Published on : 29 January 20203 min reading time
Thanks to the various service providers specialising in car hire, professionals are no longer obliged to invest in a specific vehicle for the smooth running of their activities. The proposed formulas are customizable, being able to satisfy all expectations. But is it really a profitable solution?
The different car rental formulas for professionals
Rental agencies offer four rental formulas to professionals. Car-cartage is the most common. It is a very short-term rental, by the hour or by the day. This option is more economical because all charges are included in the price. Moreover, it is a flexible solution. On the other hand, the short-term professional car rental meets the specific needs of the company, for a period of 1 to 3 months. The medium-term rental, on the other hand, is suitable for professionals with longer-term needs, ranging from 3 months to 1 year. And finally, there is the long-term rental, spread over several years, whose fees are often paid every month.
Lease with purchase option or LOA
This option is a variant of the long-term rental. The contract can range from 2 to 5 years, giving the lessee the option to buy back the vehicle at the end of the contract. Thanks to this clause, the company will be the owner of the vehicle if it respects all the conditions of the contract. The LOA has undeniable advantages. First, the buy-back conditions are more interesting. Indeed, at the signing of the contract, the contribution is minimal, about 10% of the value of the vehicle. You then pay monthly instalments which are in many cases more interesting than the schedules of a traditional credit. At the end of the contract, if you decide to exercise the LOA option, the car will be in your name.
The advantages of car rental
Professional car rental gives business leaders peace of mind. Yes, there’s no need to hire someone to manage the fleet or to budget for additional repair and maintenance. Indeed, the lessor is obliged to provide you with a car in very good condition and well maintained and he takes care of the maintenance and assistance. In short, you know the necessary budget in advance, so there will be no surprises!
Moreover, thanks to the rental, you won’t have to allocate a large enough sum for the purchase of a car. You can invest your money in higher value-added items. Finally, the contract is customizable and revisable: duration, type of car, mileage … It’s up to you to adapt the formula according to your needs and your budget!