How it works:

Long-term rental is a contract service between leasing and car rental, it is about selling transport solutions instead of cars themselves. This form of  deal waives  fees for a  transport division in a company, controlling vehicles, paying for transport  damages and selling used vehicles. It also simplifies car care such as servicing, changing tyres, insurance negotiation costs, budgeting, accounting and guarantees that every car works  for your company with no need  for using replacement vehicles.
Signing the contract does not require investing funds or making any other pledges.
Contract can be entered into one month period (short term rental - used car) or up to a few years (new car - chosen by client).
The price of rental varies depending on contract length.
 

Components of contract rental are:

• Financing the purchase of cars ;
• Full insurance of cars during the agreement;
• Administration of car fleet:

1 Car registration
2.Preparation of vehicles including installation of additional equipment.
3.Running and  financing  car servicing  and a guarantee of a replacement vehicle if the main car is out of service
4.Liquidation of damages and provision of replacement vehicles ( applies also to total and theft damages )
5.Financing seasonal and  tyre wear exchange
6.Financing assistance in case of breakdown  (car towage etc.)

• Car pick-up after the period of agreement; ;
• Car sale after agreement;
• Coverage of car's value loss.

Profits:

• No need for creating transport department / it's liquidation/reduction
• No need for credibility declination by cars purchase.
• Increase in balance sheet markers (decrease in balance sheet total, reduction on financing active capital by equity marker) and certain resultant markers (increase in return on equity).
• It is often vital for negotiations with investing companies and in ownership relations - especially in complex ownership structure companies.  
• Guarantee for car running costs coverage. The only cost paid  by client is the cost of fuel and operating fluids. Expenses of servicing, accidental damage repairs and mechanical  repair service are covered by the company. Damages made by inappropriate usage of vehicle (damage caused by low oil level) or driving after alcohol consumption are covered by drivers. We recommend bringing in a proper note to employment contracts.
• Client procures a monthly bill of sale. It's helpful to plan costs of transport precisely. It reduces costs that would be made by larger quantity of smaller bills.
• Fleet exchange after certain period of time will neither cause any unpredicted loss nor make need for  financing unused cars to the time of their sale.
• Car's damage in case of breakage, accident or theft will not  interrupt work - the similar car will be provided. It is worth to emphasize that in case of theft the compensation  will be  granted after several months, but leasing will still have to be paid.
• Flexibility and speed of action. Rental of small car fleets (a few cars) can be conducted within a couple of days. Client can extend the fleet temporarily by paying discounted price of short-term rental (e.g. luxury car for CEO visit or couple of additional cars for couple of days/weeks)
• Cost of rental is usually lower than cost of having own fleet, because of rental companies’ experience. It helps minimizing costs connected with operating cars.

Offer’s recipients::

• Companies that work seasonally or those which need vehicles for short-term contracts (e.g. developers, financial services, customer support).
• Companies which act on dynamic markets or these which come onto market and cannot calculate  need for logistics. In this group, we can also join companies that expect sudden loss in demand for their services or products. Getting rid of cars during market loss is difficult and connected with  considerable cost.
• Companies which invest widely and therefore their credibility is low and/or do not  wish to reduce it by purchase of own vehicle fleet.
• Foreign branches that are limited in making high- cost purchases or contracts (credit, leasing)
• Companies which just want to liquidate transport departments.
• Companies having negative economic trend that needs savings.

REMEMBER:

Even in case of several car - rental contracts, there is a possibility of calculating cost lower than cost of own fleet. It’s important to be aware of the fact that total cost of own fleet consists of many factors – cars’ purchase, servicing, insurance, accountancy and costs of damaged vehicles outage.
Managing bigger car fleet is a thing that requires running  a separate business that has annual budget over 1 million złotys and is not  connected with the main profile of the  company.