Let's look at the concepts of "rental" and "hire" of cars
Indeed, at first glance, these concepts are identical. However, there are certain differences between them, which every individual lessee needs to know. For both cases, the characteristic feature is a transaction that provides a vehicle - a car - for paid temporary use.
Note that any rental relationship is a civil law relationship. The agreement prescribes the lessor to provide his property to the lessee for paid temporary possession and use (without transferring ownership rights) or for paid temporary use.
Thus, the vehicle, in our case - a car, is the object of the lease.
Details in detail
A vehicle rental agreement is concluded with an individual, and the use of a car under a lease agreement is possible for both individuals and organizations. Looking ahead, we will say that this is not the only difference.
Transport lease implies an agreement concluded between the parties for the temporary use of a car. If the contract contains a specific time frame, it is called fixed-term, meaning exactly that time period.
Car rental is a type of lease with a specifically defined time frame. These time frames cannot exceed 12 months. The minimum rental period can be several hours.
Lease is possible in relation to any property, both movable and immovable, for example, an apartment or an office. It would be correct to say the following about lease: anything that can move can be leased (snowmobile, scooter, bicycle, airplane, tractor, car).
The car is driven for the duration of the lease by an individual who has signed the contract, for his own personal purposes, without a driver.
Car rental requires the presence of a driver, a parking space, and the cost of gasoline from the service organization. However, at present, many transport companies and centers conclude a lease agreement without a driver, i.e., "without a crew".
Car lease agreement
The lease agreement considers an individual rent, which is negotiated and discussed by both parties. Moreover, regular customers can count on good discounts and participation in promotions.
Moreover, in the situation with car rental, the main expenses for repair, maintenance and operation of the vehicle fleet are the responsibilities of the company that provides the car for rent.
The vehicle rental agreement may provide for the following points: major repairs of the car by the lessee, its lease, provision of this car for free use to another person, etc. Such options are not provided for in the rental agreement.
Car rental agreement
The rental agreement is a public agreement: the rental of a vehicle provides for the same, fixed rate for all consumers (lessees). In addition, if the lessor has its own goods (transport units), the lessor does not have the right to refuse the lessee to conclude a rental agreement.
Only the lessee can use the rental car, it is not provided for transferring the steering wheel of the car to another driver. Under the rental agreement (especially in the "without a crew" format), the client has the right to dispose of the car at his own discretion.
Car rental imposes serious obligations on the client, including 100% safety of the car. If the rental car gets into an accident and gets damaged, all costs for its repair are borne by the lessee. Also, according to the agreement, refueling the car with gasoline, using the parking lot and other maintenance costs are borne by the client.
Commercial use of the car
Commercialization of the lessee's goals is possible only upon conclusion of a lease agreement. The lessee, using someone else's property for his own money, achieves goals: products, income, other activities are his property.
When renting a car or other vehicle, commercial activity is excluded. That is, spending a vacation in a rented car, delivering pizza to customers' orders is possible under a lease agreement, and going out for a barbecue in nature or meeting a friend at the airport - only upon conclusion of a rental agreement.
As a summary
Car rental is the paid use of a motor vehicle by an individual of service companies at established rates for a strictly defined period of time without a driver, which does not provide for commercial use of the vehicle.
Car rental is the paid use of a motor vehicle by clients, both individuals and legal entities, of service companies at agreed prices for a period of time that can be extended by agreement of both parties. It has two formats: "with a crew" and "without a crew", the client is allowed to conduct commercial activities.
As we can see, despite the identity of the concepts, their main content has significant differences, which must be taken into account by each lessee when applying and to the car rental company in Montenegro.
