The little-known option that saves you thousands on car hire in Europe

If the cost of car hire in Europe makes you wince, there’s another option. It’s called buyback leasing, and despite the clunky name, it’s a straightforward process.

On a recent road trip through Europe, I “bought” a brand-new car, drove it across six borders with full insurance, then “sold” it back at the end, with a smashed tail light, I might add.

How buy-back leasing works

The idea is simple. Instead of renting a car, non-European visitors can buy a brand-new one for the duration of their trip, then sell it back at a fixed price at the end. The scheme has been around for decades, originally designed to encourage long-stay tourism, yet it remains a little-known loophole for many travellers.

It’s most commonly offered by French car manufacturers, and the vehicle is registered as a special tax-free tourist car, which comes with generous inclusions and far fewer hidden costs.

What it looks like on the road

For our trip, I booked a brand-new Citroen C5 Aircross automatic for 30 days. We collected it at the airport in Lyon with zero kilometres on the clock, fresh from the factory floor. There were three drivers (my husband Mak, our friend Jack and me), and there were no extra charges for additional drivers, something traditional rentals almost always charge for.

Booking the car felt no different to a standard hire. I used Drive Away, though you can also book directly through manufacturers like Peugeot or Citroen. You choose your model, lock in the dates, then pick up and drop off in major cities including Paris, Lyon, Frankfurt and Rome. We picked up the car in Lyon and dropped it off in Paris at no extra cost, though some cities have return fees.

The cost breakdown

Breaking it down: through Europcar, a similar itinerary with a comparable car came in at $2843.88. Adding an extra driver cost $260.38, roadside assistance $273.66, and insurance another $869.43. Optional cover for windscreens, lights and tyres was $559.25, plus a mandatory cross-border fee of $64.12. And because we were driving into Slovenia, additional fees would apply. All up, that’s already $4870.

With buyback leasing, I paid $2440 in total. That covered unlimited kilometres, full insurance with zero excess, additional drivers, 24-hour roadside assistance and personal accident insurance. No upselling. No fine print panic at the counter.

Part-way through the trip, our friend Jack reversed into a tree, cracking a rear tail light. One phone call later, it was logged. At drop-off, I handed over the keys, signed a single form and walked away without paying a cent.

Another unexpected benefit was flexibility. When we shortened the driving part of the trip to spend more time in Paris, we returned the car early and were refunded ($600) for the unused days.

Is it right for you?

Buyback leasing isn’t ideal for short trips, as there’s usually a minimum rental period (from 17 days), and it’s only available to travellers who live outside Europe. But for families or anyone planning a multi-country road trip of a few weeks or more, it’s one of the easiest and most affordable ways to drive through Europe.

See driveaway.com.au or citroeneuropass.com.au

The writer travelled at her own expense.