6 Compelling Reasons Why Long-Term Car Rental Makes a Good Option for Your Business
In this day and age, the success of one company depends on countless factors whose long list keeps growing with each passing day. However, no one can deny that mobility firmly stands as one of the highest priorities. If unable to maintain nimble fleets and cover the ground effectively the companies are running a danger of causing devastating bottlenecks and delays across the board.
The other important requirement we need to keep in mind is efficiency which makes the idea of acquiring extensive business fleets very cumbersome and unsustainable.
So, is there any way we can meet both these ends and preserve mobility while keeping our fleets small and optimized? Yes, and the answer to this problem comes in the form of long-term car rental options.
Let’s see how this arrangement benefits your business in greater detail.
Loss of value practically eliminated
Owing a vehicle offers numerous benefits. However, looking at the whole issue strictly from a business perspective we will see that vehicles as a business asset have one fatal flaw – their price deprecates at a truly concerning rate. During its first year of ownership, an average car loses 20% of its original value. By the age of five, the price drops by whole 40%. That makes the task of efficient fleet management very hard. Here lies one of the greatest benefits of using long-term car rental services for a prolonged period of time – since they don’t have to deal with these concerns the companies pay solely for the performance.
Flexible contract term
Price deprecation may be one of the most obvious but it’s hardly the only concern associated with car ownership. Another drawback we would like to cover point out that vehicles are not really liquid assets so when the time comes to quickly adapt your operations to current market circumstances you usually have a very hard time scaling down and retrieving the invested capital. On the other hand, car rentals usually offer very flexible contract terms that allow you a plethora of options when it comes to the length, scale, and type of the lease. You also have the benefit of a number of different termination clauses.
Maintenance made simple
Finally, let us quickly touch upon the topic of maintenance that, coupled with the previous two examples makes the most critical car fleet ownership challenges you can find. So, as you can probably expect the rental options effectively move this issue off the table. This fact gains even greater significance if you are going to use cars in a harsh and taxing environment. If you, for instance, need to take a trip across the Australian outback, you can find a professional long-term car rental in Sydney or another nearby city, run your errands and return the vehicle when you are done. That takes a lot of pressure off your shoulders.
An excellent choice of different vehicles
Running a business presents a wide variety of different business fleet challenges. Business owners usually try to address these issues by acquiring vehicles that will be capable of tackling the widest possible set of tasks. That usually entails big vehicles that waste a lot of resources when applied to smaller-scale tasks. Due to this discrepancy companies tend to waste a lot of resources, especially in the long run. The car rental services are capable of solving this problem with near-surgical precisions since the choice of the available vehicle gives you an option to always get what you need, when you need it the most.
Simpler financial planning and risk management
Due to the maintenance costs and deprecation, we have covered earlier in this article, the TCO (Total Cost of Ownership) tends to swing in widely unpredictable directions. That makes any sensible effort of financial planning and even risk management needlessly hard. Since they are operating under previously agreed on terms and feature precise upfront rental prices the vehicle rental deals go a long way in making this situation much clearer. Also, since business owners can rely on comprehensive customer care and replacement vehicles they are also capable of engaging in much more effective risk management.
Excellent customer support and guidance
Last but not least, we would like to point out that the customer care and support you get from car rental companies is not limited strictly to making sure the vehicle you get is free from defects. The lease agents are there to help you pick the vehicle you need, provide guidelines for effective usage, negotiate the most favorable deal, and go through a troubleshooting process if you experience further down the road. For comparison, when you are buying the vehicles for your fleet all these critical tasks are either left to your own devices or charged by third-party service providers. So, you get a really stellar service for free.
We hope these few examples gave you a general idea about just how valuable the option of long-term car rental can be for the development of your company. The present-day business world is very taxing, fast-paced, and relentless. With things as they are, your company needs to push its mobility and flexibility as far as possible to stay competitive. Using car rental services to tackle immediate, short-term tasks won’t solve all of these problems but it definitely presents a step in the right direction.
