Dave's ESL Cafe's Student Discussion Forums

[river1974]

Dear teachers:

We offer car leasing and rentals, auto dealerships, auto body repairs, and tune-ups.

Does leasing have the same meaning as rental?

Thanks.

[Simon_23]

Look at this:

- rent a car
- rent an apartment
- rent a boat and so on.

If you see some building with a sign "rantal car" you can go there and rent a car.

A leasing is a financial word, I guess. Leasing relates to people who have firms and do business and want to have a car but they don't want to pay for it in one go. They pay for a car every month and then after some time they can have that car of their own.

Dear teachers, correct me if I'm wrong.

[bud]

You're very much on the right track, Simon. Especially concerning cars, rental is short-term, and leasing is long-term - usually with an option to buy at the end of the lease. You might rent a car when you go to another city on a business trip. For your own car, you might prefer to lease it rather than buy it.

[river1974]

Thanks. So leasing something is much like paying for something by installments? For example:

We paid for the TV set in installments of 100 dollars a month for five months.

Is that a kind of leasing?

[c.a.t.h.y]

As I understand it, leasing is rental for a fixed term.

If you rent a car you do not declare when you will return it.

If you lease the car or equipment you declare before you start how long you are going to use it for (usually for a long term, say two years). You can then hand it back and get the latest model.

However, there are many kinds of rental agreements, and many kinds of leasing agreements, but basically what I have said explains the difference between rental and leasing.

[c.a.t.h.y]

[river1974]

Thanks c.a.t.h.y. What you have said is quite clear. I think the copiers in my office are under a leasing agreement, since we just pay for maintenance and repair and do not own them.