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Long-term car rental vs leasing: which is the best option for your company?
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Managing a fleet involves several strategic decisions, and one of the most important is choosing between long-term car rental and leasing. Although both models give access to vehicles without the need to purchase them, they differ in areas such as flexibility, management and contractual obligations.
In this article, we explain the main differences, the situations in which each option makes most sense, and how Guerin Business can support your company with tailored solutions.
In this article, we explain the main differences, the situations in which each option makes most sense, and how Guerin Business can support your company with tailored solutions.
What is long-term car rental?
Long-term car rental is a flexible option that allows businesses to use vehicles for periods typically longer than 12 months, paying a fixed monthly fee that includes maintenance, insurance and roadside assistance. It is ideal for companies that need vehicles on an ongoing basis but want to avoid the costs and red tape of buying.
Advantages of long-term car rental:
- Predictable monthly costs;
- Maintenance and insurance included;
- No worries about reselling the vehicle;
- Option to adjust the contract to suit your needs.
What is leasing?
Leasing is a finance agreement that allows the company to buy the car at the end of the contract by paying a residual value. During the leasing period, the company is responsible for maintenance, insurance and any other related costs.
Advantages of leasing:
- Option to purchase at the end of the contract;
- Ideal for businesses that want to add the vehicle to their fleet;
- Potential for tax deductions (depending on current legislation).
Disadvantages of leasing:
- Less flexibility to change or return vehicles;
- Full responsibility for maintenance and insurance;
- Extra costs if the contract ends early.
Differences between long-term car rental and leasing
In long-term car rental, the vehicle remains the property of the rental company, and maintenance and insurance are included in the contract. This is a highly flexible solution, allowing the fleet to be adjusted to the company’s needs, and it is recorded as an operating expense, with simpler administrative management.
With leasing, there is the option to purchase the vehicle at the end of the agreement, but maintenance and insurance are the client’s responsibility. It is a less flexible model because the contract is fixed, it is recorded as a financial liability, and the company must handle the administrative management itself.
With leasing, there is the option to purchase the vehicle at the end of the agreement, but maintenance and insurance are the client’s responsibility. It is a less flexible model because the contract is fixed, it is recorded as a financial liability, and the company must handle the administrative management itself.
When to choose each option
Choose long-term car rental if:
- Your business needs cars on an ongoing basis;
- You want to reduce administrative workload;
- You value cost predictability and included services.
Choose leasing if:
- You plan to buy the vehicles at the end of the contract;
- You prefer to add the fleet to the company’s assets.
Understand the costs, benefits and limitations
Long-term car rental offers a fixed, predictable monthly cost that includes essential services. This makes budgeting easier and frees your company from day to day fleet management. Leasing, while it may seem cheaper in some cases, requires more involvement in maintenance and can carry higher risk if unexpected costs arise.
Guerin Business: helping your company move forward
At Guerin Business, we provide flexible short and long-term rental solutions for companies, tailored to each client’s specific needs. Whether you need a car for a few weeks or a fleet for several years, we offer personalised terms and digital contract management, ensuring full transparency and efficiency.
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