What is Long Term Rental (LTR):
Already used by companies to manage their fleet, long-term leasing (LLD) is opening more and more to individuals who no longer wish to invest in the purchase of a car or who wish to change regularly, so the rental long term and an alternative to the purchase.
Buying a car is not an investment but a waste of money. Be aware that a new vehicle loses an average of 25% of its value in the first year. Do not forget the maintenance and user fees that represent a significant cost. Long Term Rental (LLD) offers the opportunity for an individual to drive a new car without breaking the bank.
The principle is simple: you rent a vehicle over a period ranging from 1 to 5 years for a specific mileage. Several elements are taken into account to fix the amount of monthly payments:
the price of the car; from 15euro per day
the price of its residual value at the end of the lease;
the duration of the contract ;
the number of kilometers traveled during the rental period;
services included (maintenance, assistance, insurance …).
Who is this formula for?
The long-term rental is for anyone wishing to regularly replace their car, every two, three or four years. Big and small riders, think before you commit because the mileage is fixed and fixed in the contract. It is generally 15 000 km / year for a gasoline model and 25 000 km / year for a diesel.
The advantages of long term rental
The long-term rental allows the driver to control his budget because the rent is identical each month. Indeed, maintenance, insurance and assistance are included in the contract which allows you to drive with confidence without worrying about possible costs related to the vehicle.
In addition, the long-term lease does not impose a starting capital. Your file is of course studied by the renter, who may, in certain cases, ask you for a deposit which will be returned to you at the end of the contract.
Another advantage of the LLD: the tenant can change cars as often as he wishes without having to deal with the resale of his old car.
Finally, according to a comparative study on the cost price per kilometer (cost of a vehicle reduced to the kilometer including its price, the cost of the credit, the administrative expenses, the operations of interviews), the LLD is more economical than the purchase of a new car.