If you are a small business owner, then you will know how difficult it is to raise finance in order to get your business off the ground. As long term car rental specialists, we share some insights on why long term car rental is the ideal alternative vehicle finance option for SME’s.
Benefits of Renting a Car Long Term for SME’s
- The long term car rental is on a month to month basis, meaning that if you need to upgrade the car or if things does not work out, you just return the rental and walk away.
- There is no high deposits or balloon payments involved with a long term car rental.
- Monthly car hire instalments is a fixed monthly expense that includes maintenance and insurance, making it a much more predictable monthly expense for your small business.
- It is an off balance sheet expense, meaning that it is a fully tax deductible expense.
- The depreciation of the vehicle is the problem of the rental company and not the renter.
- 24 hour roadside assistance is included in the rental amount.
- Fleet management is included in the monthly rental amount.
With all the other obligations and needs of a small business, it really makes more financial sense for an SME to rent or lease their vehicles, if you think about it, the R200K that you spend on a car for the business, could have been invested in more stock or marketing the product – meaning growth of the business, versus buying a car – maintaining the business.
If you are looking to rent or lease cars for your business, call us on 011 262 5500 now or send your inquiries to info@pacecarrental.co.za