Rental guides
Long-term rental: how it works and what the monthly fee includes
Term, mileage, deposit and services: the practical guide to understanding what you really pay for with long-term rental.
Long-term rental is a contract under which you use a new vehicle for a period that usually ranges from 24 to 60 months, paying a fixed monthly fee. At the end you return the vehicle and can choose another one. You don't buy the car: you pay for its use, together with the services that make it ready to drive.
What the monthly fee includes
What the monthly fee includes varies from offer to offer, but in most cases it covers:
- registration and road-ready preparation;
- third-party motor insurance;
- routine and non-routine maintenance at the partner network;
- roadside assistance;
- road tax (vehicle tax).
Other cover, such as kasko, theft and fire, tyre changes e replacement vehicle, can be included or added. For this reason, before comparing two monthly fees, it is always worth checking that they include the same services.
The four parameters that make up the price
Duration
A longer term spreads the cost over more months and lowers the instalment, but ties you in for longer. The most popular terms are 36 and 48 months.
Kilometres
You state how many kilometres you expect to drive each year. If you exceed them by the end of the contract, you pay for the excess kilometres under the terms set out. It is best to estimate them with a small margin.
Deposit
It is optional. A higher deposit reduces the monthly fee; with no deposit you keep your cash flow but the instalment goes up.
Services
Lower excesses, winter tyres or a replacement vehicle increase the monthly fee but reduce the unexpected.
How you get to the contract
Once the vehicle is chosen, the rental company assesses the customer's profile using the required documents: for an individual, usually an identity document, tax code, driving licence and proof of income; for a company, a chamber of commerce report and financial statements. If the outcome is positive, the contract is signed and delivery is arranged.
The advice
Don't stop at the lowest monthly fee. Compare the total cost (monthly fee for the months plus the deposit) and the services included. On RentalZone you can configure term, kilometres and deposit and see straight away how the monthly fee changes, then receive the final proposal from a consultant.
