2023-07-08 04:21:13
It is an alternative to auto credit. Formerly called “leasing”, the LLD, long-term rental allows you to rent a vehicle for a fixed period. Often cheaper than a loan, the LLD is well known to New Caledonian companies, and too little to individuals. Many visitors discovered the concept at the motor show.
Yvan Avril, Claude Lindor and Lizzie Carboni • Published on July 8, 2023 at 3:21 p.m., updated on July 8, 2023 at 3:27 p.m.
At the motor show, which takes place until Sunday on the side of Païta, many come to inquire regarding the purchase of a vehicle; others discover new possibilities for obtaining a new car. This is particularly the principle of long-term rental. Here’s what you need to know.
The principle is simple: pay a fixed amount every month to drive in a new vehicle, but for a limited period of time. The formula is no different from a monthly payment for a car, except that it does not belong to the payer. And in Caledonia, we like property rights. This is why long-term rental is struggling to break through with individuals.
Yet this concept, popular in France, has evolved a lot in recent years. “Long-term rental is well known to New Caledonian companies” specifies Alexis Bertoux, employee of a company specializing in LLD.
The contracts are limited in time, they vary between two and five years. “Here in New Caledonia, not everyone can pay cash for a car, so it’s interesting” confides a visitor to the motor show.
For industry professionals, “it’s a solution that allows you to control your budget, to have associated services such as insurance, maintenance, tires… a whole multitude of services that you might have unlike a conventional loan ” explains Alexis Bertoux.
Another advantage: drive with a new vehicle regularly with the possibility of returning it and leaving for another, as soon as the contract ends.
If the vehicle is returned before the end of the rental contract, there are penalties. This is why, according to professionals, you have to choose your type of contract carefully. “If we intend to stay there, we can choose the longest duration. If, on the other hand, we are not sure if we want to land, we really have to choose” says Morgane Yanaï, account manager in a long-term rental company.
Moreover, with the electronic components present in the latest car models, the car can lose its reliability and therefore its value in the long run.
The report by Yvan Avril and Claude Lindor.
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