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Leased VS. Rented Vehicles

25 September 2021

Although they may sound the same, there are several notable differences between vehicles for rent and vehicles for lease. Leased vehicles and rented vehicles have different uses and should be viewed differently from the other.

The only similarity between leased and rented vehicles is that you are paying to use a vehicle that is already owned by another, whether it be another person or by a company.

The notable differences between leased and rented vehicles include the following:


1. Time Frame Commitment

A vehicle lease agreement, at minimum, usually lasts for 12 months; with the majority of vehicle leases lasting between 12-48 months (1-4 years). A vehicle for rent, however, is usually only for a few days and normally does not last more than 30 days.

The time period is different because a leased vehicle is usually proposed to be used in the same way a purchased vehicle would be used for household and personal use. A rented vehicle, on the other hand, usually has limited use in a vacation or road trip setting.


2. Car Insurance

Since a leased vehicle is normally used in the same way a household personal vehicle is used, and for a long period of time, car insurance is required. Rented vehicles, however, are only used for a short period of time. Therefore, minimal liability insurance is optional for rented vehicles. The rental vehicle agency will charge a small daily fee for the liability insurance that does not compare to the expensive car insurance policy premium for leased vehicles.


3. Available Options

There are more vehicle selection options for lease than to rent. The rental vehicle provider, typically an agency, is limited to the vehicles they have available at the time of your need. Vehicle dealerships, which typically provide vehicles for lease, however, provide more luxurious vehicle options for selection. Lease vehicle selections are able to be customised with special features to your particular needs.


4. Ownership Option

Some vehicle lease agreements will include the option for the person leasing the vehicle to own the vehicle at the end of the lease period. Rental vehicle agreements do not include such an option and the vehicle must be returned at the date and time specified in the agreement contract to the provider where the vehicle was rented.

The decision to lease or rent a vehicle is largely dependent on the purpose you need the vehicle for. If you need a vehicle for a short period of time, for example, to make a road trip, in a short-term emergency event (primary vehicle repairs) or on vacation, the better choice is to rent a vehicle. If you are in the market to purchase a new vehicle but want to test certain vehicles to see how they fit your needs, you should consider leasing that vehicle over renting.


Whether you need to rent or lease a vehicle, contact Hin Lung Auto today. Hin Lung Auto is ready to help you with your lease and rental vehicle needs.

Call our Customer Care now at: +65 6472 2222.

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