Differences between Renting and Leasing a Car

Everyone knows that it is very expensive to own a car. As an alternative to buying a car, you could lease a car or rent a car which is a better option. The major difference between leasing and renting a car is the time duration. Renting a car can be done for a couple of days while leasing a car involves making monthly payments for months or years depending upon the contract.

If you are a person who needs a car for a longer duration, then leasing a car in Dubai is a better option rather buying a new one? This saves a lot of money and also the additional maintenance, insurance, and loan. A wide range of options is available if you want to lease a car. Hence, valid documentation is essential when you want to lease or rent a car in UAE. Here are some difference between renting and leasing a car in Dubai: 

1. Ownership: The difference between renting and leasing a car is ownership. When you buy a car, you own it but when you lease a car you are renting it for a longer duration. It is advised to lease a car instead of renting because leasing will have some kind of ownership. While renting a vehicle is a relatively simple process, there is no provision to own the vehicle at the end of the contract period.
2. The contract terms are different: The contract for renting and leasing a car is different. Rental plans are for the shorter time frame and car lease is for a longer time frame. If you are in Dubai on a short trip then it is advisable to rent a car. Most people do not want to buy a car so they prefer to lease a car without really having to worry about the cost associated when you own a car.
3. The insurance requirements may differ: Insurance policies differ depending on the company. Most of the rental companies recommend that you opt for insurance cover because, in case of any emergency or accident, you are covered without any unexpected expenses. For rental, the company offers cars with insurance. It is more convenient because people who are on a visit have no idea how to get insurance in Dubai.
4. Payments : The way we make payments to the rental company is also different. Many customers choose to lease a car because the monthly payments are approximately lower than renting a car for a shorter period. So in a rental agreement, you pay the entire amount to use the vehicle but when you lease you pay a lumpsum initial amount so that you are allowed to use the car.
5. Mileage: Leases come up with a mileage limit as part of the agreement. So when you return the car you need to meet the predetermined mileage limit or below it or else if you exceed you might be charged an overage fee. So always keep in mind when you plan for longer trips.
6. Wear and Tear / Maintenance: If you are a person who drives roughly then leasing may not be a great option. When you lease a car, it will be for a longer duration but the dealer will then try to sell the car. So if you return the car in poor condition then you will have to pay extra.

Autobahn is one of the leading players providing the best services of car rental in the UAE for Locals and tourists. We have all kinds of well-maintained vehicles to suit the needs of our esteemed customers, from affordable and comfortable hatchbacks to luxurious and premium sedans and SUVs.