How does company fleet vehicle rental work and what are the advantages
How does company fleet vehicle rental work
Long-term rental of company fleet vehicles involves renting one or more vehicles for a variable period of time based on the company’s needs. Companies and VAT holders enter into a contract with a rental company after having agreed on the expected duration and mileage.
The contract includes fixed monthly fees that usually include a series of additional services, such as:
– full insurance coverage
– set-up
– ordinary and extraordinary maintenance
– 24/7 roadside assistance and rescue
– management of bureaucratic and administrative procedures (stamp duty, registration and road tax)
– delivery of the vehicle
Other additional services can be agreed upon, such as a replacement car and tire changes.
The fixed amount of the installments has the advantage of making practically all costs relating to the company fleet predictable, with the exception of fuel costs. The amount is estimated based on various factors such as the car model, optional extras, contract duration, expected mileage and any additional services.
What are the advantages of vehicle rental for the company fleet?
The main advantages of vehicle rental are:
– wide availability of brands and models to choose from
– outsourcing of most of the fleet’s management, bureaucratic and administrative problems (employees and collaborators can be employed in other tasks more closely related to the company’s business)
– VAT deduction from the expense (rental is in all respects an expense and not an investment)
– no capital tied up and greater available liquidity
– significant simplification in cost planning
– possible contractual reparameterization with the rental company
– widespread distribution of affiliated assistance centers
Small, medium and large companies can use the services of one or more rental companies at the same time. In the latter case, the calculation of expenses becomes more dispersive and complex.
What if a company uses more than one rental company for its vehicles?
It is very common for a company to have a fleet of cars that mixes owned cars and cars rented from one or more companies. In this case, for a question of simple and effective order and control, it is useful to have a proprietary software in which to gather the data regarding expenses and consumption of the various vehicles, as well as the amounts paid to each of the rental companies after the contracts have been signed. Fleet Manager, Peritus’ customizable fleet management software is developing specific functions specifically for companies with a fleet of vehicles with both owned and rented vehicles.
The software, currently used by one of the largest Italian car manufacturers for the management of fleets for marketing events and by two well-known German car manufacturers, for the effective management of fine payments and for the optimized assignment of company cars to employees and managers, goes beyond those who produce the cars in-house to cover the needs of companies of various sectors and sizes that rent or will rent cars from third parties. It is the bright side of customization: the constant openness and the ability to adapt to the needs of different clients.
If you want to have more information and/or request a demo of Fleet Manager do not hesitate to contact us. We will do everything in our power to help you!