this alternative is attracting more and more people!

The car is, for many households, a tool both for leisure and to facilitate their daily lives. However, the most reliable models today seem to cost more and more. Subscribing to a car loan is therefore the preferred solution for many French people who cannot afford their vehicle in one go.. In this sense, instead of going to the banks, it is possible to opt for the LOA or rental with option to buy. A method of acquisition that has its advantages but also its disadvantages, especially with the measures taken to protect the planet.

Entry into force from July 1, 2022

La LOA ou rental with option to buy is a rather easy principle to understand. Also called leasing, it has some similarities with a ready for consumption, with a few differences. It is a question here of renting a car, with the possibility, after a certain time, of becoming its definitive owner. This applies to both new and used vehicles..

The LOA is then very different from the LLD or long-term rental, not providing for a buy-back contract at the end. Several types of specialized brands now offer this type of device. Dealerships are obviously the leaders in leasing. Almost all brands or manufacturers are now concerned.

Otherwise, organizations are never far away when it comes to rent-to-own. Indeed, it works with car distributors in the development of leasing offers. Banks are also not left out and can even be contacted directly. The conditions thus vary according to the chosen supplier.

The main advantages of the LOA

Several advantages can be drawn from leasing with option to buy, compared to a classic car loan. First of all, it is a question of flexibility. Indeed, once the contract comes to an end, it is possible for the subscriber to turn to another car model, why not more recent. The choices of brands or years of production are currently extremely wide.

The main advantages of the LOA

In addition, an LOA is a more economical solution than a conventional bank loan, especially with regard to the amount of monthly payments. Moreover, even if a purchase option is available, it will not be mandatory to exercise it. Apart from that, the brands specializing in the subject do not require a very significant initial contribution. What open the door a little more to households wishing to drive in a quality vehicle, without hurting their wallet.

Moreover, as long as the rent is paid, the car cannot be seized. It cannot be used as a guarantee to pay off debts and other problems of this type.

End of thermal engine cars by 2035

Lease-to-buy-out may be a first choice solution at a time when doubts remain about future restrictions on fossil fuels. Households have no interest in directly buying a car that could not be banned in a few years. Although heat engines will not disappear overnight, those who still use them could be increasingly penalized.

The European Parliament has also passed a law providing for the end of the marketing of vehicles that still run on hydrocarbons in 2035.

Turning to the LOA makes it possible to anticipate this type of upheaval. The possibility of switching to much more environmentally friendly cars at the end of his contract will be a significant asset. This will make it easier to access cleaner models.