Rent Your Car Rather than Buy It, the Trend is Confirmed

Finance Lifestyle
Rent your car instead of buying it, the trend is confirmed in France

Buying your car by paying cash is no longer relevant. Financing it in monthly installments, via the lease with option to buy or long term, seems much more popular.

In November 2018, 171,611 new vehicles were sold in France according to the data collected by AAA Data, expert in automotive statistics. On this volume of registrations, the use of leasing represented a colossal share. Indeed, more than 45% of individuals or companies have chosen this type of financing to acquire a new car or a utility just out of factory.

Attractive arguments

In 2018, the LOA (Lease with option to buy) and LLD (Long-term lease) are more than ever entered morals . It must be said that these offers are often less expensive than a traditional bank credit. They are also more advantageous since they generally include subsidiary measures favorable to the borrowers, such as free maintenance and assistance of the vehicle, sometimes even insurance.

If these rental packages are so attractive, it is also due to the fact that the majority of builders no longer use the concept of total price for sales argument but rather marketing formulas that hit buyers, such as rent monthly, or rent by the day.

The used car also succumbs

This trade policy has clearly played a key role in the advent of this consumption trend. So much so that rental is emerging on the second hand market as well .

During the first eight months of 2018, the share of vehicles purchased under LOA or LLD in this segment increased to 1.40%. A figure that may seem ridiculous but is constantly increasing for five years , which suggests an even stronger membership in the coming years.

According to AAA Data, 51,572 used models were sold in France in LOA / LLD between January and August 2018. For the record, the 10 cars most appreciated by buyers in this mode of financing are products of the Renault brand. (Clio IV, Captur, Twingo III, Megane IV, Kadjar) but also the Nissan Qashqai, the Dacia Duster, the Peugeot 208, the Citroën C3 III and the Mercedes Class A.

The statistics also show that “buyer-renters” opt primarily for recent models (average age of 7 months at the time of purchase) and higher finishes .

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