Whether it is a vehicle or another asset, long-term rental requires some precautions.

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ISA HARSIN / SIPA

  • Long-term rental or with an option to purchase has become more democratic in recent years.

  • Affordable at first glance, it requires vigilance on the part of the consumer.

  • Certain “hidden” costs can indeed turn out to be very high.

Cars, bicycles, but also… paintings.

For those who want to use a property without owning it, it is now possible to rent almost anything and everything (see box at the end of the article).

The starting price is often an important argument, because the rental avoids having to pay too large sums at once.

You still need to have the right information before you start, because small details forgotten when signing the contract can cost you dearly in the end.

20 Minutes

helps you see more clearly.

“Leasing”, LOA, LLD, what is it exactly?

The

leasing

refers normally does to rent a property over time, with the possibility of acquiring out of contract: This is the same as the lease with option to purchase (LOA), practiced especially with cars .

Long-term rental (LLD) can also sometimes be qualified as

leasing

, which leads to confusion.

If, like the LOA, it also allows the use of a good (car, bicycle, etc.) for a rent, it is however not possible to buy it once the term of the contract has expired.

What is the point of renting rather than buying?

The LLD allows consumers to acquire a vehicle or other expensive good without having to pay upfront a large sum of money, or to contract a loan.

Most LLD contracts also include maintenance, which can make budget management easier.

Regarding the LOA, an initial contribution may be requested in addition to the first rent, and maintenance is not necessarily included.

In return, the following rents may be lower than in the context of a long-term rental.

Why do you have to be very careful?

Whether it is a car rental or other property, pay close attention to the terms of the contract before signing it.

For example, if maintenance is included, check what the term covers: some contracts provide for the change of tires, for example, while others will leave it to you.

Likewise, you are normally required to pay until the end of your commitment.

Otherwise, you risk financial penalties.

Also be careful in your use.

You must indeed return the rented property in perfect condition (illustration here for vehicles) and, in the context of a car rental, the mileage set in advance must be respected.

Otherwise, a supplement will be requested.

Another point of vigilance: the overall cost of the rental.

Not having to pay several hundred or thousand dollars at once can seem tempting, but it sometimes hides unpleasant surprises.

According to a UFC Que-Chooser survey published in 2020, LLD in household appliances can be particularly tricky for consumers.

According to their statements, a television offered at 350 euros in cash payment would cost 806 euros with a four-year LLD, an increase of 130%!

One example among others that should urge you to be careful before subscribing to such offers.

"Unlike consumer credit, long-term rental is not at all regulated," said Matthieu Robin, financial sector manager at UFC Que-Choisir.

When you take out a loan, you have very clear information on its total cost.

This is absolutely not the case for long-term rental.

In addition, no check is imposed on the consumer's creditworthiness.

It is all the more dangerous as these offers are designed to appeal to small budgets ”.

In these situations, the calculator is your best friend.

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Long-term rental or with an option to purchase is no longer reserved for vehicles.

In several cities, it is thus possible to rent bicycles over a long period.

Likewise, many brands have started renting small or large household appliances (refrigerator, smartphone, microwave, etc.).

Furniture also has its LLD, whether it is office furniture or supplies for personal accommodation.

Finally, if you have the soul of an artist, it is also possible to rent works of art (paintings, sculptures, etc.) to embellish your interior.

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