Let’s cut to the chase. The magic word is "Lease". Yep, instead of renting a car on your next European vacation, lease it. It will save you 50% and includes amazing perks such as:
- Comprehensive insurance with no deductible
- You get a brand new car, fresh from the factory
- You get the exact car model you ordered
- Customize the car with options such as GPS, CD Changer, Child Car Seats, Luggage and Surf Racks
- Unlimited mileage
- Minimum age: 18 (unlike 23 for most car rentals)
- Pay no tax
- You can travel in 28 countries
- 24 X 7 road-side assistance
- No extra driver charges
- Fast and easy pickup/drop-off
- Pickup in one city, drop-off in another one
Check out the price difference.
The savings are certainly impressive, but the terms make this a no-brainer. Zero deductible insurance is a big deal. No matter what happens you are fully covered. When we scraped the side of our leased van down a rock wall in Southern France, It didn’t cost us a penny.
Another thing I want to stress is you get to order a brand new vehicle, loaded with just the right options. Personally, we ordered a GPS system for our van that was a lifesaver when navigating unfamiliar roads.
Speaking of the van, when traveling as a family you need a little more space. Standard rental agencies have a limited supply or SUV’s and Vans. If they do have one available you’ll pay a premium for it. With a lease, you order from the entire line-up of Peugeot or Renault cars - and customize it to your specifications.
So what’s the catch?
There are a few restrictions. First, leases are only for tourists. You CANNOT be a citizen of the European Union, although you can be an EU expat living outside Europe currently.
You also must have the car for a minimum of 17 days. Of course, with the money you save, you can probably afford to stay a little longer than the standard American two-week vacation.
How is this possible?
The reason these "leases" exist is simple. Tax avoidance. New cars in France are taxed at a much higher rate than used cars. The leasing of brand new vehicles to tourists ensures an ample supply of barely-used automobiles for savvy French car buyers. Peugeot and Renault both offer these short term leases to visiting tourists.
How to book your lease:
The process is very easy. First, book your car online at one of the links below.
Europe By Car
Renault EuroDrive
Kemwel
In a few days you’ll receive a FedEx package of forms to complete. NOTE: There is a bit more paperwork than a traditional rental, but you get to do it at home, instead of standing at a rental counter after a 12 hour flight. Once you’ve returned the papers they will send your confirmation package.
Our Personal Experience:
We arranged to pick up the Peugeot Van (pictured above) at the Avignon Train Station in Southern France. Our instruction packet said to call when we arrived. The person who answered told us to exit the train station and look for a woman holding a sign with our name on it. We were then driven a few miles to the leasing office. The pick-up took less than 5 minutes.
25 days later we dropped the van off at the Lyon airport. It had sustained serious body damage but we were completely covered by the insurance. In fact, the drop-off procedure didn’t include an inspection. When we told the attendent about the damage, she just smiled, took the keys and wished us “bon voyage”. It was painless.
A Final Question:
We’ve also heard that some tourists buy a used car upon arrival and sell it when they leave. If you have any experience with this, we’d love to hear it.
Perfect timing! I am supposed to book a car next week. Great site…thanks.
Awesome, thanks for the tip!
When I was in Australia for 4 months, I bought a car. It cost $1850 plus about $100 for insurance. After the 4 months (and only 1 minor repair), I sold the car for $2800. I managed that due to the fact that I arrived in the off-season and left in peak season. I would highly recommend doing it because it gives you all the freedom. In fact, we did 18,000km that trip.
@ Paul - Thanks for the great info. I hope more people who have done that around the world chime in with their stories. Thanks for getting the ball rolling.
Those prices quoted above are very high. 3,600 (is that USD or Peso?) to rent plus insurance? Many credit cards include auto insurance when you pay with that card, and I have never seen a car rental that price anywhere in Europe. (and I live in Europe)
@Jeff - Those prices in dollars and are high because it’s a Van and it’s a for 30 days. I used it as an example because it is what we got for our family. Standard sized cars are much less.
Ok, now I get it. You’re supposed to lease the van in the picture. Other than that, there is nothing wrong with it.
Thanks for the tip.
I leased a new 2007 Peugeot 407 wagon for my European vacation and everything worked out perfect. We picked up our car in Munich and dropped it off in Madrid (although had a bit of trouble finding the Madrid office). The other advantage is that we were able to get a diesel, saving a ton of money on gas (gas is extraordinarily expensive in Europe; more than double US prices). When I called rental places, they didn’t seem to be able to guarantee a diesel, so this was another big plus– better mileage, cheaper fuel. And the zero deductible insurance left us without a worry. All in all, I would highly recommend this for anyone staying about 3 weeks or longer.
@Brandon - I forgot about the fuel aspect. Like you, we also opted for a diesel. Thanks for making this point. It’s a very important one.
Quote: “You CANNOT be a citizen of the European Union, although you can be an EU expat living outside Europe currently.”
If you are an expat living outside Europe currently, you are still a citizen of the European Union. Maybe you mean you CANNOT be a RESIDENT of the European Union?
can the same be done with touring motorcycles?
$15K CDN value BMW touring bikes? for example?
@Adam - Since this is a way for French Auto makers to avoid charging sales tax, I would think a French Motorcycle company might do the same thing. It’s not a BMW, but a place to look.
Author of this article doesn’t know the meaning of 50%.
Hi.
Great tip. However you can book a mini van at any of the rental car companies through their USA websites and get an USA price.
The average 29 days fee is about $1500. Third party insurance is included. The remaining liability insurance will add $500 for the period. However most credit cards provide this insurance.
I am used to use Sixt.com, works great for me.
@Mario - Thanks for the tip on Sixt.com. I’ve heard good things about them. If you’re staying for less than 17 days, I’d definitely check them out. Otherwise, we prefer leasing since we avoid extra driver fees and get a guaranteed diesel motor…a real money saver.
I sure hope you’ll stop by FamilyHack again and share more terrific tips that others can use.
Thanks again,
Michael
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