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Hiring versus Car Leasing

Could hiring a vehicle prove more cost effective than leasing a car?

    
In today's modern market place companies of all sizes are looking to out manoeuvre their competitors, whether it’s how they promote their services and products, or cutting costs paid to suppliers.

Business travel can play a large part in the success or failure of a small to medium enterprise.

If you or your employees need a vehicle for business use, knowing which option to choose should be a key decision for you.

Is car leasing really best for you or your business?

If you or your employees need a vehicle for business use, knowing which option to choose should be a key decision for you.

Traditionally, leasing a car for several years has been seen as the only option. In the last decade, people have realised that leasing a vehicle represents better value for money than owning the same vehicle. Leasing however does have its limitations.

For example, being tied into a lengthy period of time (normally a minimum of 2 years), or having an unsatisfactory cap on the number of miles you can cover, before extra charges occur.

That's why Avis have developed Avis Flex as a cost effective alternative to car leasing and car pooling.
    

    

With Avis Flex, you can choose from our full range of cars and with no deposit and no other commitments.

The minimum period is also just 28 days, which gives you the flexibility to just relax and enjoy driving the vehicle.

Offering a comprehensive service package that includes all the following features, Avis Flex offers complete peace of mind:

  • No maintenance bills
  • Monthly billing
  • No hidden extras
  • Free 24-hour Roadside Assistance


We can also tailor make packages to suit your needs. Click here for more information or call us on 0844 544 7733.


Could car hire be a better option?

Increasingly, car hire can offer a better solution. Avis believe a small business in particular can truly benefit if the circumstances are right for them. Flexibility can be a huge advantage.

Do you have a new starter who is on probation for 3-6 months, or have a relatively high turnover of staff? Do they need transport to effectively do their job?

The dilemma you face is committing to a long-term lease deal, and potentially being stuck with idle vehicles that you’re still paying for.
Roger Grainger, Sales Director for Avis UK says;

“More and more of our SME customers enjoy the flexibility we can provide. If, for whatever reason, after 4 months they no longer need that vehicle, they can return it to us with no penalty. Alternatively, there’s no problem to keep the rental going on a month by month rolling basis.”
    

    
Another benefit of hiring a car over leasing is the mileage restrictions.

Typically, leasing a vehicle will mean an annual mileage cap of around 18,000 miles. Go over this, and heavy penalties can apply.

Avis offer a 2,500 mile limit per month (30,000 a year), which in some cases is over double the mileage available on lease deals. This can be ideal for any company with a sales team.
Is leasing a false economy? A common mistake is companies think they are saving money by having a “low” monthly rate.

But make sure you’re aware of extra costs such as tax, insurance, and servicing. Management of cash flow for small to medium size businesses can be make or break. Therefore knowing exactly what your costs are, and when they are due, is crucial.

Avis are proud of the transparency and clarity of their charges. Customers on short and long-term deals are sent a monthly invoice with a line-by-line breakdown of charges, and a final total at the bottom. Avis also give you a dedicated account manager, should you have any questions.
    

    
Using a car hire company like Avis mean your employees will always be driving brand new cars (they are replaced every 6-8 months), there’s no deposit to pay (also helping cash flows), and they can help supply all the information needed to complete a P11D form.

Of course hiring a car isn’t always suitable. If you’re confident you and your employees need a vehicle(s) for more than 2 years, leasing, or purchasing probably is a good option to consider. The typical debate on this topic is usually around the merits of leasing over purchasing. But car hire can have some very attractive propositions for your business, and help companies have a better control over their costs
Click here to find out more about Avis Business Solutions, or alternatively give one of the Avis team a call on 0844 544 5000 to find out more.
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