Auto leasing in India

Leasing Or Renting: What Are The Differences?

Confusion between the two-vehicle services, leasing, and renting is quite a common thing to notice among people. Clearly, in both the services, car owner gives the authority of their car for a certain period of time. However, this duration is different in leasing a car or renting a car.

Any car dealer can give you a car to use on rent for a short duration, like 2 weeks to 4 weeks, whereas the process of car leasing is performed by care agencies. Also, a car can be used on lease for a wider time period, like 2 to 10 years. Auto leasing in India also provides the facility to buy the car after the leasing period ends.

This post is a helping guide to understand the main differences between leasing and renting based on certain parameters.


The time frame or the duration separates the two processes, leasing and renting properly. Leasing is a long-term commitment where a person uses the car for years. A user can use the vehicle with the full right as their car.

Whereas a car on rent is used for a very short duration like 1 -2 weeks. Usually, people planning for vacations take the car on rent to avoid the unnecessary traveling hassle.

Service Provider: 

People are into car dealership business usually provide the rental car services. A vehicle leasing agency has the sole responsibility to issue a car on lease and take care of all the contractual work before giving it on lease. Also, a leasing company can provide the vehicles on rent for a short duration.

Some people buy a car with a mindset that they can make it available for rent to earn money. Popular auto leasing companies in India and around the world use the car rental to widen their services.

Ownership Facility: 

Auto leasing in India comes with the ownership feature. Here, if an individual takes a car on a lease, but due to some reason, the user wants to buy the same car, then he or she can approach the leasing company.

The leasing company can end the leasing contract and allow the user to buy the car after fulfilling all the formalities. So, as long as you want to use the car on a lease, use it and pay the lease. When you change your mind and wants to buy it, pay the amount for ownership.

Rental option has no facility to buy a car. Sometimes, vehicle dealers buy the car so they can make it available for rent and earn a suitable amount. So, it is like a recurring process, and the owner continues to earn through the rent.

Insurance Option: 

You don’t have to worry about insurance in rental options as the rental car is usually insured, and it is used for a few days.

Leasing demands for the insurance policy as the user take a car on lease for significant durations. Usually, the vehicle leasing agency offers a package that consists of damage cost, servicing cost and insurance.

Generally, people buy the vehicle leasing package to avoid any extra cost. Also, the vehicle remains in its safest position.

Final Thought: 

The selection of car leasing or renting depends on the individual’s requirement. If you are planning a vacation on hills and not feeling comfortable using commercial transport, then the rental option is for you.

If you are a business firm and want a vehicle to import and export some goods from a distant place, then the vehicle leasing option would be feasible for you.So, analyse your necessities first and then select the appropriate option.


Pooja is a digital marketing professional. Presently, she is an incredibly passionate about software, technology, website design, paid marketing, and content marketing. She is fond of reading and Writting and exploring new things.

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