Avoiding the Potholes While Driving Abroad : CONSUMER: Avoiding the Potholes in Europe : Transportation: Renting, leasing or buying a vehicle in Europe is not as complicated as it may seem, but it does pay to do one’s homework first.

Should you rent, lease or buy a car (or camper/van) while exploring Europe?

That’s a perennial question for many travelers, and now that Eastern Europe has opened up, chances are more people will be motoring in these countries. They should be warned, though, that frequently roads are poor.

If you’re in the market for a new car, ordering a model in the United States through an overseas delivery program can probably result in some savings.

Audi, BMW, Jaguar, Mercedes-Benz, Peugeot, Porsche, Renault, Saab and Volvo are among those available, according to Robert Herman, president of Beverly Hills-based Europe Auto Travels (213-272-4477).

Some examples of savings provided by Herman: $3,818 on the BMW 525I, which costs $33,875 in the U.S.; $3,281 on the Volvo 240, which goes for $17,408 domestically, and more than $2,000 on the Volkswagen Camper, priced at $21,310 here. Volvo also offers you a round-trip economy air ticket to Goteborg, Sweden.

“You can save from $600 to $5,000 on an overseas delivery, depending on the make and model,” said Ed Kelemen, president of Foremost-Euro Car in Van Nuys (toll-free 800-272-3299). “The more expensive the car, the higher the savings.”

Comparison shopping is still the key, according to Barbara Mitchell, regional manager of Los Angeles-based Europe by Car (800-252 9401). “Some buyers believe that you can no longer buy in Europe. While there are fewer bargains, you can still do well on some models. One should still compare prices.”

Most companies include shipment, marine insurance and U.S. Customs import duty as part of the deal. You can pick your new car up at the European factory where it’s manufactured, or possibly in other cities, depending on the model and make of the car.

Issues may vary from company to company: insurance in Europe, shipping, customs duty and other fees; pick-up points involved for taking possession of your car; where to drop the car for shipment to the United States, and inland delivery from port of disembarkation to your dealer. Make sure the auto has been manufactured to satisfy United States and California safety and emission laws.

Leasing a car may be the most economical course for extended periods, such as three weeks or longer, if you aren’t in the market for a new car. Generally, the longer the lease the greater the savings. At the end of the lease you may buy the car if you wish. Warning: A principal reason why few people buy lease cars is because they fail to meet U.S. specifications.

Travelers should recognize that a true lease means they get a new, tax-free car, while a long-term rental can involve a used car, added Kelemen.

“You have to check the specific package to see if taxes, insurance and collision damage waiver are included if it’s not a tax-free lease,” Mitchell said. “Paris and Brussels are the two main places for tax-free leases. Additionally, long-term rental isn’t available everywhere. Another point: rentals are more expensive.”

Whether it’s a tax-free lease or long-term rental, rates include unlimited mileage. Check to be sure if you can return the leased car to a different location without paying a drop-off charge, which can be costly. Fuel is also an extra expense.

The usual process is to sign a purchase-repurchase agreement for your lease prior to going to Europe. You also sign a promissory note for the value of the car (the note is returned to you at the end of the lease period).

But most travelers still rent. Before renting, check to see if your airline has a tie-in with a car-rental company offering complimentary rentals or reduced rates while you’re abroad.

These tie-ins tend to be available during the off-season and may involve two people flying and driving together. For example, if you fly Lufthansa to Frankfurt before March 31, you can get a complimentary Avis rental car for one week. Kemwel Rental Car (800-468-0468) often has such tie-ins with airlines.

Rail and drive passes present another opportunity. For example, French Rail and Hertz have a program combining rail and car travel throughout Europe. This EurailDrive Pass offers any seven days of travel within a 21-day period, with three of these days useable for car travel. The three car days can be consecutive or not.

The pass, which costs $299 per person, is for two people traveling together with the car in all of the countries covered by the standard Eurailpass (except Hungary).

Unlimited mileage is included, as well as free drop-off privileges as long as drop-off is in the same country. Local taxes are also covered by the price of the pass, which has to be bought in the United States.

You can buy five extra car-rental days at $40 a day during the original booking, but they must be used within the 21-day period.

Avis and French Rail have seven- and 15-day rail-drive programs strictly for France. The seven-day pass allows three days of rental-car use within a 15-day period (four days of rail travel).

If you use first-class rail, the cost is $199; second-class rail is $149. The 15-day pass allows six days of car-rental use and nine days rail travel during a one-month period. The cost of the rail portion, if first-class, is $329; second-class rail is $279.

The offer includes unlimited mileage, the value-added tax (high in France) and free drop-off at any Avis station in France. Both passes have to be bought in the United States, with two people traveling together. One new change to be aware of is that some car-rental companies--Hertz and Avis are key examples--are no longer offering optional collision damage waiver coverage on some of their programs.

As of April 1, Hertz will drop its optional CDW coverage for travelers who rent cars at its 1990 Affordable Europe weekly rates, while Avis is eliminating any liability on the part of consumers who rent a car in Europe through its Super Value program.

The cost of rentals, though, will reflect these changes. Hertz, for example, indicated there will be an average price increase of about 8% to offset revenue lost from not selling CDW.

Hertz has also added Bulgaria, Czechoslovakia and Hungary to its Affordable Europe program in 1990. Overall, this program offers weekly rates in 23 countries from April 1 through Oct. 14, with rates guaranteed in the local currency in which the rental originates.

Some samples of weekly rates offered by Hertz (prices can vary, due to currency fluctuation): $151 U.S. in Portugal, $168 in Hungary and $188 in Belgium and Switzerland. Hertz also offers free drop-off between five major gateway cities in Europe: Amsterdam, Brussels, Dusseldorf, Frankfurt and Luxembourg.

Because the amount of the VAT on car rentals differs from country to country, it’s a good idea to check on this in advance. Communications programs have also been widened to help car renters.

For example, Avis Europe has a round-the-clock message center in Great Britain that’s free to anyone renting an Avis car there. Avis is also offering toll-free numbers in major European countries, with English-speaking persons providing advice on any travel-related subject.

Hertz also offers a “Travel Companion” route-planning service that will provide directions to up to 10 places the renter plans to visit, distance to the next town, points of interest en route and location of Hertz offices along the way.

If you want to splurge, you can also get a car with a chauffeur. Hertz, for example, has a new offering this year of chauffeur services in 18 European countries.

Regardless of whether you rent, lease or buy, make your arrangements in the United States and allow ample time.

“Figure on about three months for setting up an overseas car delivery and six weeks to two months for leasing,” Foremost-Euro Car’s Kelemen said.