What are the differences between renting and car leasing

At first, we can think that renting and leasing are two synonymous concepts to refer to form access to the ownership of a car, passing before a rental period. But the truth is that they are two modalities with wide differences in terms of their objective, their nature and their tax treatment. In .com we explain all the details so you know what are the differences between renting and car leasing .

Nature

The renting is a rent and, although it can end up in purchase, that is not its objective.
Leasing is a way of financing the car and, as such, must be subscribed with a financial institution.

goals

As we already pointed out, the renting functionality is rent, the payment of fees in exchange for the use of the vehicle . Therefore, the purchase option is not something that is stipulated from the beginning, although it can be given.
On the other hand, in leasing this option to purchase is a key point of the contract and is present from the start.

Services

The renting is much more comfortable in the sense that we do not have to worry about aspects as cumbersome and expensive as the maintenance of the car, the repair of breakdowns or the purchase of insurance.
In the case of leasing, our role is similar to that of the owner, so we have to deal with all the aspects mentioned.

Taxation

The renting is attractive from the fiscal point of view since you can deduct the fees and 50% of the VAT.
However, leasing is treated as a financial product.

Deadlines

In renting there are no minimum or maximum pre-fixed terms and these are the result of the agreement reached in each of the contracts.
In leasing, as a mean, a duration of at least two years is established.

Resolution

At the end of the renting, we can terminate the contract or change the car for a new one.
In leasing, we can buy the car, deliver it or lengthen the contract.