Do you want to drive a specific car without investing a lot of money? Renting is now an interesting alternative to buying. Car rental companies currently offer a wide choice of formulas adapted to all needs and all budgets. Long-term rental is one of them. Here again, several solutions and options are available to you. So how best to compare long-term rental offers?
Understand the principle of long-term car rental
Long-term rental is a formula that allows you to renting a car for a relatively long period. It will suit you perfectly if you like to drive recent vehicles. Indeed, this form of car rental gives you the possibility of changing models on a regular basis. You thus avoid the classic purchase of acquiring a car using financing (personal loan or car loan) or cash payment.
What is a long-term rental or LLD?
Also called leasing, long-term leasing is a good choice for leasing a recent or new vehicle model for monthly payments. They usually include various additional services, such as insurance and maintenance. By contacting a car specialist, you will have the choice between several vehicles for long-term rental without contribution and you can opt for the rental contract that perfectly meets your needs. It is even possible to take advantage of several options, such as the purchase at the end of the contract.
In concrete terms, leasing is similar to financing bringing together three parties:
- a car manufacturer,
- a funding body,
- a lessor (individual or company).
As a future user, you must pay a monthly lump sum to have the right to use a car that you do not own. The amount to be paid varies according to the following criteria:
- the price of the car,
- the duration of the rental,
- the services included (maintenance, insurance, etc.),
- authorized mileage per year.
You thus finance the use of a car on a predetermined duration without worrying about administrative procedures.
What are the advantages of a long-term rental?
Long-term rental allows you to drive a latest generation car without buying it. You are free to change cars regularly. At the end of the contract, you can buy the vehicle back or return it, depending on your wishes. This type of rental contract can include personalized assistance as well as maintenance services. The rental period varies from 1 year to 5 years.
Buying on credit is a fairly common formula when it comes to acquiring a car. Unfortunately, it does not always adapt to the needs of small budgets. Hence the interest of long-term rental: you only pay one fixed price each month. Please note, however, that this type of rental may require a contribution from the lessor when signing the contract rent. This is where it becomes interesting to compare the offers on the market.
There are a large number of providers offering leasing services to individuals and businesses. By optimizing your research, you can find a rental agency offering vehicles for long-term rental without contribution and save money. Then, it should be noted that an annual mileage is often indicated in the contract. In order not to exceed it and see your bill increase, it is better to compare the offers.
In general, leasing contracts allow you to enjoy a manufacturer’s warranty throughout your rental. You will also have the choice between:
- a classic long-term rental contract,
- a rental contract with an option to buy.
The vehicles offered are new or used, and come with several options. We cite in particular the alloy wheels, the air conditioning, the automatic gearbox or the rear view camera.
To compare long-term car rental offers, you must consider several specific criteria. In addition to the options and services offered, favor the possibilities without contribution, without first increased rent and without condition of recovery. The transparency of the prices of each agency is also an interesting factor. You make sure you are dealing with an honest and reliable service provider.
Understand the difference between long-term rental and rental with option to buy
There are two main types of long-term vehicle leasing: classic long-term leasing, more commonly known by the acronym LLD, and leasing with option to purchase (LOA). These formulas are generally similar. However, they have their own specificities.
If you opt for example for car rental in LLD, you can use it for up to 5 years. It suffices to pay a monthly payment which generally covers all operations related to the repair, change and maintenance of the vehicle. In other words, you know in advance the duration of use of the car as well as its cost. It can then be returned when the contract expires.
If you plan to rent a car in LOA, you will benefit from the same conditions as a rental in LLD. With the purchase option, you can nevertheless buy the car at the end of the contract. The acquisition price will be calculated according to the cost of the car debited with the amounts paid during the rental period. Note that this type of contract generally does not include vehicle maintenance and repair services. It gives the right to a withdrawal period of 14 days.
Price is the most important criterion when it comes to choosing between LLD and LOA. You can evaluate each of these formulas by requesting several quotes. Based on your budget and your needs, it will therefore be useful to evaluate the different costs indicated in each contract. Pay particular attention to the following points:
- the contribution requested,
- the monthly payments,
- repair costs.
Of course, a long-term rental without commitment is to be preferred.
Favor long-term rental contracts without first increased rent and without contribution
An increased first monthly payment is often necessary when you sign a long-term rental contract. It reduces the amount of subsequent monthly payments. You will thus have the impression of paying less for your vehicle. However, it is not uncommon to find rental contracts without this type of condition.
A long-term rental contract without contribution makes it possible to take advantage of a vehicle without paying a substantial sum at the start of the rental. This option is now offered by various companies specializing in leasing. You can thus better control your budget, whether you want to buy the car at the end of the contract or not. Generally, the down payment required for a new vehicle is around 10% of its value. You therefore avoid this investment.
At the end of a long-term LOA rental contract, you can acquire the car. The monthly payments will however be higher if you have signed a rental contract without contribution. For an LLD rental, you can return the car at the end of the rental period without becoming its owner. However, you can change the model by taking out a new contract. Note that the return may possibly be accompanied by additional costs.
Find a long-term rental without down payment and without first increased rent
Car leasing has been around for decades. However, the concept evolves regularly in order to allow motorists to take advantage of more advantageous offers adapted to their needs. To find the best long-term rental formula, you must analyze the different offers. To simplify your task, look for quotes established without input.
An estimate established without contribution allows you to access rental proposals, with or without purchase option, without advancement of contribution. This applies to both used leased vehicles and new models. It is therefore important to be well informed about the monthly payments to be paid. Offers with clear prices, without hidden costs, will determine your choice. Leasing companies that have a policy of transparency generally allow you to carry out a simulation of your rents.
In terms of car rental, you have the choice between LLD, LOA, short-term rental and leasing. Prefer fixed monthly rates to avoid any repayment problems. These amounts generally include monthly payments, vehicle options and additional services. This will make it easier for you to assess the final cost of your lease.
Clarification: when you compare long-term rental offers, it is possible that you come across contracts requiring security deposits or relatively high intakes. Some car leasing providers will even offer you contracts with increased first rents. These formulas mislead you and distort the estimate of your rental per month. You spend more and go over your car budget.
To avoid this type of problem, avoid overly promotional offers. Trade-in conditions on an old car or excessively affordable rents in return for a high contribution can in fact mask the lack of clarity in a contract. It is also possible that the car models offered are not of high quality. The transparency of prices and conditions should be one of your main selection criteria, in addition to the absence of contribution and increased first rent.