Renting work trucks or company cars is often dismissed as too expensive. But there are certain situations when it can actually save you money. Most business owners prefer to buy vehicles because it provides them the freedom to use them in any way they want. However, a great rental program can help your company optimize your fleet by offering flexibility. While there is no magic formula for deciding between owning and leasing vehicles, here are a few reasons why vehicle rentals for business might make better sense for you:
No Need to Pay in Full
One of the main business advantages of leasing a vehicle relates to cash flow. Trucks and cars are not cheap. If you decide to lease, then you do not have your cash tied up in one asset. This means you have more free cash in the bank that you can use for daily operations. Typically, renting work trucks and cars are cheaper than taking out a loan because you are paying for the difference between the purchase price of the car and the residual value. The process is also a lot simpler. If you agree with the terms of the rental company and pay the required fee, then you can already drive away with a brand vehicle.
Provides You Choices
When looking for a work vehicle, you have many factors to consider. These include the type and model most suited for your operations, the image you want to project to your clients or customers and even the latest tech innovations that you can’t do without. Getting a lease allows you more options to switch to different vehicles depending on changing circumstances of your business.
Allows More Flexibility
Although there is a written agreement between you and the rental company when leasing their vehicles, you still have the option to tweak or adjust certain aspects of the contract. This becomes useful particularly if your business is seasonal. There are times when demand accelerates, and you need more vehicles or times when business is slow and unused vehicles are left idle in the garage. Renting vehicles allows you to adjust accordingly. This flexibility can save you a lot of money that can be utilized to grow other parts of your business.
Less Maintenance Headache
One of the great things about renting a vehicle is that maintenance is often taken care of by the rental company. Of course, you still need to fill up the tank now and then and check tire pressure or oil levels regularly, but you do not need to worry about wear and tear or other long-term maintenance issues because it is not your vehicle. You even have the option to turn in your vehicle and replace it with a newer model at the end of your contract as long as there are no major damages while the vehicle was under your care.
Possible Tax Deductions
If you are a business owner, you can get tax incentives for your rental vehicle because it was used for company purposes. You just need to prove that the vehicle was used at least 50% of the time for business operations.
Contact us at 1-877-479-1388 or email Steve Gruber at firstname.lastname@example.org for your car, truck or fleet rental and no-term leasing needs. We have locations in Hamilton, Selkirk & Niagara and service all of Ontario through our partner network. With a fleet of over 800 vehicles and growing, Thomas Solutions has a wide array of work vehicles for lease or rent, and an expert team that provides fleet management services for large industrial firms.