Leasing vs Renting

When it comes to cars, most people know what they like. This could be leather seating, mobile video, iPod compatibility, or simply ample cup holders. It’s obviously to important to find a vehicle with the features you desire, however leasing a car should add an extra dimension to your search. When it comes to services for them there should be car maintenance, fleet management and fleet managementsolutions as well.

Why? Your leasing expenses will be determined by your vehicle’s residual value: how much your dealer expects it to be worth at the end of the lease. No one can predict the future, but it’s still important to factor in the resale values of the vehicles you’re considering.

For example, you should avoid vehicles by companies that have had to order large recalls in recent years. This decreases people’s confidence in the make and will likely result in a lower residual value. Additionally, it’s best to pass up car models that are frequently redesigned. This can also decrease your resale value, as a new design will make your vehicle seem dated. Also now a days lot of car leasing options are available including corporate rental car policy which gives you the privilege of company car

Although we might use the words “lease” and “rent” interchangeably in everyday conversation, car leasing and car renting are actually incredibly different processes. Car rentals are intended for short-term borrowing only, while car leasing deals typically last for 24 months or longer.

Car Leasing options

Some people compare car leasing to apartment leasing, but this can be confusing, since apartment renting and leasing are incredibly similar. It’s better to think of car lease financing as similar to mortgage financing – only instead of money, car leasing companies are loaning you a car.

Just like loan money, you have to “pay back” (or return) your car at the end of the lease. You also have to pay interest on the loan and cover the vehicle’s estimated depreciation in value. This money comes out of your initial deposit and monthly payments. Also companies take care of car maintenance, fleet management providing fleet management solutions and lots of leasing options.

Car Renting options

whereas car lease deals are calculated based on vehicle value, estimated depreciation, interest rate, and lease duration, car rentals are not determined by any one set of factors. Rental prices vary by company and season by formulas not known to the general public.

Because of the unreliable financing, car rentals are best used by travelers or people in need of specific types of cars for short-term use (i.e., a larger car to accommodate multiple family members). If you’re looking to borrow a car for an extended period of time, cars leasing is really the way to go.

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