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Car Rental VS. Car Lease – Which is best for you?

Car Rental VS. Car Lease - Which is best for you?
Written by John

Everyone desires to own a car for traveling to long or short distances. Vehicles have become a necessity of life particularly in areas having no access to public transport. Many professional vehicle companies are offering car lease services and automobiles on rent to facilitate customers.

Though some vehicles are too expensive to buy, still you can enjoy driving in your favorite vehicle. Not only tourists but residents of Dubai also lease or rent a vehicle from any cheap car rental company.

Is renting different from leasing a car?

Yes, there is a difference in automobile lease and renting a vehicle. These two services can be availed of by contacting any vehicles company of Dubai with a difference of charges and duration.

Do you want to lease a car? How much is the rental price of a vehicle per day? To lease or rent an automobile, some contracts should be made by you. For budget-friendly services, see an automobiles’ company at fewer charges here.

Car renting

Some people prefer new model motorcars on rent in the UAE on a daily, weekly, or monthly basis. Renting a vehicle can relieve your many problems such as registration, insurance, service, and maintenance. Renting a vehicle for a long time is often more costly than buying a vehicle.

Tourists usually rent a car to explore every area during their stay in Dubai. In case of any damage, recovery charges are deducted from the deposit amount. The monthly rental cost is more than buying a car in installments. You will have to pay additional charges per kilometer if you travel more than distance restriction.

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Pros of renting a car

  • You can easily change your rented car with a new one.
  • You do not have to worry about the registration and insurance fee of an automobile.
  • You can receive your rented vehicle on your doorstep in approximately no delivery charges.

Cons of renting a car

  • Automobiles on rent demand more care to protect them from even single small damage.
  • Rented automobiles will not be in your personal assets even after paying more charges then buying.

Car Leasing

When a car rental exceeds 12 months, it becomes a lease. Leasing an automobile is highly efficient for residents due to its long-lasting and cost-efficient service. Car lease contracts are generally cheaper than monthly rental prices.

While vehicle leasing, a contract is signed with an area restriction. If you drive your leased automobile out of a restricted area, you are obliged to pay extra charges. Residents as well as commercial travelers, who are foreign for an annual or perennial project, can enjoy the facility of leased services.

Pros of car leasing

  • Leased vehicles are cost-efficient as the automobile leasing charges are less than automobile renting.
  • Free delivery will be provided to you after leasing a car.
  • You will not bear any pressure on charges of car maintenance, registration, and routine services.
  • If you lease a car up to 3 years from an automobile brand, you will enjoy as many benefits as an automobile owner can.

Cons of car leasing

  • Mileage limits are difficult to follow if you travel a lot.
  • Monthly charges will be paid to the automobile vehicle company during your leased duration.
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Difference between rented and leased automobiles

Many people rent an automobile even on a daily basis but not go for an automobile lease. This may be because of unawareness of the advantages of leasing a vehicle.

As you can enjoy driving a car in both cases, so the question is what is the difference between these two? Some major differences between leased vehicles and a rental car are using duration and insurance requirements.

Time period

The main difference between renting and leasing a vehicle is the duration of usage. Automobile leasing is a long term commitment that ensures the regular usage of a vehicle for your personal purposes. You will continue to pay the lease of the car until you buy it or lease another one.

Conversely, renting an automobile is a short term contract. Some people rent an automobile for vacations and tours of a week, fortnight or month. Car rental services of one or two days are more common.

Insurance requirements

Insurance is required on car leasing while insurance of a rental automobile is up to your choice. In many counties, you will bear a minimum of liability insurance on any vehicle you drive whether it is your personal, rented, or leased.

The full coverage insurance is demanded by dealers who lease vehicles to protect the car from a collision and to ensure its security. However, there is optional insurance of 9$ to 30$ per day in case of rental vehicles.

Provider Type and Ownership Potential

Leased cars are usually provided by dealers while vehicles are rented from car rental agencies. Dealers of car leasing also sell automobiles. The vehicle leasing is basically a modern form of traditional financed purchasing.

Car leasers have a possibility of ownership at the end of the lease while car renters have no ownership potential. Leasing a vehicle is referred to as “lease to own deal” in some states. You can own a vehicle any time by paying enough and stopping the lease. Renters don’t enjoy such luxuries as they can use a car for a specific time by paying.

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Should I lease or rent a car? Which is best?

Firstly, you should check how much time you need a car. If you often need a car, you should go for leasing a car because it will be cost-efficient and time-saving. You will not have to waste time booking a vehicle many times a month. Moreover, there is a chance that you may miss your favorite vehicle if it is already on rent.

On the other hand, if you only drive on the weekends or twice a month, you are suggested to rent a car. Because it’s not wise to pay liabilities and insurance charges for a car to be used so rarely.

Therefore, leasing a car is different from renting. Decide what kind of services you need and book your favorite car.

About the author

John

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