You know the car rental exercise. You search for the best price, then start booking a rental for your European vacation. Then comes the bad news. Do you want your spouse to drive the car? It will be five euros a day extra. Do you want insurance with that? Oh boy, that’s extra too! In long term rentals, this all adds up quickly.
It’s not just the upfront cost. Will Your Credit Card Company Really Pay Your CDW (Collision / Damage Waiver)? Will the rental company try to charge you for that ding you noticed after you drove the car out of the parking lot? Maybe you think there should be a better way.
French Buy Back Lease to the rescue… Maybe
If all of the above conditions apply to your car rental search, or you are simply tired of the hassle and worry of renting a car in Europe, you may want to check out the French buy-back lease program. It is the way I choose for my car trip in Europe. You will need the car at least 17 days, but you will get a brand new car, all zero deductible insurance, family members can drive the car and you probably won’t queue to pick it up. This summer we chose to use the Auto Europe Buyback program.
Let’s bite the car in Avignon. The car actually picked us up, because when we called to tell them we were in town and would be picking up the car in a couple of days, they offered to pick us up from our hotel.
The manual transmission Peugeot (which is pretty standard in Europe, although automatic models are available on some models) worked like a dream for our month-and-a-half vacation. Then we returned it to Avignon, took out our things, signed the release papers, and were driven to the train station to begin a journey back to Paris. No problem!
Check out Auto Europe’s Peugeot Buyback Program (Auto Europe also rents cars in Europe and offers frequent specials on rental and buyback of rented cars).
How repurchase leases work
So what makes the buyback program work? Here’s the deal. There is this little excise tax called Value Added Tax in Europe, except everyone is embarrassed to call it that, so they will see it written as VAT. In France, VAT on the purchase of a new car is approximately 20%. Oh.
So why not sell the car as barely used, saving the new owner some of that tax burden? To do that, why not let a non-EU tourist, someone who is not usually subject to VAT, buy the car, drive it on vacation and hand it over to be transferred to a new owner or rental company. Of automobiles ? Yes, the government of France allows its car companies to supply cars to tourists duty free.
Pretty slick way to avoid VAT, huh?
In any case, everyone benefits from the buyback program. You get a car that’s brand new, the new French owner gets a lightly used car for much less than the cost of a new one, and the team renting the car is highly motivated to make sure nothing happens to the car before it happens. on, so they offer full insurance coverage with no deductible and a 24-hour service hotline.
This is an idea that seems to have established itself in France, with Citroen, Peugeot and Renault offered on lease programs. (This does not mean that you have to start your lease in France, but that they send the cars everywhere, including the airports., But you will have to pay a little more for the service that you are going to have to deal with people think that is French, because the plates will reflect that assumption.)
Pros and cons of repurchase leases
Buyback Pros:
- You get a new car
- The car is fully insured (zero deductible)
- Has 24/7 breakdown coverage in case something goes wrong
- You get the exact vehicle you request
- You only have to be 18 years old to participate in the buyback program
- You can pick up and drop off the car in different cities (free within France)
- You don’t have to struggle to find a gas station near the airport, you can return the empty car
Buyback Cons:
- The car will generally come with very little fuel
- You will be charged an extra for pick up or drop off outside of France
- You must lease for at least 17 days.
Price: Repurchase Lease vs. Rental
On long-term leases, say a month or more, you are likely to save money on a rental. It will definitely save you some trouble. In a short 17-21 day lease, you are likely to find better rental prices, especially if you are sure your credit card will cover CDW and you don’t have a second driver.
Things to keep in mind when renting:
- You probably want the collision damage waiver (CDW). It is insurance that covers the high deductible that normal insurance comes with. It used to be that some Gold Cards covered this cost, but you will really need to check as some have stopped offering that service. You can also check your own insurance policy for coverage.
- Rates quoted in advertisements rarely include all of the costs you will incur when renting a car; there are many hidden costs, such as having more than one driver. Plan where your car will drive, then get a final all-inclusive quote before comparing costs to the lease.
- It often costs more to rent at an airport, because airports charge rental companies to run their business there. If you land in a big city and you want to explore that city, why not spend time there and rent the car when you are ready to get out of the city.
- Book the car in the US You will often get a better rate than you could get on a hike and also get peace of mind.
Another Bond with Repurchase Leases – Great Insurance
Some people say that leases are a bit more expensive than bargain-priced rentals. This is probably true, but keep in mind that in a leasing program, the leasing company has a vested interest in the car that will be resold, probably to a rental company, and protects that interest by offering very good insurance. The full coverage insurance that comes with the rental price is well worth the peace of mind in this traveler’s opinion. We have been hit twice in parking lots. With a rental car with overpriced “full” coverage, we were charged a “paperwork” fee of 50 euros.
When we returned our rental car that had been dented the day before in a parking lot, they looked at the car and said, “Don’t worry about it, we’ll take care of it.” We did not have to fill out any paperwork.
More things to consider
Whether you are renting or leasing, here are some things to think about:
- While not absolutely necessary in most countries, it is becoming more and more common to apply for an international driver’s license. We find them mandatory in Italy at random highway patrol stops. You can get an IDL from an American Automobile Association office (although those around me seem to always be out of them) or online. You will need a passport size photo. (The license is more or less a translation of a standard US license. They don’t put you to the test posing as black-clad women sitting in wicker chairs scattered randomly on the cobblestone surfaces of tight single-lane pathways. between medieval houses, a skill you may need in Italy. You will have to learn how to do it on your own.)
- Gas costs more than what you’re used to if you’re from the US It’s measured in liters, which makes it sound more reasonable than it is until you get the bill for the fill. Diesel is usually much cheaper than gasoline. If you are on a budget, you can consider renting or leasing a diesel car to save fuel costs.
- Automatic transmissions are not very common in European cars.
