Full-service leasing and long-term car rental are seemingly similar services, but in fact they differ in several nuances. How to decide which one is right for you is discussed by Olgert Tamm, head of the Avis Estonian leasing department, and Raili Rits, long-term car rental specialist.
Period and flexibility
In short, full-service leasing is a tailor-made solution, where the monthly payment for the vehicle includes, in addition to leasing and insurance, also maintenance, tire changes, and car washes – all according to the customer’s wishes. All of the above, except for car washes, are also included with Avis Flex long-term car rental.
The main difference between full-service leasing and car rental is flexibility and the length of the rental period. “For leasing, the average period is 3–4 years, but for renting, it is between 6–12 months,” says Tamm.
Long-term car rental is also much more flexible. “The customer can even change the car every month. One month an Audi, the next a BMW. It’s a good opportunity to try out different cars,” says Rits. “However, leasing comes with a long-term commitment and the customer must be sure before signing the contract that they really like the vehicle they are leasing.”
When it comes to renting, it’s simple: the customer has only one option – they simply have to return the car to Avis at the end of the period. But with leasing, the customer can choose between three options: buy the vehicle, return it to Avis, or lease a new four-wheeler that they like.
One complements the other
Full-service leasing and car rental work together like a symbiosis. There is close communication between the two departments, and one service constantly supports the other. “It often happens that a client drives a rental car for several months and starts to like it so much that they decide to take it on a full-service lease,” says Rits, adding that the leasing price is generally cheaper than the rental price and is more reasonable for the client in the long run.
However, Tamm says that if a customer only wants to use the car for half a year, their request will be forwarded to the rental department. “We always find the best solution for the customer,” he adds.
A big plus with a rental is that the vehicle is immediately available. “Our fleet has over 60 vehicles and options for every taste. There are both small vehicles and premium SUVs. Most of the time, the customer receives the car on the same day,” Rits points out the advantages of renting and adds that the Flex fleet vehicles are a maximum of 1–2 years old.
With full-service leasing, you can receive the vehicle you like in 1–6 months, and in the case of a warehouse vehicle in a couple of weeks. According to Rits, it is common for a customer to drive a rental car until the vehicle they have chosen arrives. Maybe if you need a car right away, but can’t find a suitable one in the rental fleet, you can make a compromise: while the factory is making the vehicle, you can drive around with the rental car and later with the car that is exactly “the right one”.
Everything is possible
Rits says that Avis is very customer-oriented and different agreements can always be made. “Our rental fleet is located in Tallinn, but for an additional fee we can even take the vehicle to Võru for the customer,” he specifies and adds that if desired, the rental car can also be left in Latvia or Lithuania.
Similar to full-service leasing, long-term car rental comes with Avis’ convenient car assistance. “The customer can order a tow truck digitally and see on the map how far the tow truck driver is – just as convenient as ordering an app taxi,” says Tamm. The service operates in Estonia and elsewhere in Europe.
It is also possible to use Avis’ digital claims handling. If a small “scratch” happened in the parking lot, it can be conveniently formalized over the phone. According to Tamme, this saves 75 percent of the car owner’s time.
When booking a car, you can conveniently choose the rental period, deductible, and mileage you like.
But which one is right for me?
According to Tamme, the choice between full-service leasing and rental largely comes down to the type of person. “For example, some people don’t want to commit to a long-term commitment,” he thinks. “Leasing is long and binding, while renting is a short-term and more flexible solution.”
Rits adds that long-term car rental is used, for example, by companies whose team has a new employee, but are not yet sure how the cooperation will go. “Even those who are only in Estonia for the summer are happy to rent. In short, full-service car rental is suitable for those who need a vehicle temporarily for a longer period or who are not yet sure that they want to lease a certain vechile.
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