A lot of confusion surrounds car leasing and renting. Hopefully by the end of this article, you will have a much better understanding on the difference of these concepts.

First off, renting lets people use a car for a short period. The rates are determined by a rental company and can range from daily to weekly charges. On the other hand, leasing is a financing option. This lets people drive and pay for a car that they want much like a loan.

Renting is relatively easier than leasing. Credit ratings, income and debt are all examined before being able to lease a vehicle. This often reflects on your credit report. Renting meanwhile is not much fickle when it comes to customers.

A rented car is easier to return and replace than a leased one. Certain terms often prevents a lessee to return the vehicle especially without penalties. A lease contract is also long-term and more difficult to opt out than a rent.

Car rental companies do not have much variety in the cars that they offer than car leasing companies. Your choice of rented cars is much more limited.

Rented ones are usually covered with basic insurance but you have to agree to pay for fuel and not damage the vehicle. Warranties can be included in a leasing agreement which covers for maintenance but not gas. Any damage to the vehicle must be paid for by the lessee.

As you may know understand, car leasing and car renting are very much different from each other.