Il long term rental in 2023, has seen significant increases (in relation to supply and demand). Both private individuals and businesses seem to appreciate this type of rental, but specifically the most popular method is the "without advance".
If you are interested in rent a car without advance payment there are some things that you cannot ignore and that we will try to delve into in this article.
Long-term rental without down payment: let's start from the meaning
Il long term rental, as the name itself suggests, is a service through which a car rental company makes available one or more vehicles from its fleet (which can include commercial vehicles, sedans, small cars, SUVs and more).
The wide range of vehicles made available to customers (both private and business) makes more accessible mobility, managing to satisfy the specific needs, also the most disparate.
However, NLT contracts provide for various solutions, such as the one anticipated shortly before: the formula "without advance“. With this term, we refer to an agreement in which the lessor grants the desired vehicle without requiring any advance payment.
private individuals, advantage more important of this option is that they must not immobilize any amount of money. In this way, their economic assets remain intact and available for other needs.
However, it should be noted that the “no down payment” option generally entails an increase in the monthly fee of long-term rental. This sum is rising It can change, and does not follow a standard rule, so it must be evaluated on a case-by-case basis when considering this solution.
Later, we will provide some practical examples so that private individuals or companies who are interested in this solution can evaluate convenience based on your economic situation. Regardless of the choice of down payment, the long-term rental fee always includes the same ancillary services, which we will examine in the next paragraphs.
An example of an NLT contract without advance payment
Like any long-term vehicle rental company (commercial and otherwise), Finrent also has a dedicated section on its official website, in which it presents its fleet of vehicles available for a long-term rental, some of which are offered precisely by the option we are interested in, as well as the "no advance" option.
At the time of writing this article, we present a selection of vehicles available for long-term rental, highlighting the difference of the monthly fees to be paid compared to those who opt for the "no advance" option and those who select the "with advance" solution.
As anticipated, we report examples of a long-term rental contract, distinguishing the offer into "advance" and without advance".
Let's take the case of Renault Clio 1.0 SCe 65CV Balanced, without an advance payment the monthly installment amounts to €330,72 (VAT included), with an advance payment of €1.000 the installment would be €305,30 (VAT included) and with an initial capital of €5.000, the monthly payment would be €203,64, €XNUMX (VAT included).
Here are other examples in the same order (model, without down payment, with €1.000 down payment and with €5.000 down payment):
- Fiat 500 1.0 70HP Mild Hybrid: €330,72 (VAT included); €305,30 (VAT included); €203,64 (VAT included).
- Renault Captur 1.0 TCe 12V 90CV Equilibre: €389,18 (VAT included); €368,85 (VAT included); €287,51 (VAT included).
- Peugeot 208 1.2 PureTech 75CV S&S Active: €410,73 (VAT included); €390,40 (VAT included); €309,07 (VAT included).
- Audi A1 SPB 25 TFSI 95CV: €453,84 (VAT included); €433,51 (VAT included); €352,17 (VAT included).
- Citroen C4 1.2 PureTech 130CV S&S Feel: €469,70 (VAT included); €449,37 (VAT included); €368,03 (VAT included).
- Maserati MC20 3.0 V6 DCT car 630CV: €3.757,60 (VAT included) / €3.635,70 (VAT included).
You will have realized that the price of the monthly fee (all inclusive), is drastically reduced when the advance is most substantial. In fact, the advantage of whom It has a lot of liquidity (to the point of not influencing one's lifestyle), is to be able to advance a substantial sum of money, in order to pay a lower monthly instalment.
Let's clarify the fact that the "no advance" option should not be confused with one refundable sum of money, in fact a possible advance of money is not comparable to one deposit and much less to a security deposit.
Those who, however, do not have liquidity and much less would like to immobilize capital, will be able to easily opt for the "no advance" solution, which provides the same services made available by any other long-term rental contract.
In fact, by all-inclusive fee, we mean the formula that provides - prior payment monthly payment – a series of services included, including:
Here is the rewrite of your points, with the same concepts but without repetition:
- RCA insurance: car civil liability insurance (RCA) is always included, but the maximum Kasko coverage may vary depending on the type of contract presented.
- Roadside assistance: Roadside assistance is available and is free for those who sign an NLT contract, both in Italy and abroad. It is essential that all details relating to this cover are clearly specified in the contract between the lessor and the driver.
- Mass in the street: When you register a new vehicle or purchase an already registered vehicle, a payment is required to allow it to circulate (IPT). This cost is already included in the monthly fee.
- Service and maintenance: The costs of inspections, both ordinary and extraordinary, can compromise any economic situation. However, for those renting a vehicle long-term, there is no need to worry, as everything is included in the rate.
We suggest that you always consult your long-term rental contract, so that you can evaluate all the aspects in your favor and/or against you.
Beyond the economic convenience of long-term rental without a down payment
In addition to the economic benefits and bureaucratic simplifications that long-term rental offers, especially for companies that can enjoy tax deductions and deductions of up to 100%, another significant aspect concerns the associated psychological benefits.
Operating an owned vehicle inevitably comes with a number of responsibilities, but when you choose to rent, these responsibilities become significantly reduced (if not completely abolished).
This phenomenon is highlighted by the growing success of car sharing in large cities. More and more people prefer to use a vehicle only when they actually need it, taking advantage of new mobility options and avoiding so the expenses and psychological stress attached to the ownership of a vehicle.
This transition has been accelerated by the post-pandemic period, following the spread of Covid-19. Since then, it seems that people have changed their way of thinking, their approach and their habits. The priority have undergone a radical change, we opt for savings and less demanding mobility than managing your own car.
Furthermore, this choice allows you to enjoy more fulfilling travel experiences, since you can plan all your expenses without the fear that unforeseen events could erode your capital.
