More and more self-employed and companies are increasingly relying on long-term rentals instead of buying, financing, or leasing vehicles. It is primarily because the circumstances for business clients are always especially favorable and this is why the cost to the client can be reduced. Long-term car rental is already much more widespread in many other countries, but this form of long-term car rental is also becoming increasingly popular. In the following, we would like to offer a comprehensive overview of the advantages and disadvantages of the long-term car rental and allow you to inform yourself about long-term car rental.

The disadvantages of long-term rental cars

There are basically a few disadvantages to long-term car rental. The only downside is that no property is acquired. You just compensate for the usage of the vehicle so don’t get any actual counterpart. However, you should bear in mind that the value of a vehicle also declines rapidly and only takes a fraction of the original value after a few years. This disadvantage is only of limited importance and can, therefore, be left out of most calculations.

The advantages of long-term car rental for companies in detail

A particularly great advantage to rent a car in Islamabad is high flexibility. With long-term car rental, you as a company are able to quickly adapt your car inventory or your company’s vehicle fleet to the particular needs. For example, the number of vehicles can be adjusted quickly and easily at any time for certain projects, employees during the trial period or for certain economic needs. This also means a direct and simple cost control for the respective company, since the fleet can also be quickly reduced and thus adapted if necessary. A not inconsiderable advantage that significantly minimizes the financial risk of having your own fleet.

This point leads directly to the next advantage of long-term rental cars. Because with the long-term rental car companies can carry out a significantly more secure and effective budget planning. The rental rates for long-term vehicle rentals are fixed and therefore simplify planning. In addition, the rental rates can be offset as operating expenses and are therefore fully deductible. This makes long-term car rentals even more attractive for companies, since they also bring tax benefits. In combination with the very simple budget planning, tasks in the area of ​​controlling can be relieved noticeably by using long-term rental cars.

Financially, long-term car rentals also offer significant advantages for companies. Especially the self-employed, startups and small businesses benefit from the fact that the acquisition costs for long-term car rentals are no longer significant. There is no need to take out often expensive and difficult to secure loans for the purchase of one or more vehicles. The costs are only incurred for the vehicles used and can, therefore, be easily calculated. This means that the company is economically better secured and can use the available funds more effectively and, above all, more effectively.

Advantages of long-term car rental for all tenants

When you lease a vehicle, you automatically assume all the obligations of an owner. This means that you have to bear both the risk of repairs and the so-called residual value risk. Accordingly, leasing a vehicle can become financially risky very quickly. With a long-term rental car, however, the whole situation is different. Because the rental price for long-term car rental includes both fully comprehensive vehicle insurance, the applicable vehicle tax, maintenance and the usual wear and tear of a vehicle. This can be a huge relief, especially for large fleets. But even as a self-employed person, you are usually happy to have to invest as little work as possible in a company car. The cost of long-term car rental is, therefore, a real all-inclusive price.

Of course, flexibility is also important, which is particularly important for long-term car rentals. Just consider the minimum lease terms. Leasing contracts usually have a term of at least 24 months. Tying yourself up for such a long period of time is counterproductive and economically meaningless in many industries. With a long-term rental car, however, you can also cushion short-term needs or short order peaks very well because contracts can be concluded between three months and two years here. So if you have to cushion temporary peaks in your company or only need a vehicle for a manageable period, long-term car rental is usually the best alternative.

Have your own vehicle configured

Do not make the mistake of confusing normal car rental with long-term rental. Because you can normally configure long-term rental cars as you wish and adapt them to your wishes. So you do not only get any rental car for a longer period, but the rental car you want according to your specifications. You can configure not only the equipment of the vehicle but also the price in parts via the equipment and size of the rental car. A modern and suitable car can be organized for little money, which is ideally suited to your wishes or your employees.

Let’s take the example of a company again. If this creates its own fleet, not all employees should be equipped with the same vehicles. The representatives who have to make longer journeys will receive the corresponding vehicles with strong engines and sufficient storage space. Other vehicles can be used for employees who, for example, only cover the close range. If you have now bought the vehicles and your sales strategy is changing, in the worst case, you would either have to let the employees drive with unsuitable vehicles or change your entire fleet at a loss. With long-term car rental, this is not a problem because you can react flexibly to the needs of the market and your company.

The less organizational effort is also an important and not negligible advantage. Because in the event of theft, accidents, or any other damage to the vehicle, you do not have to worry about handling the entire procedure. But on the contrary. You report the damage to the landlord, and the landlord takes over all the necessary steps. This additionally relieves you and offers the convenient option of using your time sensibly for your own company.

This leads us directly to the last significant advantage of long-term car rental. Because we offer you the option of a mobility guarantee, so if you have no operational vehicle after a damage, but still urgently need a vehicle, we will, of course, provide you with this vehicle. For a rented car or your own automobile, a compromise of this type will always require massive costs for you.

However, we still have to mention a small advantage in long-term vehicle rental. Thanks to the possibility of short terms, you can regularly look forward to a new vehicle and quickly adapt the vehicle you use to changing requirements. For example, if you rent a long-term rental car for a year, you can conclude a rental contract for a new rental car at the end of the year. You can, in turn, configure this according to your specifications. So you do not stuck yourself to a specific vehicle for a long period of time – as you do when buying or leasing – and you can only replace it with financial losses. With the long-term rental car, you remain pleasantly flexible.

So you see why the long-term car rental will sooner or later become more popular. Because especially for the self-employed and entrepreneurs, this variant of the rental car offers a simple yet practical option without having to use large funds to have a flexible vehicle for your own wishes at the door.