To buy or not to buy a car? And, if so, how and when to change our old car? Sometimes the choice can be really hard. With many unknowns and, today, one more opportunity. We are talking about a type of contract that meets the needs of many motorists or aspiring motorists: long-term rental. Which today can be convenient for everyone.
In fact, long-term rental is becoming one valid alternative to buying a car and also of a motorcycle. If in the first place it was reserved only for natural and legal persons with a VAT number, now it is a solution also for individuals in possession of only a tax code.
Long-term rental: what is it?
Long-term rental it is nothing more than a monthly subscription, a sort of rent, thanks to which it will be possible to use a car or a motorcycle for a certain period of time, without having to think about all the charges that a vehicle entails: insurance, road tax, maintenance. In fact, with long-term rental, you will only have the trouble of having to pay the cost monthly fee and fuel.
The major users of this contractual formula are professionals belonging to a professional register: lawyers, doctors, journalists. But even the private individual without a VAT number can take advantage of this type of contract, without any limitation and without any disadvantage or contractual differentiation from people with a VAT number.
How does it work?
By buying a vehicle we acquire its ownership, with long-term rental this does not happen because we only buy the use of the vehicle. In fact, the property belongs to all intents and purposes of the rental company to which we turn.
If we are interested in the long term rental we need to understand what we're getting into and what we need to pay attention to. First of all, how long can a contract last? long-term rental? The contractual term generally varies from 18 months up to a maximum of 48 months (4 years). If provided for in the contract, however, it is also possible to extend its duration.
Before signing the contract we must have clear ideas about several things, in particular about:
- Type of vehicle we want to rent;
- Maximum limit of kilometres;
- Services included.
La type of car choice is the first factor affecting the monthly fee. Utilitarian? Sedan? Familiar? Or maybe an off-road vehicle? A small car will be less expensive than an estate car which in turn will be less expensive than a sedan. It all depends on what you are looking for and want, as well as on the company you go to for long-term rental.
Another factor that affects the monthly fee is the mileage. Upon signing the contract we will be asked to enter a maximum limit of kilometers that we can travel with that vehicle. It is an aspect that can be frightening, especially for people who grind kilometers every day for work reasons. How do you figure out what the right limit might be? You will have to try to make predictions about your movements, perhaps leaving some margin.
What happens if we exceed the mileage limit stipulated in the contract? There is generally a penalty if it is, but we can do something sooner. By calling our rental service, we can modify the contract if we notice that we have greatly exceeded the kilometer limit. It will increase the monthly subscription, but we will avoid paying a penalty. So keep an eye on your odometer.
The reverse scenario can also occur: the kilometer threshold imposed is too high. When we are hugely under mileage, based on the rental company, there is a refund. It's a rarer scenario, but it can happen.
Furthermore, many companies provide for unlimited km contractual forms. This involves a higher than normal monthly fee, but it could be useful for someone to avoid future problems.
Another aspect to consider is the place of residence. Depending on the region you are in, there will be different rates. Residence affects less than the type of vehicle and mileage limit, but it's always handy to know.
Last factor, but not least, is the set of services you require. There is a standard package of services which includes, for example, mechanical assistance, management of administrative practices, etc. In addition there are more special services: delivery of a replacement car on certain occasions, tire replacement, a fuel card. The monthly subscription therefore varies according to what we insert in the contract.
Advantages of long-term rental
There are two advantages to long-term rental: the first is economic, the other is managerial.
The Veconomic advantage long-term rental is relative. It is not possible to foresee all the costs of a vehicle and consequently also how much it is possible to save with this contractual formula. What can be said is that long-term rental meets the needs of those who like to replace a vehicle frequently. To understand if it can actually be economically convenient, ask for a quote.
Generally the cost of long-term rental is slightly more expensive than the purchase of the vehicle, but the services that are typical of this contractual formula make it almost superfluous to discuss the additional cost. However, to get an idea of the burden, you can consult the comparative tables that we requested from the Automotive Service Group.
Il management advantage, on the other hand, is precisely the reason why this formula is chosen. It is closely linked to the economic advantage: the rental price increases or decreases based on the services we request in the contract. When we talk about management advantage we are talking about lightening the load of all the worries that a vehicle entails. We don't have to worry about paying road tax and insurance (RCA and Kasko), but only the fuel (and obviously the monthly fee) can almost seem like a utopia. However, long-term rental is this: a release from worries. Then adding all the other services that the rental offers, including roadside assistance and ordinary and extraordinary maintenance of the vehicle, we understand where the real savings are: on our time and on our health.
What to do at the end of the contract?
During the signing of the contract we will also have to choose what to do at the end of the latter. We can continue driving the vehicle, change it, return it. We remind you that you can also change the contract at a later time.
Long-term rental company
Many car companies have a long-term rental service available, but they are not the only ones competing in this market. Here is an alphabetical list of the main long-term rental companies.
- Old Motive
- Alphabet Italy
- Arval
- GE Capital Services
- Leaseplan Italy
- Leasys
- Savarent
