Car Rental Alternatives in Ireland

Driving in Ireland

For anyone who will be in visiting Ireland as part of a European trip lasting 17 days or more, a short term lease and buy-back can be an extremely cost effective alternative to car rental. And there are other advantages over rental as well.

The reason for the existance of this scheme is interesting.

In France the tax on a second hand car is a lot less than on a new one, which creates a very big demand for 'nearly new' cars. In order to service this demand some car manufacturers got together with rental companies and came up with short-term leasing and buy-back. This generates a supply of nearly new cars which are leased for a short time, bought back and then sold to the car rental company. Because the cars are now second hand, the lower rate of tax applies to that sale.

Thus the manufacturer benefits by offering cars at a competitive price to big customers, the car rental company pays less tax on its purchases and you get a terrific deal on a brand new car for your stay in Europe. How great is that?

How it does it work?

In practice leasing involves little more than completing the sort of paperwork you would with renting a car. Because the car rental companies handle the supply of cars it has been made very straightforward for the end user, with pick-up and drop-off locations the same as for any rental car. Basically this is the deal:

Instead of renting a car, you enter into a short term lease purchase agreement.
The period of the lease can be anything from 17-175 days.
At the end of that period the car is bought back from you.

What are the advantages?

Short-term leases are exempt from VAT (tax), which would normally be 21% on a rented car, so you save money.
Fully comprehensive insurance and 24 hour roadside assistance is included with the lease. No need to buy any additional insurance or waivers
You car will be brand new and straight from the factory
The minimum age is 18 and there is no maximum age, in contrast to car rental where those over 70 or under 21 may have problems
Cars can be picked up in one country and dropped off in a different country

What are the disadvantages?

If you are only going to be in Ireland, this is not be the choice for you. Ireland as a pick-up or drop-off location is not available as standard, so additional fees will apply, in fact this is the case with any country other than France.

For those planning to travel in mainland Europe as well as Ireland the best tactic is to pick up and drop off in France, planning your stay in that way in advance pays dividends. There are a range of regular car ferry services between Ireland, the UK and France so taking a car from country to country is easy.

Can anyone lease a car this way?

To enter into a lease and buy back scheme in Europe you must be resident outside the EU (European Union). If your employer is leasing the car for you, the company headquarters must be outside the EU.

What cars are available?

AutoEurope operate a short-term lease scheme with Peugot and Renault operate one called RenaultEurodrive.

Obviously the cars will be either Peugots or Renaults, in each case the full range of the manufacturer's cars is generally available, from small economy cars to large executive ones. And of course they will all be brand new.

Doing the Sums

How much you will save too variable to even estimate, since there are so many variables. However you can expect the weekly rate to be slightly less than it would be with rental if you refused all optional insurances and waivers, and bear in mind that the leased car will include fully comprehensive insurance.

Unless you are planning to travel outside Ireland and can start and end your trip in another country, preferrably France, check costs carefully, as the cost of getting the car to and from here may eat up all the cost advantage.

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