If you're planning a driving trip through Europe late this summer or fall, take a good look at a "French lease." Rates for a plain vanilla subcompact start at $499 for the minimum 17-day period, but a sale price of $699 for a compact with both air conditioning and automatic transmission is a better deal. An added advantage for senior drivers is that there's no maximum age limit.

I find it amazing to see how inexpensive air conditioning has become in Europe. When I first started renting cars in Europe, I could find air conditioning only in the top models such as Mercedes-Benz and Rover. Now, however, it's available as an inexpensive option on even economy cars. Automatics, too, are becoming less expensive, although they still add more than air.

Lease rates include tax, full liability insurance and full zero-deductible collision insurance. You can pick up and return the car at any of several locations in France. Pickup and return at cities elsewhere in Europe are available.

The French lease has been around for many years, and it's often touted as a spectacular deal, In my book, those gushing reports are a bit overdone. On an ordinary 17-day rental, for example, a leading European car-rental company quoted a base rate of $465 for an economy two door, including tax - a bit less than Renault's lease rate. However, the rental company's "inclusive" 17-day rate of $648, bundling tax and insurance, was considerably higher than the lease cost. Normally, I don't buy insurance and instead rely on my charge card for collision coverage. However, given the choice between a no-insurance rental of $465 and a full-insurance lease of $499, I think I'd go with the lease.

I've written before that some companies in Europe impose a maximum age limit — usually 70 years — on rental-car drivers. If, like me, you're over 70, the lease is a big advantage. It's also a good idea for your grandkids; there's no 25-year minimum age or surcharge for drivers age 18-25.

Excerpts from Buy a Car Instead of Renting in France by Ed Perkins,
The San Francisco Chronicle, August 12, 2001.