Five Key Difference Between Leased and Rented Vehicles

One of the primary factors that one needs to consider while choosing between a lease or rental plan is the time frame. Is your use for the vehicle a short-term one or a long-term one? The next key difference between the two is the type of service provider. As for car leasing Dubai, they are usually offered by car dealerships while specialized rental agencies provide rental car plans. The most significant difference between both of these options is that one can own the car at the end of the lease agreement while you do not have the same ability with rental arrangements.

Time Frame

Lease agreements are long term whereas motor vehicle rentals are short-term. Car hire UAE Dubai companies, in particular, are preferred by people who need their cars for a short period which can either be a day, week, or a month. It is generally advised to rent one if you are on a vacation or business trip. But if you want a long-term solution, you’d opt to lease a vehicle. Secondly, leasing a car is a much cheaper option than hiring it on a day-to-day basis.

Type of Provider

Another difference between a leased vehicle and a rented one is that the former generally comes from a car dealership, whereas a car rental agency renders the latter. In most instances, merchants who lease vehicles more often than not sell cars as well. Most car rental agencies do not provide their customers with an option to buy a car at the end of the term.

Vehicle Ownership

As highlighted above, when the lease comes to an end, the lessee (the party that leases the car) may be entitled to purchase the vehicle by paying a residual amount. However, there is no such offer in a motor vehicle rental agreement.

Insurance Requirements

With rental cars, insurance coverage is usually offered with most packages only covering damages, thefts, and accidents. For additional protection, customers have to pay for supplemental liability insurance to cover personal accidents and injuries to personnel. It will also include the loss incurred due to the theft of your possessions placed within the vehicle. With leased cars, insurance coverage is not an option but is a mandatory requirement.

Maintenance

When you choose to lease a vehicle like Mazda Dubai, you are required to bear its maintenance responsibilities. After all, a lease agreement is a contract made between the lessee (user) and the lessor(owner) for the use of the vehicle. When it comes to car rentals, most agencies cover maintenance as well as insurance charges for the car.