Long-Term Rental

In the leasing instalment, only the loss of value of the car in the period in which the entrepreneur uses it is repaid. The value of the car at the end of its operation by the company is specified in the contract and cannot be changed during its term.

The contractual instalment amount is the same throughout the duration of the contract and includes all costs related to the company car, and therefore not only vehicle financing costs, but also the costs of comprehensive service and administrative support related to company car management. Regardless of whether it is necessary to perform an inspection of the car in a given month, or to buy new tires or change the oil in the engine, the costs are the same for the entrepreneur all the time. The only variable and additional cost for the entrepreneur is fuel. The company's budget for company cars is thus easier to plan and control.

Experts and advisors of long-term rental companies will help entrepreneurs choose the most suited cars to their needs, which will increase the safety, mobility and comfort of their employees, and as a consequence will increase the operating efficiency of the company and reduce the fleet usage costs. When constructing a fleet, it is important to choose appropriate cars for the company in terms of many important factors, including: make, vehicle size, type of body (sedan, estate, hatchback, delivery), type of drive (petrol, diesel, hybrid, electric), routes covered by employees (urban areas, motorways and expressways), average annual mileages, the industry in which the company operates (consulting, construction, food).

The entrepreneur can focus on its business and earn money, leaving the business car cases to the long-term rental company. Its employees do not need to spend time, e.g. on arranging visits to the site, buying insurance or even picking cars up from the workshop. As part of the flat-rate costs of all administrative and servicing activities related to the car, the long-term rental company provides, among others, vehicle registration, documents exchange, insurance, road assistance services, replacement cars, purchase and replacement of tires, inspections, repairs, claim settlement, fuel cards, resale of cars after an agreed period of use (e.g. 3 years) and exchange for a new vehicle, and even door-to-door service (pick-up and drop-off of the car to the address indicated, e.g. when reviewing the site or changing tires). Currently, many long-term rental companies offer their clients mobile applications and on-line access to previously agreed reports, financial statements, data updates, ordering additional services and dates of service visits, etc.

Long-term rental is a service tailored to the needs of each entrepreneur. The company does not have to use the full range of possible servicing of its fleet, and choose only the most needed elements, such as mechanical service, insurance, assistance and tires.

As part of long-term rental, an entrepreneur can use any brand and model of a passenger car or commercial vehicle available on the Polish market - regardless of its value, class or equipment. Cars in the long-term rental service can be both new and used. In addition, the scope of services may include cars financed by the client and those already owned by them.

Unlike other forms of external car financing (credit or traditional financial lease), the company pays no initial payment.

Cars are used during the selected period (at least 2 years, max. 5 years), and then returned to the long-term rental company that deals with resale to the secondary market. Entrepreneur - as part of renewals of the contract - receives next, selected cars and does not devote time to the cumbersome process of selling used cars. Entrepreneur also does not bear the risk of obtaining a lower than expected car sale value on the secondary market, which in this case lies on the long-term rental company.

The entirety of the leasing instalment can be classified by the entrepreneur as tax-deductible costs and the company may make tax write-offs on this account. The deductibility of VAT depends on the chosen method of car use.

The value of cars used in long-term rental is not included in the assets of the user, but in the long-term rental company’s assets. Therefore, the entrepreneur gains more freedom, financial liquidity and creditworthiness of their own company, thanks to which they can further develop and invest in their business.

In a long-term rental it is convenient not only to use company cars (service is handled by the supplier), but also when it comes to all settlements and payments related to the fleet. The entrepreneur does not open several, or even more than a dozen invoices per month (e.g. for insurance, repairs, inspections, etc.), as entrepreneur receives only a cumulative invoice for all costs associated with a company car from a long-term rental company. Modern operating systems enable customizing the invoicing method to the specifics of customer settlements (settlement centers, cost centers, e-invoices, etc.)

Thanks to the financing of only a part, instead of the entire value of the vehicle, no need to involve their own employees in handling company cars and using preferential rates and discounts offered by a long-term rental company for repairs, service or spare parts, the entrepreneur makes significant savings in the total costs of company cars. They usually oscillate around a dozen or so percent in relation to car financing from own resources, by means of loans or traditional financial lease.