What You’ll Learn in This Article

• what vehicle rental and leasing actually mean

• the main differences between them

• who is responsible for vehicle damage

• how operational and financial leasing work

• what to check before signing a contract

What Is Vehicle Rental?

This is a standard rental agreement governed by the Civil Code, where:

• the owner remains the lessor,

• the lessee pays for the use of the vehicle,

• and the vehicle is returned at the end of the rental period.

In practice, this includes:

• short-term car rental from a rental agency

• van rental for a weekend move

• long-term corporate car use without ownership transfer

What Is Leasing?

Leasing is a special form of financing, not directly regulated by law, but it functions as a hybrid between rental and credit. There are two basic types:

• Financial leasing – ends with a transfer of ownership

• Operational leasing – the vehicle is returned, and ownership remains with the leasing company

Typical features of leasing agreements:

• obligation to cover insurance and servicing

• fixed contract term without the option to terminate early

• penalties for early termination

• the option to purchase the vehicle at the end in financial leasing

Who Is Liable for the Vehicle?

In both cases, the lessee or user is responsible for any damage caused during use. Leasing contracts, however, often carry broader liability—especially if they include penalty clauses or strict operating conditions.

Lawyer’s Recommendation

Before signing a rental or leasing agreement, check:

• who owns the vehicle

• what happens in case of an accident or breakdown

• whether early termination is possible

• whether you gain ownership at the end (or not)

Don’t rely solely on the sales rep. I’ll be happy to review your contract or draft a custom version.