicle at the end of the lease.
Let’s talk finance
Car dealerships often use leasing as a form of finance, i.e. the customer pays a monthly fee for the car over a number of years, and sometimes pays a lump sum at the end in order to fully own the vehicle. This is very different to renting, where payments are made solely for the use of the car over the designated period.
So if you’re looking for a new car at home for long term use and with the potential to buy, you would lease and make monthly payments towards the overall cost of the vehicle. Whereas, If you’re going on holiday for a couple of weeks and need a car to get around, then vehicle renting is the option you would use.
We hope this has helped clear up an often confusing situation.