Have you ever leased a vehicle or other machinery? It may be relatively infrequent to lease those in private.

As for Japanese company, most of companies usually lease business equipment companies need such as personal computers, desks, company cars, copy machines, etc. 

This time, we would like to share you information about “lease”, especially about leasing a vehicle.

・Differences Between Leasing and Renting Vehicles

There may be some people saying "I have rented something, but I have never leased before". Do you know what the difference is between leasing and renting? Both of them have similar meanings, but there are mostly two significant differences between "lease" and "rent". 

One of the big differences is “the period”.

People who rent a car commonly have many use purposes such as going out on weekends and holidays. So, in case of renting, you have "very short term" contracts for half a day, one day or a few days. On the other hand, as leasing a car, you can use it for a certain period of time by "long term contracts" of 3 years, 5 years and 7 years, and it can makes you feel like it is your own car while contract period.

Another different point is "the users".

Both lease and rental, "owner" and "ownership" are belonged to a leasing company or a rental company respectively, but in case of renting, a car can be used by an unspecified number of people because of short term contracts, while in leasing, a car is used by specific user himself / herself in long term.

・Leasing Cars In Japan

In Japan, it seems that people who lease cars are gradually increasing these days. (Now, leasing car is account for around 4.5 % of total registered vehicles in Japan, according to JALA) Why are people moving to lease, not buy a vehicle? 

There is light vehicles (Japanese category of small vehicles) like SUZUKI WOGONR in Japan, and people tend to buy this kind of vehicle as car costs are lower. Since the light vehicle tax was rose in 2015, the unit sales amount has been decreasing. Also, the decreasing average salary is involved in this circumstance as one of the reasons. That’s why, lately some people use the leasing service to save their car maintenance costs down.

The advantage of leasing is that maintenance costs can be cut down. Also, it is very simple procedure to lease a car; you don't need process the difficult documents anymore.

Even if leasing cars is increasing, leasing service is still not known to many people generally, and there are few car lease dealers. The leasing industry recognize that situations, and has been increasing the number of dealers and maintenance factories.

Not only car, but also leasing trucks is also attracted attention. Isuzu is broadcasting a commercial about leasing ISUZU ELF in Japan recently.

This service is not broaden around the world yet, so if you are thinking of buying used trucks, please check our website.

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Yamada Sharyo Co., Ltd.

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