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Short-term rental, Long-term rental: what's the difference?

nicad 26/08/2021 714

Short-term rental, Long-term rental: what's the difference?

Short-term rental: a rental for a short period (one hour to one year)

The principle of the short-term rental

A short-term rental is carried out for a short period of time: a few hours, half a day, a day, a week, a month or a year max. This is the ideal solution to have a car for a while, when you are abroad and want to visit the area, or when you need a replacement car because yours is broken down for a few days.

You will be billed for the service offered by the rental agency.

Short-term rental: a commitment on the part of the tenant and the agency Renter Rental agency Uses the vehicle responsibly Owner of the vehicle Performs minor maintenance: tire pressure control, level control: oil level, washing machine - ice, coolant Offers insurance to the tenant as well as a rental package Informs the agency of any failure of the vehicle Ensures vehicle maintenance (oil change, tire change, etc.) Undertakes to pay the costs of repairs to case of problem Make sure the vehicle is in good condition before putting it into service (no hidden defects) How to make a short-term rental?

To rent a car for a short period, you must first choose a plan.

You must define the length of your rental contract and choose an insurance. A security deposit must be left by the tenant. And the vehicle can then be used with complete peace of mind.

The vehicle must be returned within the times defined by the contract and in good condition. Any additional delay will be charged. The vehicle must not be damaged or damaged. In the event of deterioration, repair costs will be requested.

Long-term rental: a contract signed for one to six years

Two types of Long-term rental: LOA and LLD

A long-term rental, also called leasing, is carried out for a period longer rental. The leasing contract is signed for a period of 1 to 6 years.

There are two types of long-term rental contracts: LOA (Rental with Purchase Option) and LLD (Long-Term Rental).

An LOA is a rental after which the lessee can purchase the vehicle. He will thus become the owner. The tenant therefore rents the vehicle for the period of time defined in the contract, he pays the monthly payments. At the end of the contract, if he decides to buy the vehicle, he will have to pay the residual value defined at the start of the contract and corresponding to the amount of the vehicle.

An LLD aims to rent a car for a long period.

For more information, see: What are the differences between LLD and LOA?

The leasing contract: A commitment for the tenant and the financing organization Tenant Financing organization Provide the necessary documents for the study of the solvency Study of the client's solvency (his ability to finance his vehicle in monthly installments according to its income) Maintains the vehicle Negotiation of contracts with dealerships and insurance to offer the best prices. It can get you nice cars for less than $ 200 per month. Monthly installments. Additional costs required for exceeding the mileage or repairing the vehicle Compliance with the withdrawal period Compliance with the conditions of the contract Informs the customer of the dangers in the event of non-payment of the monthly installments What does long-term rental involve?

In a leasing contract, the vehicle belongs to a financing organization. The tenant must pay monthly installments to this organization. He must also choose to subscribe for a package. The flat rate defines the type of car, the duration of the contract, the insurance taken out for the car (the financing body often requires the use of comprehensive insurance) as well as the mileage to be carried out by the vehicle.

By signing the leasing contract, you agree to pay the monthly payments owed to you for the rental period defined by the contract.

Before subscribing for a leasing contract, be vigilant because this type of contract is difficult to modify and not very adaptable to the vagaries of life (you cannot terminate your leasing contract before the expiry date without having to pay high fees)

Want to sell your car while you are under LOA? Kyump / CapCar, your trusted intermediary between individuals sells your car for you! We take care of all the administrative procedures with your funding organization. We find a buyer in just two to three weeks! So go ahead, opt for Kyump / CapCar and sell your car easily thanks to us!

Sell your car and LOA

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