Rental or Buying a Car - Which is the Better Choice?

The automobile often occupies a significant division of the journal budget in office. Whether one prefer buying a new vehicle or wish to rely on rental cars, thy have to allocate budget to meet transportation needs. Most of the offices and organiation prefer car and van rentals as they are more pocket friendly. Select models like Ford Transit Custom Van Rentals to manage transportation needs. From a monetary point of view, as the two options have their advantages and disadvantages, here are some points to consider when thinking about it.

Buying or renting a professional vehicle?

To acquire a vehicle or a fleet of vehicles, companies have different financing options: cash or credit purchase or rental (long-term or leasing).
Company car rental

There are drawbacks to buying a company car:

•    Immobilization of cash, payment of capital gains tax on resale in the case of a cash purchase.
•    For these reasons, rental represents a more attractive solution in more ways than one. There are two types of rentals: LLD and leasing.

The mechanism of LLD is simple. The company undertakes to rent a vehicle for 1 to 5 years on average. It benefits from a recent and new vehicle covered by the manufacturer's warranty without having to finance it.

In fact, it only pays rent at the fixed amount and frequency (generally monthly, sometimes quarterly) based on the type of vehicle, the duration of engagement, Hiace Van Hire the annual mileage performed, and the additional options subscribed by the tenant. The budget is therefore under control, and the rents are recorded as deductible expenses.

Leasing

This formula is often assimilated to Rental with Purchase Option or LOA, which is, however, reserved for private tenants. In practice, the company chooses a vehicle and asks a credit institution to buy and rent it. The latter is the owner of the vehicle until the end of the contract. At this time, the tenant can buy the vehicle by paying the residual value, which has the advantage of being low compared to the market value of the car.

Wide choice of quality vehicles

The professional vehicle rental offer is very wide. It is up to the customer to choose the type, brand, and model. It can even request made-to-measure vehicles with specific equipment such as refrigerated utility vehicles. Vehicles are often new, regularly renewed, always reliable, and perfectly maintained. Either maintenance is entrusted to the rental company, or it is carried out in the manufacturer's network as part of the warranty. In both cases, this maintenance by approved experts is a guarantee of safety for the driver. In addition, it avoids unforeseen costs and other inconveniences caused by accidents. Finally, these recent models are more environmentally friendly, a concern for managers.

Choose a reliable rental partner for quality vans and cars. They offer best price and services to its users.

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