Leasing and Renting: What’s the Difference?

Leasing and renting are two financing options that are now widely used by both companies and individuals. However, the details in each service can often lead to confusion.

It’s not uncommon for people to wonder which is more convenient for their next vehicle: renting or leasing, or to be unclear about the advantages of one over the other. That’s why at Astara, to clear up any doubts, we break down both services for you.

Discover the advantages of renting, the advantages of leasing, and—most importantly—the differences between these two increasingly popular financing options, each successful in its own space.

What is Renting?

It’s completely normal that renting is being talked about more and more. The latest data from the Spanish Vehicle Renting Association (AER) confirms an exponential increase in this service in recent years.

In 2023, renting accounted for 26.37% of all vehicle registrations in Spain. Back in 2000, it was only 4.94%.

Renting is a pay-per-use service—essentially a vehicle lease—for a fixed contract period, generally from 3 to 5 years, although 6-month minimums are possible.

At the end of the contract, you have several options. You can return the car as part of the final payment, renew the contract for the same vehicle under better conditions, or even switch to an entirely new model.

But while the end of the contract is already appealing compared to traditional financing, the true advantage lies in what’s included during the rental period.

A renting contract includes all expenses except for fuel. Absolutely everything:

• Taxes such as road tax.
• Car insurance in your chosen coverage.
• Vehicle maintenance costs.
• Breakdown and repair costs.
• Roadside assistance.

At Astara Subscription, we go even further by offering:

• Immediate vehicle delivery, no waiting.
• No fixed term, you can cancel anytime.
• Option to change your vehicle if your needs change.

Renting represents an evolution in vehicle mobility that more and more drivers are discovering and enjoying.

And a significant shift has occurred in recent years: Renting isn’t just for businesses anymore. Private individuals can benefit from it with the same advantages, tailored to personal use instead of business.

What is Leasing?

In contrast to renting, leasing has always been seen as the pay-per-use service for businesses, but that’s not entirely accurate.

Leasing is a temporary financing service with interest, offering the client the ability to use a vehicle for a fixed term.

It’s essentially an evolution of traditional financing, because by the end of the contract, the company must offer a purchase option for the vehicle.

So, when the service period ends, the client can:

• Buy the vehicle by paying the final installment.
• Return the vehicle as the final payment.
• Extend the contract.
• Renew with a new vehicle.

A key detail in leasing contracts is that they usually last longer—up to 10 years—and the monthly payments are significantly higher.

Why? Because from the start, it’s assumed that the client intends to buy the vehicle at the end, even though that isn’t always the case.

Possibly the most important difference is that leasing does not include the expenses that renting covers.

Advantages of Renting

Now that we’ve defined renting and leasing, we can better understand the advantages of each.

For renting, these are the main benefits for the client:

• Choose a personalized contract length, from 6 months to 5 years.
• Monthly payments are lower than with other financing methods.
• All expenses are included (maintenance, taxes, insurance).
• At the end of the contract, you can renew for a completely new model—it’s like changing your car frequently.
• Renting payments can be deducted in quarterly VAT returns. If you're self-employed, you can also deduct 100% in your income tax return and 50% of VAT, if you prove the vehicle is used for business.

Advantages of Leasing

Leasing has also become very successful among businesses throughout Spain. It’s an attractive financing alternative, allowing companies to access new vehicles, usually mid- to high-end models, or even manage a fleet at a lower cost than buying outright.

Some of its advantages include:

• Customizable contract length, usually from 2 to 10 years.
• At the end, you can buy the car, return it, extend the lease, or renew with a new model.
• Leasing can be deducted as a business expense, offering tax benefits under the category of “fixed asset acquisition.”

A few years ago, leasing had more advantages than renting. However, renting services have evolved and narrowed the gap.

For example, at Astara Move, you don’t need to make a down payment—you can fully finance the service. Plus, new vehicles are delivered in under 48 hours, which is another compelling reason to choose renting.

Leasing has also evolved, and although it’s relatively recent, it is now available to individuals interested in this model.

Comparison Table: Leasing vs Renting

To clearly see the differences between leasing and renting, here’s a summary table of the key features of each service: