Why You Should Rent Your Company Cars Instead

Posted on: 27 December 2019

If you run a growing business, then you know how important it is to keep your overhead costs to an absolute minimum. After all, you will be aware that the current trend is to downsize those overheads as much as possible so that your organisation can remain trim, flexible and able to change at a moment's notice. Still, you may rely on a number of salesmen who need to remain mobile to visit clients and potential customers on a daily basis. In the past, you may have equipped them with a corporate car of their own, but why should you think about a completely different approach, instead?

Handling Your Transportation

As you undoubtedly know, company cars represent a significant line item on your annual budget. You may be able to buy them at a good price from a dealership, but you've still got to account for depreciation or leasing costs and are responsible for maintenance as well.

Trimming Your Balance Sheet

In this case, why don't you think about renting your cars from a conventional car rental company that specialises in corporate car hire? Typically, you will be able to do this on a more informal basis and will not take ownership of those vehicles at any stage. This means that you will not have to carry them on your balance sheet, will not be responsible for their upkeep and won't have to deal with their depreciation.

Keeping Your Flexibility

You may find this idea to be particularly advantageous when you take on new employees. In the past, you may have had to source a car for them without knowing whether they were going to stay within your organisation. If they did not work out and you had to let them go, then that car might have been superfluous to your needs or might have had to sit unused until you found someone else. If you were to rent your vehicles instead, then you'd simply give the car back and not have to worry about those issues.

Maintaining Your Image

If you strike a good deal with a car rental company, they will give you the latest model of vehicle and make sure that it's always in first-class condition. This will help you to maintain a good impression and ensure that customers and prospects see that your people are driving around in the latest specification of vehicle.

More Information

As you can see, corporate car rental could be a much better proposition than a conventional lease or outright purchase. Talk through all the details with an agency manager to find out more about car rentals.