Everyone knows about renting a car when you’re on an extended vacation, but not many people consider long term car rental for business. It’s much more common for business travelers to use their personal vehicle for business trips, and then get reimbursed by their company. However, this isn’t always the best option. Whether you’re self employed or work for a large company, long term car rental for business can cut down on overhead and mitigate the risks of owning and maintaining a car for work.
What is Long Term Car Rental?
Long term car rental is exactly what it sounds like. Instead of getting a loan or investing tens of thousands of dollars into a new vehicle, you rent it and pay a fixed weekly or monthly price until you no longer require the vehicle. These rental agreements often include insurance and complimentary maintenance. Consider how much money you spend per year on oil changes, new tires, and minor repairs. These are a few of the services that get taken care of, free of charge, if you rent long term.
Long term rentals are often much less expensive than renting for a few days or a week. You may even be able to negotiate the terms of your rental agreement to get additional discounts or services. There’s usually a minimum long term rental contract that you have to sign in order to get long term discounts. In many cases it can be as short as a month or two. However, a rental term of six months is often required to qualify for business rates.
Keep in mind that a business car rental can qualify as a deductible business expense. Make sure you follow all IRS regulations or speak with an accountant about deductible travel expenses.
When is Long Term Rental Right for Me?
Let’s say you’re traveling away from your home city for a few months and need some way to get around. This happens more often than you’d think. Some people have to travel to a distant city for months at a time for work. It’s not practical to drive everywhere with your own vehicle, especially if your destination is thousands of miles away. The wear and tear on your own vehicle would be substantial. This makes renting a car for a few months the best option. In the end, you’d likely save money on the gas and maintenance costs alone.
This logic extends beyond the business world. During long trips or vacations a rental car offers the personal autonomy you need at a vacation spot. Using a taxi or rideshare service to get everywhere becomes expensive quickly. A long term rental also provides peace of mind. These vehicles are fastidiously maintained by the rental company. It’s very unlikely for one to break down during use, and if they do, the company will immediately replace the vehicle.
On the topic of car replacement, sometimes accidents and breakdowns happen. It comes with the territory of owning or leasing a vehicle. You should consider a long term rental if you ever find yourself without a car for a month or two due to an accident. Most of the time insurance companies pay for a rental vehicle while your car is being repaired. However, they often only cover the first few days or weeks. A long term rental can be an inexpensive way get you back on the road quickly.
Some Things to Keep in Mind
When renting a vehicle for any period of time, there are a few things that you should keep in mind. Similar to a lease, the car you rent will most likely have a mileage cap. This means that you’re only allowed to drive a certain number of miles during a monthly or yearly period. Exceeding the mileage limit can cost a lot. In many cases, you’ll have to pay for every additional mile that you drive in the vehicle. This isn’t an issue for many people, but it’s definitely something to consider when renting a vehicle.
Although renting a car avoids the steep cost of ownership, a rental car still requires an initial investment and continued payments. Every rental car requires a deposit. This might vary depending on your rental term, but this deposit will be returned to you after you bring the vehicle back in one piece. In many cases you’ll also have to pay for insurance for the vehicle. Be sure to consult with your rental company to get an accurate picture of any additional fees.
The term length and the type of vehicle you rent can substantially change the cost. Compact cars, hybrids, and older vehicles tend to have the least expensive rates. On the other hand, a mid-size sedan, luxury car, or SUV can be substantially more expensive to rent. This is partially because the rental company has to cover the regular maintenance costs and offset any depreciation. During the first few years of the car’s life, the value depreciates quickly. If you want to get the most bang for your buck, consider renting a older compact car for a long period of time. Longer contracts offer the best price and older vehicles don’t depreciate as quickly as newer ones.
How Do I Get a Business Car Rental?
When you contact a car rental place, be sure to tell then you’re considering renting a car for your business. They’ll provide any pertinent information you’ll need to get started. Be sure to bring your drivers license and anyone else who will be driving the car. Additional drivers will need to be present to sign the contract and get added to the insurance.
You’ll need to bring a credit card, deposit, or both in order to finish the signup process. This is to guarantee some form of payment to the car rental company. In most cases, you won’t have to worry about credit checks or providing proof of income. A car rental doesn’t go through the same process as leasing or buying a vehicle. This makes it much easier to get into a vehicle on short notice.
After you get the initial paperwork sorted out and select a vehicle, the company will set you up with insurance for the vehicle. In most cases, the insurance is included in the monthly price of the vehicle. Along with the regular vehicle insurance, many car rental companies provide 24/7 roadside assistance. This is often at no additional charge, so you don’t have to worry about running into any trouble with your vehicle.
After that, you’re all set to drive off in your long term rental car. Whether you’re traveling for business or for pleasure, a rental car is an essential part of any trip. Now you can invest more money and time into your business and let the rental company worry about the car.
Renting a Car in Los Angeles?
Are you planning an extended trip to Los Angeles? Book through Value Rental Car and save money on your long term vehicle rental. Their services include free pickup and drop-off within 7 miles of their two convenient locations. Value Rental Car also provides rental cars for drivers under 21 and cash customers. They have a wide selection of vehicles to fit your needs. Save money and time on your next car rental with Value Rental Car.