Medium and long term rental for companies

Rental Cars for businesses provides a lower tax base

In today’s world almost every business requires a fleet of cars. That is why it is worth familiarizing yourself with all the available offers before making a decision (to buy or lease). In recent years, company car rental services are gaining popularity. Long-term car rental in terms of taxes is considered as an operating lease. The rental company, as the owner, can write off the depreciation, while your company can treat the monthly installments as a tax burden. Since 2019, we can add the entire initial fee (not necessary) and 100% of the rental installments (up to 150,000) to the tax deduction. Car rentals for companies is a modern, convenient and financially advantageous option for entrepreneurs who are focused on further development and are looking for effective solutions.

The costs are as low as leasing (and can be even lower)!

When considering the expansion or acquisition of a car fleet for a company, the first thing that comes to mind is leasing. This is a tried and trusted solution with many advantages. Car rentals are comparable; however less people know that long-term rentals can be a much more beneficial option for you. Using rental vehicles is a flexible solution for entrepreneurs who prefer to rent again, after the initial rental period (e.g. a newer model), and do not intend to buy a leased car (although it is also possible). Rental installments may differ significantly from leasing installments; when renting a car, we only pay the margin and usage costs, we do not repay the value of the car, as occurs in leasing. During the medium and long-term rental period, the owner is not charged for repairs and services – these remain on the side of the rental company.

No additional costs besides fuel.

Renting a car a company saves time and resources. By deciding to rent a car for your company, in the medium to long term, you get a comfortable, efficient, and safe means of transport. Depending on how you set up your rental contract, you can pass on the costs of administering your car fleet to the rental agency. You also don’t have to make your own contributions when renting a car. You do not have to worry about things such as: registration inspections, repairs, replacement of parts, and replacement of tires, insurance services or damage liquidation. You pay only the monthly installments, and the rest is taken care of. You can take care of your business development while we worry about your car fleet. Additionally, using the car only for corporate purposes allows you to add 100% of the fuel costs as operating expenses to your tax deductible expenses.

Renting a car for a company – medium or long-term?

Medium-term car rental is a service that lasts for a period of 1 to 24 months. It is possible to terminate this type of contract early. It is a flexible form of car rental, allowing entrepreneurs more freedom. Depending on the situation, they may opt out of the contract or switch to another model that better suits their needs at the moment. A long term rental is an agreement that lasts for a period of 24 to 36 months (or more). In addition to many benefits for the company, car fleet rental allows for the minimization of effort, no unforeseen costs, and flexibility. Additionally a wide range of vehicle models are available, from small city cars to large vans. Premium class cars are also available for demanding and comfort seeking customers, who care about company image.