Advantages of renting for companies, analyze if it really interests you

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The advantages of renting for companies are undeniable when you take a look at the functioning of the market and find that the trend has been on the rise since 2015. If the vehicles registered that year (447,623) are compared with those of the month of November 2019 (710,548), it is seen how in just 4 years the figure has increased by nearly 59%.

The year 2019 has closed with a number of vehicles registered in this regime of 302,900 , which represents an increase of 13.13% compared to the same period in 2018. 

Advantages of renting for companies

This unstoppable growth finds its explanation in the numerous benefits for companies and freelancers. Some of the reasons why companies prioritize long-term vehicle rentals over incorporation into fixed assets are:

1. Civil liability insurance is included in the rate

For this reason, it is normal for companies to prefer to contract a service over an asset, since their responsibility for it decreases.

2. Maintenance costs are included in the price

This advantage has two benefits for the company: on the one hand, it does not have to be held responsible for logistics, such as maintenance, repair of breakdowns or roadside assistance. This makes having a vehicle park easier logistically.

On the other hand, as with insurance, it has no obligations to third parties in matters related to the car. This implies less responsibility and greater cost efficiency.

3. It is a variable expense

This point is not only important at the accounting level, but also in the face of the company's flexibility and the optimization of its cost system. Having a contracted service makes it easier, if necessary, to dispense with this cost, since it will only mean canceling a contract. In addition, it is a fixed monthly fee. 

In the case of owned vehicles, you cannot act immediately, and you would have to continue dealing with the letters of the car until it could be sold.

4. Tax advantages

In the case of the self-employed, as these types of services are contracted for professional reasons, they may be deducted from their personal income tax payments, their corporate tax payment and from the declaration of income, fees.

In addition, as long as it can be shown that the use of the car is completely necessary for the development of the activity, 100% of VAT may be deducted, since the renting for these functions is exempt from this tax.

5. Image

As it is a service, it is usual that the vehicle can be changed from time to time, this will offer customers a better business image.

6. Flexibility

As it is a service contract, it allows the businessman to adapt the vehicle to the needs of his business, being able to change cars when necessary. This is an advantage that evolves over time.

7.- Management of fines

In addition, it has a series of complementary services such as the management of fines. This claim process that can be complicated and tedious is facilitated thanks to the service offered by the renting companies.

As it has been seen, the advantages of renting for companies and freelancers focus on versatility, flexibility and efficient cost management, objectives that all companies should pursue.