Business car hire is an increasingly popular way for companies to expand their fleet and ensure that their team are always on the move. This is especially relevant if they need a vehicle on short notice, for a short period of time.
For some organisations, it is something that is regularly overlooked. Many still rely on their grey fleet (personal cars used for business use) rather than investing in business car hire.
That is why this month we wanted to explore some of the benefits to business car hire, along with what it means for your business.
Fixed, monthly payments for greater cash control
One of the biggest benefits of business car hire is that you are able to maintain tighter controls over your monthly expenditure. Cash flow is a high priority for any business, and the ability to budget accordingly means that you will not have to worry about unforeseen costs through the duration of the rental.
Reduced administration and maintenance costs
For many businesses, the burden of additional administration is a key concern, especially when it comes to implementing a new fleet policy or introducing new vehicles. With business car hire, this is not the case.
Your vehicle supplier will monitor all the paperwork for you, and if you have chosen a contract that includes maintenance, then these costs are already covered. The savings made from not having to service vehicles can be reinvested in other areas of your business, or set aside for future expansion.
Offsetting the rental
If you are a limited company, then you are able to offset the monthly rental cost of your business car hire against the end of your corporation tax. If you are a sole trader (sole proprietor in the US) or a partnership, then you are able to offset the rental against your yearly tax.
How much you are able to offset does depend on the Government guidelines, which often take into account how much CO2 the vehicle produces. Currently, if your vehicle emits more than 160g/km of CO2, then you are able to claim 85% back.
However, if the vehicle emits less than 160g/km, you are able to claim 100% back, making smaller, greener cars a popular option for businesses both large and small.
Flexible vehicle choice and contract terms
When it comes to business car hire, you are able to choose a vehicle that is best suited to your needs. Regardless of whether you need a larger vehicle for corporate events or need a specialist refrigeration unit for catering, there are plenty of options available.
At the same time, business car hire can come with short-term or flexible leases, meaning you can use the vehicle for as little as a day, without having to worry about storing the vehicle on site after you are finished.
Testing vehicles before making a decision
If your business is considering expanding your fleet, then business car hire is a way of testing the vehicles out before making a final decision. With vehicle technology always advancing, it is important that you know a specific car or van is the right choice for your business.
Many vehicle hire specialists, GKL Car and Van Rental included, have teams with extensive knowledge on all makes and models, and they are able to advise you on which vehicle would be most suitable for your needs.
In summary, business car hire is an exceptional way of controlling costs, ensuring that employees are driving vehicles with the latest safety features and technology. Thus ensuring that your business is always moving forward.
If you would like any more information on anything you have read here, or would like to discuss business car hire within your own company, then our team are here to help. Speak to them today to find out what option is going be most beneficial for your needs.
