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Differences between leasing and renting

Differences between leasing and renting:

Today buying a vehicle in the traditional way is not the only solution to acquire one of these means of transport. On the contrary, there are various financial possibilities such as leasing and renting that allow a person or a company to obtain a vehicle in a more beneficial way. Both have the same facility for long-term rental of this type of property. Today we will explain the main differences that exist between these financial alternatives. That can affect or benefit people or companies.

Leasing

At first, leasing is law provides financial contract . In which there is a choice to buy when offer is near to end. In this procedure there is the opportunity to transfer the risks and benefits of the property. Credit institution can establish it.

A fundamental aspect of leasing is that it can be carried out in operations that refer to assets that are used in any economic activity, of natural or legal persons. In general, the contract for this financial process can be extended from two to six years.

Another interesting fact aboutt this type of contract is that it requires the right to purchase . This allows that, at the end of the agreement, the individual can make a decision. Company defines if he wants to buy the vehicle or not.  In the event that they do not decide to make the purchase. The person entitled to request an extension. Either to change the vehicle or formulate a new contract.

Renting

On the other hand, renting is a financial resource that differs from leasing. Both individuals and companies require it. Likewise, in this procedure the owner does not have the option of final acquisition of the vehicle.

This is long-term Lease. The company that is in charge of offering this contract has the obligation to provide services to the vehicle. Another main difference is that the person who decides to carry out this alternative agrees to pay a monthly fee. Renting company attributes the property.

The duration of the contract is from one to six years and there is no legal limitation. Similarly, renting covers services such as taxes, registration, tires, vehicle maintenance, among other aspects.

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