The Long Term Rental is for drivers who want to change cars every 2/3 years and want to pay a fixed rent each month.
It is possible, instead of buying a car, to rent it for a long time. This is called the LLD. We explain everything about this new way, very fashionable, to own a car.
The long-term rental in a few figures …
The CCFA (Committee of French Automobile Manufacturers) reported a 6.3% increase in registrations in France in the first half of 2018 compared to the same period of 2017 for company cars. An increase due mainly to the success of the long-term rental. Thus, the percentage of LLD (Long-Term Rental) starts in the global corporate vehicle market in 2017 was 56.4%, or 510,098 vehicles. This represents an increase of 4.9% over 2016. The LLD fleet represented 1,366,796 corporate vehicles at the end of 2017, up 7% from 2016.
For individuals the numbers are good too. One in five cars would be a LLD. There are 1.2 million cars with this type of contract on a fleet of 38.4 million. But when the car is new, the numbers are higher: 22% are in LLD. The National Union of Long-Term Car Rental companies also gave these figures last January: an increase of 7.2% and 130,701 LLD starts in the last quarter of 2017. There were 667,634 new LLD car registrations in 2017 , the majority in private vehicles and especially electric models.
What is the operation of the LLD?
The Long Term Rental or LLD is for drivers who want to change cars every 2/3 years and want to have a fixed rent to pay per month. You can not buy the car at the end of the contract unlike the LOA.
The gray card is in the name of the one who rents. PVs too!
Who pays what?
The tenant pays a fixed monthly rent. The amount of monthly payments is calculated according to the value and model of the car, the duration of the contract, the kilometers traveled and the various services included. A deposit, a personal contribution, can be requested. It will be returned at the end of the contract.
In the event of loss or theft, it is useful to take out a financial loss insurance to ensure the rental dates.
What are the advantages and disadvantages of the LLD?
In addition: The LLD sometimes includes certain services, such as maintenance, assistance, repairs and the replacement car in the event of a problem. The car budget is mastered and known each month.
In less: We can not return to the contract unless a clause provides. Compensation will be requested in case of early termination of the contract. Mileage is limited and the excess is charged.
What are the obligations of the tenant?
The lessee has signed a contract with the maximum number of kilometers he can make with the car, usually 15000 for gasoline and 25000 for diesel.
You must make the vehicle in good condition: beware of scratches, abnormal signs of wear, broken headlights, bumps on the body, which may be subject to a surcharge to pay.