Renting vs Leasing:
Know the differences between both models in Costa Rica.
In the following table, you can compare the characteristics and benefits that each vehicle ownership method provides, so you can have a better understanding of the comparisons between vehicle renting versus financial or operational leasing in financial terms, as well as fleet purchase.
| MODEL | RENTING WITH TOTAL FLEET | LEASING OR FINANCIAL LEASE | OPERATING LEASING In financial function | BUY |
|---|---|---|---|---|
| PURPOSE | Use, enjoyment and/or usufruct of the car Improve financial performance by maximizing tax shields Convenience in the administration of the vehicle via outsourcing | Use, enjoyment and/or usufruct of the car Finance the acquisition of the property Get some financial benefits by getting tax shields on interest expense | Use, enjoyment and/or usufruct of the car Finance the acquisition of the property Improve financial performance by maximizing tax shields | Uso, disfrute y/o usufructo del auto |
| FORMALIZATION EXPENSES | Does not apply | Bank fees | Bank fees | Does not apply |
| DEPOSITS | Performance guarantee | Deposit for 25% of the value of the vehicle | Deposit for 25% of the value of the vehicle | Does not apply |
| DURATION / PERIOD OF USE OF THE VEHICLE | 24 to 60 months | 36 to 96 months | 60 to 72 months | At buyer's discretion |
| FEE INCLUDES | Vehicle rental Insurance Preventive maintenance Basic corrective maintenance (optional) Roadside Assistance Substitute vehicle (optional) we march Technical Review Valet service in vehicle transfers Cost of selling the vehicle | Payment of interest Amortization of capital Insurance We march (optional) | Vehicle rental Insurance We march (optional) | Does not apply |
| VEHICLE OWNERSHIP | Lessor | Bank / Finance / Lessor | Bank / Finance / Lessor | Buyer |
| EXPENSES NOT COVERED | Fuels Tolls Insurance deductibles Other maintenance not included | Preventive Maintenance Basic corrective maintenance we march Substitute vehicle rental Fuels Tolls Insurance deductibles Other maintenance not included Vehicle transfer costs Vehicle costs of sale | Preventive Maintenance Basic corrective maintenance we march Substitute vehicle rental Fuels Tolls Insurance deductibles Other maintenance not included Vehicle transfer costs Vehicle costs of sale | Insurance Preventive Maintenance Basic corrective maintenance we march Substitute vehicle rental Fuels Tolls Insurance deductibles Other maintenance not included Vehicle transfer costs Vehicle costs of sale |
| PURCHASE OPTION | Because it is a rented property, there is no option to purchase the vehicle | Option for 25% of the purchase value | Option for 25% of the purchase value | Does not apply |
Renting for companies or businesses
Choose the right vehicle for your business needs. Make your business more profitable, obtain tax benefits, and reduce operational and administrative burdens with a long-term rental contract.
Quote the vehicle for your company or business with us.
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How to choose the best option?
The idea of acquiring a fleet of vehicles may initially sound attractive, however, when considering expenses such as dealership revisions, Technical Vehicle Inspection (DEKRA), road taxes, maintenance, and depreciation, it becomes evident that it may not be the most convenient decision.
Both companies and individuals usually opt to buy a car, but there is another option, perhaps not so well known, that should be taken into account: Renting.
In general, Renting is a quick and easy option for those seeking to meet their company's transportation needs. This model does not require formalization expenses, transfers, or cumbersome procedures, and is available for terms of 2 to 5 years, once the lease agreement is finished, the vehicle is returned to the lessor.
When purchasing a car from a dealership, we seek to have the certainty that it is in excellent condition and/or that we have some type of backup. Renting offers the same security, without the implications that purchasing a vehicle entails.
Another advantage of the Renting contract is that the installments are 100% tax-deductible, which benefits both companies and self-employed workers such as lawyers, engineers, real estate agents, and consultants.
What is the difference between Renting and Buying Vehicles?
There are several details to consider, for example, when calculating the cost of a vehicle, expenses such as road tax, vehicle technical inspection, and maintenance must be taken into account. If the car is purchased from a dealership, it must be taken for inspection every six months. Otherwise, there are expenses related to maintenance, mechanic workshops, and spare parts.
Opting for a loan to purchase a vehicle creates debt with the bank or financial institution for very long periods of time, which affects creditworthiness.
Finally, and perhaps the worst of all the details to consider: by the time the car is fully paid off, it will be terribly depreciated.
With Renting, you can literally get all the benefits that come with acquiring a new fleet without the negative details. In addition, the monthly fee is flexible, so the benefits can be modified to offer you a fee that fits your budget.
What are the advantages of Renting?
Some advantages of choosing the Renting service include:
- Wide range of vehicles and options.
- Simple and fast process.
- Does not affect your creditworthiness.
- Applicable for individuals and corporations.
- No formalization or transfer fees.
- Monthly payments are 100% tax deductible.
- Contracts for 2 to 5 years.
Basically, Adobe's Renting provides excellent benefits and takes care of the disadvantages of purchasing vehicles so they are not your problem. You can have from a single vehicle to an entire fleet available without the headaches of managing them, coordinating preventive and corrective maintenance, providing replacement vehicles, and other benefits.
Would you like to learn more about the Renting option? Of course you do! Contact one of our agents today and get all your questions answered by calling 8301-3965 or emailing totalfleet@adobecar.com. You can also visit our website anytime to see more details.
All you need to know about renting
Discover the pay-per-use model that is trending worldwide and learn about all the advantages of leasing a private car or outsourcing your fleet of vehicles.