Creative Use Of Car Rentals For Business
For any business owner who needs a fleet of vehicles for deliveries or transport, the creative and economical approach is to use long term car rentals rather than purchasing and maintaining a proprietary fleet. Consider all the costs of fleet ownership, and you will quickly begin to recognize the advantages of utilizing a rental agency rather than a car dealership.
Extensive Expenses of Fleet Ownership
Until a business owner has actually owned a fleet of professional vehicles, the totality of the costs may not be easily apparent. They do add up quickly, however, and the unexpected expenses can put a business in a financial bind in very quick order.
The price of each vehicle purchase itself, of course, is a sizeable expenditure up front. Given the fact that few businesses have the ‘ready cash’ to purchase vehicles outright, the financial transaction is likely to involve a car loan with substantial amounts of interest to be paid over the life of the loan. The interest on such a loan often increases the overall cost of the car, by anywhere from one-fifth to one third of the vehicle’s sticker price.
Maintenance of fleet vehicles is another ongoing and considerable cost. The basic preventive maintenance of oil changes, tire rotation and alignment, emissions control, and service of vehicle computers are costs that have steadily increased in recent years. Add in the inevitable expenses of repairs as the need arises with individual cars, and you will quickly realize that the cost-per-mile of owning a vehicle is far higher than the simple calculation of fuel consumption.
Advantages of Using Car Rentals for Business
Rather than burdening your business budget with the ongoing and unending expenses of fleet ownership, consider the advantages of utilizing long term car rentals for your business needs. Most car rental agencies offer corporate concessions, even more deeply discounted when a long term contract is on the table.
You will be able to budget with precision, knowing that the agreed-upon rental price will not fluctuate or be subject to shifts in maintenance costs. The burdens of maintenance, repair, and unexpected expenses will remain the responsibility of the rental agency rather than your own business.
With long term car rentals, you can still enjoy the visibility of a branded fleet, thanks to the expedient use of magnetic signage, which can easily be transferred from one rented vehicle to another. If any problems arise with a particular vehicle, the hassles and costs of repair or replacement will not be your worry. The rental agency will provide you with an alternate auto, and you will not have to worry about “down time” without a working vehicle, or have to come up with the extra funds to cover unanticipated repairs.
The use of car rentals for professional purposes can save your business a great deal of money, compared to the cost of ownership and maintenance of a fleet, and you can also rest easy in the knowledge that your vehicles will not be the cause of unexpected expenses.
John is passionate about automobiles and automobile technology, and writes for Hertz rent2buy providing first time used car buyers in France with simple tips to ensure a good purchase.