Do you need to rent a car and hesitate between LLD (long-term car rental) and LOA (Rental with purchase option)? Here are tips for choosing. Each of these two types of contracts has its particularities, advantages and disadvantages. Discover them!
Long Term Rental (LLD) is a formula that consists of renting a car over a defined time ranging from 12 to 60 months. It allows you to drive a new car without breaking the bank, of course, in return for the payment of a monthly rent (known at the signing of the contract and identical each month). It can be an interesting solution for those who do not want to invest in the purchase of a new vehicle, but who want to replace their car regularly.
With this formula, the maintenance and repairs of the car, as well as its assistance in case of breakdown, are included in the lease. Mileage is limited (typically 25,000 km for a diesel car and 15,000 km for a gasoline model).
When the rental agreement comes to an end, the car in LLD is returned to the owner (renter) to be sold on the second-hand market. It must be rendered in a “state of normal wear”.
Indeed, the LLD allows the customer to use the car freely without being the owner. For the best car rental services, opting for Cancun Car Rental by City Car Rental is an ideal option for you.
The LOA (lease with option to purchase), which can also be called “leasing” is a contract to rent a vehicle before buying. Indeed, it is a rental formula that, at the end of the contract, allows the customer to become the owner of the vehicle.
However, a customer who does not want to buy the car can return it to the renter.
Unlike the LLD, maintenance, car repairs, insurance and assistance in the event of a breakdown are not included in the rental agreement.
Another special feature of the LOA: the purchase price of the vehicle is fixed at the time of signing the contract and at the same time, an initial contribution must be paid (which represents approximately 15% of the price of the vehicle). This sum will then be deducted from the final sale price.
In summary, the two types of contract are very close in their operation: they are all long-term rental formulas.
The LOA allows the renter to buy his vehicle at the end of the contract. The customer is not obliged to buy, but the price of the resale of the vehicle must be known from the signature of the contract, according to its residual value. Don’t forget that you can also book it online just the same way you book Cancun Airport Transportation by eTransfer.