Renault Eurodrive compared to normal rental ... too good to be true?
Oct 19th, 2010, 01:38 PM
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"What's in it for the car companies? I guess I don't get why they would do this."
As I understand it, this is a broad-sighted government sponsored plan to stimulate not only tourism but also the automobile industry and the economy.
Taxes have not been paid on the new car you lease (red license plates denotes this). When you return the car at the end of the lease, it is then sold as an used car which pays a much lower tax rate. The car buyer would then get a much cheaper, scarcely depreciated used car.
We were told once while returning a car in Paris, that they delivered a substantial amount of leased cars daily during the tourist season and that car buyers would line up to buy these cars.
As I understand it, this is a broad-sighted government sponsored plan to stimulate not only tourism but also the automobile industry and the economy.
Taxes have not been paid on the new car you lease (red license plates denotes this). When you return the car at the end of the lease, it is then sold as an used car which pays a much lower tax rate. The car buyer would then get a much cheaper, scarcely depreciated used car.
We were told once while returning a car in Paris, that they delivered a substantial amount of leased cars daily during the tourist season and that car buyers would line up to buy these cars.
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TxTravelPro
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Nov 21st, 2007 12:15 PM
