The decision to either rent or lease a car rests solely with you because no one knows your requirements and circumstances better than yourself. No matter which decision you make, car maintenance will remain a huge expense on your budget list. There are options available in the market for short term rental, long term rental, short term car lease and long term car lease. If you are staying abroad or at a new workplace away from home, car rental and leasing might be better options than buying a new car. Following are the points you can compare between leasing and renting a car before you come to a decision.
Rental Pros and Cons
If you don’t want to be tied to a fixed leasing contract then car rental is your way to go. A long term or short term car rental depends upon the duration of your use. Keep in mind that long term rentals also come with a maximum number of days you can rent for.
You can drive a new model car that you always wanted to own. If you want to change the model mid-way through your deal, you can easily do so. Car rentals have flexibility which allows you to choose for how short or long period you want to rent the car for. If you face any issues with the car, customer service usually takes care of it.
If you intend to rent for a longer duration, you might end up paying more than if you had leased a car. You also might end up getting charged for damage that you didn’t cause and was already present before you rented the car.
To rent a car you will need the following:
It is comparatively easier to rent a car than to lease one.
- Your driver’s license
- Your credit card
Leasing Pros and Cons
Leasing a car is typically ideal if you want to keep it for longer than a period of two years or if you intend to keep it at the end of your contract. Leasing can be either short term or long term. However, it is very difficult to find dealerships that offer short term leasing because it is more expensive for the clients and hence there is no market for it. Long term leases extend to a period of up to 4 years.
This can be more cost-effective for you if you want to keep the car for longer than a year. Also if you are satisfied with the model you have chosen and you think you might end up keeping it, it’s better to lease than rent.
Every month you will pay a big amount that goes to the dealership which is not flexible. You will also end up paying interest on your vehicle. The full term of your contract will have to be completed and you won’t be able to stop your lease midway if you don’t need your car anymore. You will most likely have to make the full payment that was mentioned in your lease. It might also be difficult to keep the mileage limit in check if you drive a lot.
To lease a car you will need the following:
- Proof of income
- Driver’s licence
- Auto Insurance
- A good credit score
Considering all the factors listed above, no one knows better than you which option is best for you. We hope that by analyzing these points, you can come to the best possible decision.