Short-Term Car Leasing in Europe
Renault and Peugeot tourist leases for overseas
ABOVE: A Renault Grand Espace van. INSET BELOW: The
Peugeot Partner and 807.
If you live
outside the European Union and need a car for several weeks or months, short-term auto leasing
or Peugeot can help you save money and avoid
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, Renault and Peugeot 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
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
You get full comprehensive insurance, with no deductible and no extra charges for CDW or LDW.
(See our 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 three:
lease period is 21 days. (You can return the car in 17 days if your trip is
shorter, but you'll be billed for three weeks.)
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.
Renault and Peugeot offer fewer pick-up and drop-off points outside
France than traditional car-rental firms do, and you'll pay a surcharge to
collect or return your car at some locations.
A friend of ours, Teresa Plowright, leased a car for a trip from Italy to Greece. To read
her account of the experience, see page
A traveler's report (Renault
Photos (top to bottom) Patric Sautelet, A.
Chatelain, and C. Cugny.
Photos copyright © www.media.renault.com.
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