Sometimes owning a car outright isn’t a viable option, which is where renting and leasing a car comes in to play. But with some subtle, and not so subtle differences between the two types of car ownership, it’s worth weighing up the pros and cons for both.
Needed For The Long-term
Most lease agreements are two or three years long, with no pressure to buy at the end of the agreement – making them the most viable option for those looking for a car for the long-term. Renting, on the other hand, tends to be on a more short-term basis. This might suit you if you are out of the country for long periods for example or infrequently require a car.
Think About Your Finances
If you’re on a tighter budget, renting can help you manage this. If you have a period coming up where you know the money will be tight, you can return the rental and re-rent another car when you can afford it. However, leasing a car on hire purchase means at the end of the agreement you will have an asset that you can either keep, sell or upgrade to a newer model and continue leasing.
Enjoy Driving the Latest Model
If you enjoy driving the latest high spec model, leasing affords you the opportunity to change your car every few years. However, if you’re looking for a wider range of vehicles, rental agencies tend to have an increased range of vehicles available compared to car dealerships who lease cars.
Driving Long Distances
If you drive long distances for work or leisure leasing might not be an option with certain providers who limit mileage to under 30,000 miles per annum. If you think you might exceed this number and are unable to renegotiate the lease contract, and you have exhausted other financial avenues, then renting might be the only solution for you.
Paying for Insurance
If you’ve only accounted for the actual lease amount, it may come as a surprise when you have to pay extra for car insurance. Whereas, when you rent a vehicle, insurance is normally included, with the option to add on a more comprehensive policy. However, it’s worth remembering that unlike leasing, after the outlay of renting a vehicle, you don’t own an asset.
With over 1.6 million people now leasing a car in the UK, leasing is proving to be a popular option. Whether you choose to rent or lease a vehicle, it’s worth weighing up all the options and finding one that best suits your needs and budget.