With a long-term rental, you no longer buy your vehicle "as before," paying the full price. You opt instead for the rental of your new vehicle at pricing conditions defined in advance. The formula appeared on the market a few years ago and is now all the rage with individuals. So, good or bad idea? Here are the arguments for and against long-term rental.
The long-term rental, also called LLD in automotive jargon, represents an alternative to the classic vehicle purchase. It consists of renting a vehicle for a fixed period (on average, for one to five years) while respecting certain criteria of use (mileage in particular). Once the rental contract has expired, the driver returns the vehicle and can, if he wishes, enter into a new contract with a new vehicle.
The main advantage of long-term rental concerns the financial aspect. By integrating maintenance, insurance, assistance, or other services such as technical control in the contract, the driver knows in advance the price that his vehicle costs him each month. He can thus drive without having to worry about the possible costs associated with the use of his vehicle. Another advantage is that long-term rental spares the driver the delicate task of reselling the vehicle. It is the lessor, or the concessionaire, who takes back the vehicle, as provided for in the rental contract. Finally, long-term rental allows the driver to travel in a new vehicle and to be able to change it regularly.
The leasing requires compliance with an average mileage that it is important not to exceed under penalty of having to pay financial penalties, often high. It is, therefore, necessary to know with precision the number of kilometers that we cover on average each month before signing an LLD contract. Long-term rental also commits the signatory to a contract: it is impossible to go back when you affix your signature to an LLD contract. Last drawback: long-term rental does not allow the purchase of the vehicle at the end of the rental period. It is then necessary to rent a new vehicle, buy another, or favor a rental with the option to purchase (LOA).
By virtue of its characteristics, advantages, and disadvantages, a long-term rental is aimed primarily at drivers who wish to be able to renew their vehicle every 2, 3, or 4 years while having a new vehicle in their hands each time. Long-term rental is also suitable for fans of “all-inclusive” budgets, who will be able to get a very precise idea of the monthly cost of using their vehicle. If you are more of the type to keep your vehicle for more than 5, 7, or even ten years, it is better to keep the classic purchase formula for your vehicle. "
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