Difference Between Renting a Car vs Leasing a Car

Leasing a car lies more or less on the same line as buying a car on loans, while renting a car is a short-term commitment after which you return the vehicle and then rent it another day the next time you need one. But a lot of people still confuse the two things despite their obvious differences. In this blog, you can learn the differences between renting a car and leasing a car.

Terms of Contract

Car leasing is better suited for longer durations, during which time you treat the car as your own personal vehicle. Rental plans, on the other hand, are much suited for shorter durations. Although you can still rent cars for a long period, e.g. if you’re visiting a new city and intend to stay there for only a few weeks, a long-term car rental may be more convenient for you than leasing one. But if you’re going to stay there for a long time period, e.g. a few months, then leasing is the better option.

Moreover, you can’t change the kind of vehicle you lease very frequently, whereas car rentals allow you with the option to rent a car that fits your requirements, e.g. at Deinfa Motors, you can rent any car from economic options to SUVs to commercial vehicles based on your needs.


The difference between leasing or renting a car also lies in the ownership factor, in that a leased vehicle implies that at some point, you will gain complete ownership of it. Whereas while renting a car, the ownership belongs to the rental company, and you can’t keep a rented vehicle with you after the time period agreed by both you and the rental company in your contract, while you also have the benefit of choosing to be driven by a company-licensed chauffeur on your trips. Although in both cases, leasing or renting, if you cause any damages to the car, you’ll have to pay them in full.

Insurance Requirements

Insurance policies differ from company to company, but while it’s obligatory for leased vehicles, rental companies may allow you the option to not pay for insurance. Most vehicle lease dealers might require you to carry full coverage to protect the car’s value, whereas rental companies may ask you to buy insurance for a certain amount to cover minimum damages that might occur from the time you use the vehicle to the time you return it.

Period of Usage

One of the major differences between leasing and renting cars is the time frame of its use. Leasing a car is a long-term commitment, where you get to use it as your own personal vehicle; it works like having loaned your personal car. Whereas the time frame of rented vehicles may vary from short-term to long-term, with a more narrow commitment and a strict policy of returning them. You can either rent a car for 1-2 months or take it out for 2-3 days, depending on your needs.

Type of Providers

Car dealerships usually provide vehicle leases, whereas car rental companies, like Deinfa Motors, deal with vehicle rents. While the former also deals with the business of selling cars, the latter exists for the sole purpose of renting different kinds of vehicles on a long-term or short-term basis.
These were all the basic differences you should know when it comes to leasing a car vs renting a car. If you’re looking for more information on car rentals, you can visit Deinfa Motors for your queries.

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