A long-term car rental is ideal for businesses, self-employed individuals or managers who want to have the flexibility of owning a vehicle, without the overall investment of purchasing a car outright.

That’s why this month we wanted to outline some of the aspects of long-term car rental you need to consider before signing your rental agreement.

What is your monthly budget?

One of the ways you could benefit from a long-term rental agreement is that it allows you to budget accordingly. Taking on a long-term rental means that you’re able to control your cash flow and expenditure throughout the year.

Many organisations take advantage of long-term car rentals as the cost of the monthly payment can be offset against taxes.

If you have a specific budget in mind, but you’re unsure about what vehicle is going to be best suited for your needs, then make sure that you ask for advice. Your rental company will be able to recommend a rental contract that suits your requirements.

What will the vehicle be used for?

Whether you’re planning a business expansion or you are attending corporate events throughout the year, a long-term rental agreement gives you more flexibility than owning a vehicle outright.

When you’re choosing your vehicle, there are several things that you need to consider before choosing. These include:

• Where will the vehicle be used – a small city car wouldn’t be suitable if your employee is regularly taking long motorway journeys
• How many people will be using the vehicle – if you’re implementing a carpool policy, then will the vehicle give you enough room for multiple passengers, and their luggage
• What journeys will they be taking – if you’re trying to reduce the fuel consumption and costs of your fleet, remember to choose a car that has higher average miles per gallon (mpg)

At the same time, you need to consider any specific events throughout the year. For example, if you’re giving potential investors a tour of a new location, or your business is expanding, then why not opt for a prestige vehicle? Alternatively, if you’re attending corporate events, you might need a refrigerated van for an extended period of time.

How long will you need the vehicle for?

Most long-term rental agreements start at one month but can roll on indefinitely. Not only does this mean that you have the full use of the vehicle throughout the contract term, but it also means that you don’t have to worry about servicing, maintenance or depreciation values.

Alongside this, some vehicle hire companies are able to offer a discount or a better rate if you’re taking a vehicle for a longer period of time. This is something that you should ask whilst you’re researching all available options.

What are the mileage terms?

When you’re planning on taking out a long-term rental agreement, it’s important that you consider the mileage that you’ll need throughout the duration of the contract. Be realistic, if you underestimate the total mileage to get the overall cost reduced, you could end up paying more in excess mileage charges.

How else will you benefit?

There are several ways that a long-term rental will benefit businesses compared to personal leasing. These include:

• No advance payments required
• Insurance can be provided as an additional extra if needed
• Road tax has already been paid
• You’ll have access to 24/7 road assistance
• Maintenance, servicing and periodic checks are included
• You don’t have to worry about depreciation costs
• Administrative paperwork and fines paperwork is managed for you

In conclusion, there are lots of things to consider when you’re choosing your long-term rental vehicle. Whether it’s for business or personal use, it’s important that you do your research before signing your rental agreement.

What do you think? Have you recently agreed on a long-term car rental for personal or commercial use? How have you benefited? We’d love to hear your thoughts, so make sure you let us know in the comments below. Alternatively, you can join the conversation on our Twitter and Facebook pages.

Remember, if you’re struggling to make a decision on your car rental, then our team are here to help. They’re able to talk you through all the available options, including which vehicle is best suited for your needs. Make sure you get in touch with them if you have any questions.