Renting a car in Europe is often anything but cheap. The base rental rate on car hire is high and picking the rental car up at an airport or train station adds further fees and taxes in many European countries. Adding fully comprehensive insurance may well double the price of hiring a car. However, tourists can enjoy big savings on car rental by leasing, rather than hire a new Renault, Peugeot, or Citroën car in France for the duration of a European holiday.
Save on Car Hire in Europe by Leasing a New Car in France
Non-European residents traveling to Europe for pleasure (not business or work) may lease a brand-new car in France tax-free for up to six months. This allows tourists to enjoy a brand new car at much cheaper car hire rates than a standard rental car would be in Europe.
This tax-free car leasing plan for tourists to Europe, often referred to as the Temporary Transit or TT formula, is supported by the French government. The actual car may be picked up in several European cities and not only in France itself – in fact, visiting France itself during the vacation is entirely optional.
The French Tax-Free Auto Lease Scheme for Tourists
The tax-free car leasing program in France is available only through the top three French car manufacturers operating independently under different names but with very similar conditions and prices. Peugeot refers to the plan as Peugeot Open Europe, Renault prefers Renault Eurodrive, while Citroën uses Citroën Euro Pass. Special deals are often available making comparative shopping worth the effort.
Rather than renting an unknown car in a specific car size category, participants in the tax-free auto lease scheme reserve a specific car make, model, engine, and comfort level. The cars are always brand new and as Peugeot, Renault, and Citroën have to sell the cars after the initial lease the cars are always in popular colors and with high equipment levels. It is usually not possible to specify any further options but air-conditioning, radios, and safety equipment are almost always standard.
Advantages of the Tax-Free Lease Scheme over Car Rental
There are several advantages of the French tax-free auto lease program for tourists over standard car rental. In addition to often being cheaper than standard car hire, further advantages of the program include:
- Quoted rates are all inclusive with full comprehensive insurance without a surcharge for further drivers as long as they are direct family members.
- Younger drivers (usually 18 years) pay no insurance surcharges.
- The order is for a specific car, i.e. the specific make, model, engine, and comfort level.
- The longer the lease, the better the rate compares with standard car rental.
- Mileage is unlimited although the lessee is generally responsible for car services from the second scheduled service onwards (seldom needed when on a normal vacation).
Special Conditions of the Tax-Free Auto Lease in Europe
There is no real catch or disadvantage to the Temporary Transit formula although the scheme is less flexible than standard car rental contracts. Some notable restrictions – which are non-negotiable – include:
- The minimum lease period is usually 17 days.
- The car needs to be ordered a few weeks in advance – some agencies insist on four weeks minimum although as short a period as two weeks is sometimes acceptable, especially when picking up the car in Paris.
- The full payment is due in advance at time of reservation.
- Delivery in France is free with a small surcharge in other European countries.
- Deliveries are only possible at a limited number of main airports and stations but the entire manufacturer network provides warrantee back up throughout Europe.
- Delivery dates are less flexible than with car hire but can be adjusted with a few days notice.
- Extending the contract after the initial payment can result in a per day rate for the extension period double what it would have been if the lease was originally made longer at the time of reservation.
- Only non-European residents may drive the car. (European nationals should carry proof of foreign residency.)
- Only direct family members may drive the car – optional insurance for non-family drivers is not available.
Save by Booking a Tax-Free Car Lease rather than Auto Hire
Booking a tax-free car lease usually has to be done by the specific appointed agent of Peugeot, Renault, and Citroën in individual countries. Usually, the local car franchisee will handle the lease but in countries where the manufacturers are not present, a special representative may have to be contacted.
Price guidelines are generally available online but specific quotations usually have to be requested and processed manually, as the availability of specific cars depends on manufacturing schedules. Response times are fast and worth the few hours wait. Similarly, reservations are usually not completely done on the Internet with some paperwork needed to be signed in person.
The French tax-free car lease scheme is a great savings option for tourists visiting Europe for longer than 17 days. Driving in Europe is not particularly challenging although visitors should note country-specific regulations such as the Low-Emission Zones in German cities and compulsory highway Vignette stickers that must be affixed to windshields in countries such as Switzerland and Austria.
Henk Bekker - Henk Bekker is a freelance travel writer currently living on the shores of Lake Geneva in Switzerland.
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