The long-term car rental in Italy is a market that continues to grow year after year, thanks to a formula that appeals to both companies and freelancers, as well as private individuals. According to Aniasa, the Association representing companies in the sector within Confindustria, this formula has reached 160,000 private customers, with a turnover of 811 million euros, accounting for 11% of the Italian market, while the entire sector exceeded 10 billion euros in 2023.
There are several reasons for the success of long-term rentals in our country. First and foremost is the convenience of a formula where all expenses are included in the monthly fee (insurance, roadside assistance, maintenance, etc.), with the exception of the road tax which, as established by Dl 124/2019, is the responsibility of the lessee.
Secondly, with long-term rental, you don’t have to worry about many tasks, such as purchasing the vehicle, potential theft, lengthy repairs, or the depreciation of the vehicle’s commercial value. It is also a customizable service, with the possibility to choose the type of car to rent and its configuration, the rental duration, the mileage to be included in the fee, the down payment, and additional services to be included in the contract.
Naturally, among the aspects underlying the success of long-term rental is also the economic convenience of this formula, especially when comparing its costs with those for financing the purchase of a car.
The Convenience of Long-Term Car Rental
Confirming that long-term car rental is a more convenient solution than purchasing through financing, a study by the well-known comparison portal Facile.it has also emerged. In particular, Facile.it’s analysis focused on the Volkswagen Polo, a safe and spacious city car for urban mobility. Specifically, to buy the Polo, it is necessary to spend 4,700 euros for the down payment and 295 euros per month for 36 months. To these costs for purchase with financing, one must add maintenance expenses, quantified at 1,771 euros for the RCA policy, 3,150 euros for vehicle damage insurance, 80 euros for the inspection, 600 euros for routine servicing, and 1,500 euros for extraordinary maintenance.
The total cost of the car, opting for financed purchase, is 22,421 euros, after which a final balloon payment of 14,865 euros is required for definitive redemption of the vehicle after paying the 36 monthly installments. Considering that the market value of the Volkswagen Polo after 3 years and with approximately 100,000 kilometers driven is 17,820 euros, the overall expense over 3 years is 19,466 euros according to the simulation conducted in the study.
Regarding the long-term rental of the Polo, since maintenance costs are included in the fee, one only needs to consider a 4,000 euro down payment and a monthly amount of 259 euros. The total investment is therefore 13,324 euros, a significantly lower figure compared to the expense incurred with financed purchase. This allows for a saving of 6,142 euros over 3 years, in addition to all the other long-term rental benefits in terms of convenience, flexibility, and practicality.
How Long-Term Car Rental Works
The numerous benefits of long-term rental make this formula increasingly popular in Italy, both among professionals and companies, as well as private individuals. With long-term car rental, it is possible to drive a always-new car without hassle; simply choose the model that suits your needs, select the desired configuration, and order the vehicle from a car rental company. Once the vehicle is prepared by the manufacturer, the rental company proceeds with the delivery of the vehicle, with car pickup occurring at a center affiliated with the renter.
In addition to being able to rent any type of vehicle, from internal combustion engine cars to electric ones, from city cars to SUVs, to sports and luxury cars, long-term rental is a fully customizable service. Firstly, it is possible to choose a duration between 24 and 60 months, keeping in mind that with a longer contract, one can save on the fee cost. Furthermore, one can define the annual mileage to be included in the rental, potentially paying a surcharge for extra kilometers driven.
There is also the option to independently choose whether or not to make a down payment when signing the contract. This is a decision that does not affect the overall cost of the service, only impacting the amount of the monthly fee, which will be lower if a down payment is made. It is therefore the most suitable choice if you prefer the expense to be more accessible in the long run.
Conversely, renting a car with no initial down payment allows you to not deplete personal finances or family budget at the time of contract signing, thus representing a more sustainable immediate alternative, especially by relying on comparison portals like Facile.it to identify the best offers available.
One can also set the services to be included in the contract, opting for the basic package including insurance, roadside assistance, and ordinary and extraordinary maintenance, or adding extra services such as additional insurance coverage or the replacement of summer/winter tires.
At the end of the contract, you can return the car, request a renewal of the rental of the same vehicle, or if you prefer to always have a new and updated car, long-term rent another vehicle.
For private individuals, a valid ID, health card, an open-ended employment contract, and recent payslips are required, as well as a minimum age of at least 21 years. Payment can be made via direct debit from a bank account or credit card. For holders of VAT numbers and businesses, the requirements and documentation differ from those for private individuals. Moreover, these subjects can benefit from significant tax advantages on long-term rentals, specifically VAT deductibility from 40% to 100% and deductibility of rental costs up to 100% based on vehicle usage.
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