The Benefits of Renting
The financial advantages of renting vehicles for your business
The decision whether to rent or buy vehicles for your business can be difficult. After all, it can be argued that they are equally advantageous since the final decision hinges on the business and its particular situation. Keep reading to discover how your business can save by renting vehicles.
Make the most of your fiscal surplus: One of the biggest advantages to renting a fleet of vehicles is the amount your business can save. In fact, a smaller investment is required to rent when compared to purchasing all your company’s vehicles. A rental price locked in on contract can help reduce costs and can be recorded as a monthly business expense. Credit margins remain untouched and any money saved can then be invested in other key areas of the business. In other words, money that would have been spent purchasing and maintaining a fleet can now be used to run your business.
Save on administrative costs: Businesses that own vehicles often find themselves bogged down by paperwork. Company vehicle administrators find themselves managing several financial aspects such as taxes, licensing and registration, etc. Alternatively, management tasks, such as record-keeping and documentation, are taken care of by the renter when you rent vehicles – leaving you with more time to concentrate on the day-to-day management of your company.
Take advantage of maintenance plans: Many rental companies offer package deals including vehicle maintenance and roadside assistance. Monthly fees are charged for these packages; however, these costs can be added to the business’s monthly expense account. Furthermore, since rental vehicles are new or almost new they require a minimum of upkeep, saving you even more time.
Save with technology: Rental companies offer several tools to help clients easily manage their expenses. For example, many rental companies offer online management tools to help track vehicle costs, history, service agreements and much more. By keeping track of expenses you’ll save time and money as it’s much easier to identify and resolve issues quickly.
Benefit from fuel programs: Many rental services offer fuel programs designed to help control expenses at the pump through frequent odometer updates and cost-saving tools. Fuel programs also frequently offer preventative maintenance visits to help control costs over the long run.
Discover the financial benefits: Depending on the type of rental there are several advantages to renting corporate vehicles. A renter-rentee contract (a typical rental contract used by commercial business) means rental payments can appear as an expense on your business’ revenue declaration. (Rental commitments appear as a note at the bottom of the page of the company’s balance sheet.) Therefore, you can garner considerable fiscal advantages without such commitments impacting the business’ balance sheet. Alternatively, there are rental-acquisition contracts that indicate you as the vehicle owner for financial reasons. By assuming responsibility for the goods as well as its accompanying risks the business can claim annual amounts of depreciation and deduct interest accrued on rentals.
Develop your company’s image: Another less obvious advantage to renting a commercial fleet of vehicles is the opportunity to show off your new, reliable and appealing vehicles around town. We sometimes forget that a company’s vehicles represent the business’ image and that a bunch of old vehicles of questionable quality and appearance can often send the wrong message. An up-to-date fleet means your drivers can enjoy all the latest technology as well as improved security and savings on fuel.