Short-Term Car Leasing

ABOVE: A Peugeot 307on the highway. INSET BELOW: The Partner (right) and 807 (white car) are the two models that sell out first every year in Peugeot's Open Europe "Buy Back" short-term lease program.

If you live outside the European Union and need a car for several weeks or months, short-term auto leasing  from Peugeot or Renault can help you save money and avoid insurance hassles.

The concept behind short-term leasing, or "purchase-repurchase," is simple: In France, the purchase tax on a slightly used car is much less than on a new vehicle. By leasing new cars to tourists at cheap rates, Peugeot and Renault create a supply of almost-new, reduced-VAT cars that can be sold to European citizens and rental firms at highly competitive prices. The result is a win-win-win situation for everyone involved--including you, the foreign visitor.

The benefits of short-term leasing are considerable:

• You get a new car straight from the factory.

• You save money because short-term leases aren't subject to VAT (value-added tax), which typically ranges from 16 to 21 percent for car rentals.

• You get full comprehensive insurance, with no deductible and no extra charges for CDW or LDW. (See my rental-car insurance article, and you'll understand why this is a real plus).

• You can pick up your car at one location and drop it off at another if you wish.

• Age limits are minimal. Both Peugeot and Renault will lease to licensed drivers over the age of 18, with no maximum age. (In contrast, many rental firms won't do business with young drivers or adults over 70.)

The downside? There are just two:

• The minimum Peugeot lease period is 17 days; for Renault, the minimum is 21 days.

• You can be a citizen of any country, but your domicile or permanent address must be outside the European Union. Also, if you're a business traveler and your company is paying for the lease, the firm must be headquartered outside the EU.

A friend of mine, Teresa Plowright, leased a car for a trip from Italy to Greece. To read her account of the experience, see page 2.

Next Page > A first-hand report > Page 1, 2, 3

Photos (top to bottom) Patric Sautelet, A. Chatelain, and C. Cugny.
Photos copyright © www.media.renault.com.

 

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