The Scoop on Auto Europe’s Peugeot “Buy Back” Program

A friend who is planning a trip to France recently called to ask if I knew anything about Peugeot’s “Buy Back” program. I didn’t, but was intrigued, so I did a bit of research so I could help him with his travel arrangements. He called me yesterday from France to report that his Peugeot “Buy Back” experience went swimmingly, so I decided to pass the information on to the readers at EuropeUpClose.com.

Here’s the deal:
A Non- European Union citizen traveling to France for more than 17 days is eligible to purchase a brand new Peugeot, drive it during your vacation (as you would a rental car) and then sell the car back to the dealership.

If you are arriving at Charles de Gaulle airport, there is a Peugeot dealer nearby that will sell you one. Another option is to request to be picked up at the airport/train station/hotel to go to the nearest dealership.

What’s in it for the dealership? In France (as well as throughout Europe), there is a Value Added  Tax (VAT) that makes luxury purchases (like a car) very expensive…20% more expensive, to be exact. If dealerships sell cars that are “slightly-used,” it saves the new owner this 20% tax. Individuals who are not citizens of the European Union are not required to pay this tax, however. So, the Peugeot dealer sells you the car (without VAT) for at least 17 days, you sell it back, and then the dealership sells it to an E.U. citizen or to a rental company (with no VAT, thanks to the fact that it is pre-owned).

Price-wise, it is often less expensive to do this program than it is to rent a car. It is in the dealership’s best interest that the car is well taken care of while in the possession of its first owner, so they offer zero deductable insurance coverage and a 24-hour service hotline. In the best case scenario, everyone benefits from this program.

Positive aspects of the “Peugeot Buy Back” program:
•    You get to drive a brand new Peugeot
•    The car is fully insured (zero deductible) and you have 24/7 breakdown coverage in case anything goes wrong
•    You only have to be 18 to participate in the buy back program (versus most car rentals that require the primary driver to be at least 21)
•    You can pick up and drop off the car in different cities within France
•    You can return the car without filling up the gas tank

Other things to consider:
•    You need to have the car for at least 17 days
•    The car will usually come to you with very little fuel in it, so be sure to locate a gas station near the pick-up location
•    You will be charged extra for pick-up or drop-off outside of France

Sound good? Check it out at AutoEurope for more information.