In addition to purchasing or leasing vehicles, long-term car rental is an attractive alternative for many fleet managers. This is because it allows fleets to react to increased vehicle requirements, for example in the event of seasonal fluctuations or specific project requirements, without entering into long-term commitments. Find out here what other advantages long-term rental offers and what disadvantages should be considered.
What is the long-term rental of company cars?
With long-term company car rental, a car is rented for a longer period of time, typically several months. It therefore offers a flexible and uncomplicated way of using a vehicle for a longer period without the obligations of a purchase contract.
Long-term car rental differs from short-term rental, which often takes place on a daily or weekly basis, and leasing, which often has a longer term and may include a purchase option or an obligation to return the vehicle.
What is included in the rental price?
Many costs are already included in the monthly rental rates to ensure carefree use of the vehicle. These include maintenance and repairs, insurance, breakdown assistance, and sometimes also taxes and registration costs.
What are the advantages of long-term rental?
The long-term rental of vehicles offers a number of advantages for the fleet as a form of procurement, for example:
- Flexible rental period: The rental contracts can be individually adapted and tailored to the respective mobility requirements.
- No long-term commitment: Unlike leasing, long-term rental does not usually involve a long-term commitment and often offers more flexible termination terms.
- Short-term availability: The vehicles are usually available within a few days so that you can react quickly to mobility requirements in your fleet.
- Current vehicle models: Long-term rental providers often provide new or as-new vehicles that are equipped with the latest technical and safety standards.
- Calculable costs: The fixed monthly installments make budget planning easier.
What are the disadvantages?
In addition to the numerous advantages, fleet managers should also consider some potential disadvantages:
- Higher costs: Unlike buying or leasing, long-term rentals can be more expensive on a monthly basis. Especially if the rental is extended over a very long period.
- Less individualization: The rental vehicles are already configured and therefore offer hardly any options for individual configuration.
- No ownership option: At the end of the rental period, there is usually no option to purchase the vehicle, as is often the case with leasing.
When is long-term rental worthwhile for the vehicle fleet?
As a fleet manager, you don’t have to choose between leasing and rental. In many cases, long-term car rental is an ideal complement to other forms of procurement.
- Bridging delivery times: Long delivery and waiting times for vehicles are not uncommon. With long-term rental, you can bridge these flexibly and ensure mobility in your fleet.
- Testing technologies and equipment: Many fleet managers want to test e-vehicles or special equipment for use in the fleet and check whether long-term leasing or purchasing is worthwhile. Long-term rental offers the right framework for this.
- Company car for the probationary period: For employees who are in their probationary period but are entitled to a company car, a rental vehicle is worthwhile.
- Fluctuating mobility requirements: If your vehicle requirements increase as part of a project or due to seasonal fluctuations, you can react flexibly with long-term rental.
What is the difference between long-term rental and car subscription?
Long-term rental and car subscription seem very similar at first glance. However, there are some differences between the two models. Users who opt for long-term rental receive a vehicle of a desired class, in some cases also a specific model. With a subscription, the make, model and equipment can be selected from the available options. In addition, the monthly rate for a car subscription is usually somewhat cheaper than for a long-term rental.
