Why Buyback Can Be a Cheaper Way to Rent a Car in Europe
Back in 2020, many car rental companies got rid of a large part of their rental fleet. Now that demand is rising and supply is shrinking, car rental prices are often astronomical (not to mention how much you spend on gas to fill up a tank). However, when you’re traveling in Europe, you have another option: car rental buyback programs.
The buyout you make under these programs is a customs and tax provision that allows non-EU residents to “buy” a new car while in Europe without paying customs duties and value added tax (VAT). . The car can then be sold as lightly used to an EU resident, and they will also not have to pay VAT (which, for example, in France is about 20%).
The exact details of your lease may vary, but in general you can expect the following:
- Minimum requirement of the day (usually about three weeks)
- Completely new
- Guaranteed rental price in USD or EUR
- Unlimited mileage
- No deductible insurance and fewer restrictions for additional drivers
- Help on the road
Additional fees may apply depending on where you pick up and drop off your vehicle in Europe. Renault, Pugeot and Citroen are the two leading manufacturers offering this option. In addition to getting a brand new car and not having to pay extra for insurance, additional driver fees, or under 25 fees, these buyback programs can even be cheaper than renting from traditional car rental companies.
For example, renting an economy car (Renault Clio or similar) from Hertz from September 15th to October 15th, with collection and return at Paris Charles de Gaulle Airport, will cost around 900 euros (excluding insurance or driver surcharges). Instead, if you book a Renault DACIA Duster lease with a buyout, you will pay 1470 euros for the same dates, including insurance and the ability to drive your car by other people. In this case, renting with Hertz will probably be cheaper even with additional fees if you are comfortable with an economical car; however, if you are already paying additional fees for insurance or an additional diver, the difference in the cost of renting a new midsize SUV may not be significant.
Keep in mind that, as with traditional car rental companies, the availability of cars under buyback programs is limited, so if you are interested in this option for your trip to Europe, you should consider your options right away. Finding a car at the last minute will be next to impossible, and even unlikely in the weeks leading up to your trip.