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July 9, 2021

Long-term rental or own car: what to choose

Long-term rental is an alternative to buying a car and an increasingly popular opportunity in the last period.
This is a formula that companies have been using for years for their fleets, but which for some time has also been starting to be taken into consideration by individuals and freelancers.

What is long-term rental and how does it work?

It is a monthly subscription formula which allows you to use a car without buying it and without spending money on its maintenance.
This provides for the stipulation of a contract that usually goes from a minimum of 2 years up to a maximum of 5, with a fee that varies according to the kilometers that are expected to be made, the type of car (utility car, sedan, flagship) and obviously the manufacturer .
The services included in the rental are agreed before signing. Usually the only expense that will have to be incurred outside the fee is that of fuel since everything else is included.

Long-term and short-term car rental

There is a substantial difference between these two types of rental.
As for the long-term rental, this provides for a contract stipulated with the operator that goes from 24 to 60 months , with fixed monthly installments, as we have already said.

On the contrary, the short-term rental covers all those cases in which the car is rented temporarily, from one day up to six months. The short-term rental provides rates that vary according to the period and are lower the longer the rental period is extended. One of the advantages of the short-term formula is that the car can also be returned to different locations of the same rental company.

Long-term rental without down payment

When a long-term car rental contract is stipulated, in addition to the preliminary assessments on the convenience or otherwise of the operation and the inclusion in the fee of various types of services, the advance must also be taken into account. Usually, in fact, at the time of signing this type of season ticket, rental companies require the payment of an advance which, on some occasions, can also be demanding and make those with less availability in the current account hesitate.

To try to overcome this problem, more and more companies are offering long-term rental solutions without down payment . In this case, the tenant of the contract will simply have to pay the agreed monthly installments, but the amount of the individual months will be slightly higher to cover the absence of the advance.

But how does long-term rental work and what services does it include?

The long-term rental generally includes (or in any case proposed):

  • The RCA insurance guarantee (usually with fire and theft) and telephone assistance to fill in the CAI forms in the event of an accident. In many cases the Kasko is included;
  • The car tax;
  • Claim management: from post-accident roadside assistance to replacement car during the repair period;
  • Ordinary and extraordinary maintenance: pre-established coupons (usually every 20,000 km) and sudden breakdowns. The operators themselves contact and book the coupons at the affiliated workshops;
  • The replacement of summer and winter tires, to be established in advance, including services such as balancing and toe-in
  • Rescue and roadside assistance;
  • Property tax.

In which cases is long-term rental worthwhile compared to purchase?

The answer is: it depends . In fact, it all depends on how long we plan to keep our car and also on how many kilometers we have to cover. To a private individual who intends to keep the car for at least 7-8 years, the rental is never convenient: the higher costs of the purchase will be amortized over time. In fact, you will only have the real savings by keeping your old car as long as possible, perhaps with a methane system.

On the contrary, long-term rental can be an alternative if you are inclined to change cars often in order to always have an updated model, or when you need a car for a limited period of time.
This type of rental is also suitable for professionals who can enjoy tax advantages if they use the car mainly for work purposes.

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