As businesses seek to save operating costs, they often minimise purchasing assets if they do not need to use it often enough to justify its cost. One clear example is cars. If transportation is not a major part of a business’ activities, many may consider temporary rental of cars instead of buying them, because of the benefits they bring.
Why Businesses Rent Cars & The Benefits of Doing So
Saving on long-term costs
If you are looking for short-term vehicle commitment periods such as a few days or weeks, renting a car is a better option than buying one, only to have it sit in the carpark unused for months on end. With corporate car rental, you can rent a car for as long or as short a time as you need, and precisely only for as long as you need it. This means no excess costs, and huge savings for your company.
More financial freedom
Buying a car costs a significant sum, especially in Singapore with the COE. What’s worse for businesses, that payment has to be done in cash, which not every company has on hand. Imagine if you’re a small company, having to pay a 30 to 40 percent downpayment for a brand-new car, and shoulder the full cost of several cars as well. If you need to take on bank loans to afford it too, this is a serious commitment not to be taken lightly.
Don’t worry though, here’s a piece of good news for you: renting a car gives you a peace of mind without having to worry about a hefty downpayment or losing sleep over the interest rate of bank loans. Your company will spend less, and will avoid potentially taking on debt for this.
Another obvious reason to rent a car would be the convenience it brings. And for businesses, especially huge organisations, convenience improves efficiency and productivity, as it gets staff to their destination faster, wasting less man-hours and keeping your business as profitable as possible.
Flexibility to try out different models
Renting a car allows people the freedom to drive different car models, or for businesses, the freedom to vary the car model according to your business needs at the moment. This gives you the versatility to adapt what your staff drives to what your business needs at the moment.
Renting a car gives you the luxury of choice to pursue comfort instead of economy if you need, especially if your use of a corporate car is for the purpose of transporting guests and visitors. Making a good impression is crucial, and that impression could start from the moment you pick them up in comfort, from the airport.
Premium models at a more affordable price
The reason why companies can pursue comfort instead of economy when they rent is that with car rental companies, you have the option of driving premium models when you need. Do you feel that a certain premium car model suits your company’s image better? More often than not, companies would not choose to purchase or even consider premium car models as they are far off the budget. However, with car rental firms such as BizLink, premium models don’t have to be a dream anymore. You can choose to indulge in premium models without paying a large downpayment sum, yet enjoy the same comfort and a superior experience.
Freedom to upgrade
Buying a brand-new car not only requires more cash upfront, but it also means you’re stuck with it for years and will then need to dispose of it and upgrade to a new model yourself. Don’t forget, other matters such as outstanding loans and insurance can also complicate the process of upgrading to a new corporate car.
However, renting a car with one of the best car rental firms such as BizLink, allows you the freedom to upgrade or switch over to another vehicle of your choice as and when you like, each time you rent. With rental, “upgrading” to a new model has become as easy and everyday as changing your attire!
Most of the time, leasing a car with a firm would mean that you don’t have to worry about nitty-gritty details such as administrative matters since they would all be taken care of for you. Such matters often include vehicle inspections, servicing, insurance, replacement of wear and tear parts, and repairs.
To sweeten the deal even further, some car leasing firms even provide pick-up and drop-off services, and a courtesy car for times when yours is out of commission. You won’t even have to worry about taking your ride into the workshop for a service or an inspection.
No risk of depreciation
One major pain in the neck that comes with owning a car is depreciation.
All cars depreciate, it’s just a matter of how much. Add the depreciation value to the downpayment and monthly bank instalment, and congratulations in getting yourself a steady stream of unnecessary monthly expenses.
However, renting a car with a firm such as BizLink means you don’t have to worry about depreciation, as this financial aspect is already taken care of for you.
Car rentals are not only for the expats
One of the most common misconceptions about car rental services is that it is only suitable for expats. Singapore does have a relatively efficient public transport system that residents living in Singapore can rely on. However, nothing beats the convenience of driving a car—and you can’t very well expect staff in a hurry, or an important visitor from overseas, to take the MRT! Car rentals are very much suitable for businesses and even locals too!
Rental cars are not inferior
Are you worried about rental cars being more limited in models, or somehow poorer in quality due to being more heavily used? Fret not, as a good car rental firm such as BizLink would provide excellent service and ensure that the vehicle you rent is in optimum condition from quality in-house maintenance, as well as countless customisation options that ensure you can rent a car that fits your needs and purposes.
If your company’s need for cars is not constant or high, you may not be able to justify the cost of buying one or more for your corporate fleet. Renting a corporate car makes a ton of sense to any company, especially smaller ones aiming to save costs in the long run. Get in touch with Bizlink today to start saving!