The ABC of Long-term rental
Here you will find an introduction to the most important aspects of long-term rental
A long-term rental contract is an atypical rental contract. The remuneration payable by the lessor represents the consideration afforded for the right to use the long-term rental asset. The financing function coincides with the primary duty of provision for use and represents the atypical aspect of the rental contract.
The long-term rental asset remains the property of the lessor, unlike in cash purchases or hire purchases.
Although the word leasing comes from the term 'to lease', there are actually a few differences between a standard lease and long-term rental. Unlike with a lease, the leasee makes the decision to invest, which means that it is at your discretion to choose the manufacturer, model and vehicle features. A lease and long-term rental both mean the provision of use for a certain period, however, another substantial difference is that in leasing, the lessee is required to pay ancillary costs, maintenance and insurance for the leased asset. This means you are entitled to handle required maintenance of your leased vehicles yourself and can also select the insurance company of your choice.
Equally, you can commission Sixt Long-term rental to manage these tasks on your behalf, for which you pay a monthly fee. This makes ancillary costs predictable and entirely transparent for you as a customer. The so-called long-term rental factor is applied to calculate the monthly rental payment, which represents the consideration afforded for the entitlement to use the vehicle. Several coefficients are used to calculate this factor, including, for example, the list price of the vehicle, any discounts or rebates applied, the annual percentage rate of charge, the residual value of the vehicle and the contractual term. Are you still uncertain whether long-term rental is a suitable alternative to purchasing a vehicle?
Click on 'Benefits of long-term rental' to find out more. We are certain that the reasons provided there will convince you to rent from Sixt!