What is a vehicle renting?
Vehicle renting is the renting, or the use of, a motor vehicle for a fixed period of time at an agreed amount of money. It is offered as an alternative to vehicle purchase. The key difference in a rent is that after the primary term (usually three or four years) the vehicle has to either be returned to the leasing company or purchased for the residual value.
Renting a vehicle is beneficial because it allows customers return a car and select a new model when the rent expires which allows you to drive a new vehicle every couple of years without the burden of selling the old car.
More reasons to rent:
- Fixed repayments over the term allows you to budget effectively.
- You don’t have your cash tied up in a car, which depreciates in value.
- You can drive a better car for less money.
- You have lower repair costs because you are under the vehicle’s included factory warranty.
- You can easily transition to a new car every three or four years.
- You don’t have trade-in hassles at the end of the rent.
- Businesses can have a tax benefit.