Difference Between Car Leasing and Renting Muncie IN
Fort, Wayne, IN
Terre Haute, IN
Difference Between Car Leasing and Renting
Many automotive consumers assume that car renting and car leasing are the same thing, or are very similar.
This misconception may come about from the fact that apartment renting – which is very familiar to most people – and apartment leasing are essentially the same thing.
It is therefore natural for someone not familiar with car leasing to assume that it is much like apartment renting or leasing.
It is not.
What is car renting?
Car rental companies exist to fulfill the short-term automobile use needs of traveling business people, vacationers, or those who might need a particular type of vehicle for temporary use.
Rental cars are owned by a rental company and are made available to customers for relatively short-term use. The company maintains and services its vehicles and carries basic insurance. Customers agree to not damage the vehicle, to buy gas, to purchase additional insurance if personal auto insurance is not applicable, and to return the vehicle within a specified time. All maintenance is handled by the rental company.
Rent rates are determined by the car rental company, based on a daily or weekly fee, and includes either unlimited mileage or an additional mileage rate. The method by which rates are determined is not revealed to customers and can vary widely, even within the same rental company, based on various discount schemes.
Rental companies make money by renting the same car over and...