Advantages and disadvantages of long-term car rental
More people rent a car for a long period than buying a car these days. There must be a reason for that. For some, a long-term rental is much more advantageous.
However, the concept of long-term rental still feels a little unfamiliar to us. Today, I will easily explain the concept, advantages, and disadvantages of long-term rental.
What is a long-term car rental?
New car long-term rental refers to a product used by renting a new car for a certain period. With the popularization of the sharing economy and sharing services, the rental craze began to blow even in the expensive car market .
However, we do not recommend long-term rentals for everyone. This is because the long-term rental of a new car has advantages and disadvantages.
If you are running a private or corporate business, a long-term rental is much more advantageous. The monthly rental fee, which is paid monthly, is treated as an expense, so you can enjoy the tax-saving effect by reducing your income. If you are currently interested in checking out some options, click here for more lease deals.
Businesses have a much higher income tax than ordinary workers, so if you lower your income by creating many expenses, there is a tax reduction effect. Of course, vehicles are also used for business and for personal use.
There is a reason why companies generally use long-term rental or leased vehicles. If you need it, we recommend that you sign a long-term rental contract. However, please note that if you use a billion-dollar sports car for personal use while using it for a part that has nothing to do with business, a tax audit may come out later.
Advantages of long-term car rental: low initial cost
This is the same for regular workers. It can reduce the immediate initial cost burden. Most of the time, you can do it without any upfront costs such as deposit or advance payment.
Credit ratings are low initial cost paid approved Madeira under the conditions warranty insurance in Seoul Guarantee Insurance because it issued to replace this part of thousands that ten thousand won is a product that is available for vehicles without initial costs just a new long-term rental.
Contracting a vehicle without an initial cost burden is a must-have product for those who need a car urgently, although there is no money right now.
The 2nd advantage of long-term car rental: No impact on credit rating/loan limit
In general, when you buy a vehicle, few people buy it all with cash. Most of them have to buy through capital or installment financing products. It also affects other loan products that I have. For example, products like mortgages
However, since long-term rental products are rental services, their credit rating or loan limit will not be affected at all. So, I think it is a very good product for those concerned about the credit rating drop due to installment financing or reluctant to borrow.
Here, cars are not even recognized as property, so not only credit ratings and loan limits. There is no increase in health insurance so that you can use it really reasonably.
The 3rd advantage of long-term car rental: insurance premium included
Many people feel that the monthly rental fee is more expensive than they thought, but insurance premiums are included in this amount. Prices include all vehicles and vehicle tax, insurance, and chwideungrokse, are no additional costs are generated.
Considering this, it may not be that expensive.
At this time, insurance is not under your name, so if you have a short driving experience or have a lot of accident history, you can use it quite advantageously if you are burdened with auto insurance premiums.
Advantages of long-term car rental #5: There is no increase in insurance premiums.
There is no premium even if an accident occurs while driving a long-term rental vehicle. Car Accident La neunge only if it will not stop that inevitable accident insurance premium from being careful with the car repairs will come out awful.
However, suppose you pay only the prescribed amount of liability set at the product management contract time. In that case, you do not have to worry about the accident handling process or costs . You just have to ride it.
Advantages of long-term car rental Sixth: The shipment is quick, and there is no need for maintenance.
It means that the shipment is fast. If you use promotions held for a limited time by rental companies , you can get a low rental fee and quick delivery.
If you compare and analyze contract estimates by various long-term rental companies and find a company that can contract with the best conditions, the price is low, but you can get it quickly. Long-term rental is recommended for those who are in a hurry.
If you buy a car here, it is a property that you need to manage while thinking about the depreciation. Repair fees, taxes, accident handling, but long term rentals are all included in the service.
Periodic vehicle management, For example, engine oil and mission oil replacement should be checked. If you sign up for maintenance service, the rental company will periodically solve everything from the rental company to vehicle management .
7th advantage of long-term car rental: depreciation
It can be free from depreciation. After a new car accident, it can be heartbreaking to see my car's price and used cars dropping every year. If there is an accident here, the price will drop sharply. Besides, the used car price isn't what I sell?
I have to wrestle with the dealer and sell my car for a bargain to a smashing dealer. However, a long-term rental is free from the stress of depreciation because it is a short-term rental anyway .
As long-term rental vehicles are not owned but used, there is no depreciation burden, and you can freely choose to take over and return .
Whether the return is good or the takeover is good, you can choose to take over or return at the end of the contract .
From now on, we will look at the disadvantages of long-term rental.
The first disadvantage of long-term car rental: the license plate is huh, ha, ho
Long-term rental vehicles are classified as commercial vehicles, so the license plate is a license plate that people like Ha-ho Heo are reluctant to use. These days, businesses and individual customers use long-term rentals a lot, so you can often encounter them on the road, and there is no problem with riding.
However, if you care about this a lot, it may be better to use a leased vehicle.
The second disadvantage of long-term car rental: insurance career break
Vehicle insurance career may be cut off. Since the long-term rental fee includes the rental company's insurance, there is no need to pay separate insurance premiums .
However, no matter how long your driving experience is, your insurance career will be cut off three years after you cancel your insurance. If I have a long-term rental car that I can't give up because my accident-free career is too old
You must set the contract period to 2 or 3 years to prevent career breaks .
The third disadvantage of long- term rental of cars : vehicle model restrictions
For long-term rental, some models cannot be contracted in some cases. For example, trucks, buses, and campers are not eligible for long-term rental contracts.
In some cases, it would be good to know that long-term rental car contracts are difficult at places such as entertainment agencies and agency driving.
A fourth disadvantage of long-term car rental: high penalty
The last disadvantage of long-term rental is the penalty. As the long-term rental market is getting bigger, the cost has naturally become cheap as each rental company competes.
Of course, this includes a promise to continue using it for the duration of the contract. In return, you can get a cheaper monthly rental fee.
However, in recent years, rental companies have lowered their profit margins and lower rental fees.
However, I raised the penalty. As the conditions improved, the penalty amount increased a lot when it was midway. Since the initial cost is low, if you easily contract the vehicle and cancel it before expiration, you may have to pay a large penalty.
Therefore, it is recommended to consider whether a long-term rental is necessary or whether it can be operated during the contract period before deciding.
Long-term rental cars can be a disadvantage to someone as much as silver has many advantages. Since this is a product that you use while paying a monthly rental fee, we recommend that you carefully check the merits and demerits and decide carefully.
If you want to rent a car for the long term, I would suggest renting a car from Carley. They are the best service providers to rent a car in Islamabad.
by Habibaditor on 2021-06-21 07:39:48