The Benefits of Vehicle Rental for Improving Company Profit Margins

Corporate car rental isn't exactly something new, but lately, more and more businesses are choosing to rent cars instead of purchasing them outright for their operations.

And it's not surprising that  renting cars can be a great way to improve company profits while still meeting operational needs, especially during uncertain times as in recent years due to the pandemic.

When you buy a vehicle, you’re not only dealing with the initial cost, you also have to consider the ongoing costs that come with owning a vehicle. For example, maintenance, insurance, fuel, and others can really add up and you have to be fully committed to them.

So, it's definitely worth taking a closer look at what costs you could save by opting for a car rental for your business operations instead.

Cost to Buy a Car

Buying a vehicle is definitely not cheap, and it can really mess with a company’s cash flow. And even if you have set a budget to finance it, you’ll still have to prepare a big down payment.

Not to mention the long-term installments and the interest you’ll have to deal with. On top of all that, the value of the car will likely depreciate over time.

Annual Tax Fee

When purchasing a vehicle, it’s important to take into account the costs associated with owning a car. These include paperwork and registration fees such as PPnBM (Value-Added Tax on Goods and Services), issuance of STNK (Vehicle Registration Document) and BPKB (Proof of Motor Vehicle Ownership), as well as annual motor vehicle taxes.

Although individually the cost may not seem significant, it’s better to consider the overall financial impact when factoring in the type and number of vehicles the company owns, as well as the management of these assets. 

One option is hiring a service agency to handle these tasks, however, this comes at an extra cost and should be weighed against having the company take care of them, which will come at a sacrifice of time and resources.

Insurance Fee

Insurance for corporate vehicles can be somewhat tricky. On one side, it is indeed important to have to protect your assets and avoid any worst-case scenarios, but on the other side, insuring vehicles can be pretty expensive.

And then, premiums for commercial vehicles also tend to be higher than for personal vehicles. So with car rental services, you can certainly save money on this insurance cost.

Regular Maintenance Cost

Keeping your company cars in good shape is important, and regular maintenance is the key to it. Generally, vehicles should be getting serviced every 10,000 kilometers or at least once every six months. The costs can really add up, especially if there are a lot of parts that need to be replaced. 

Costs are definitely a big factor when it comes to renting cars for your company, but there’s more to that.

You can benefit from choosing the right car rental service provider like TRAC. A professional and reputable company like TRAC can offer many benefits. TRAC has served over 3,000 corporations across the archipelago, managing a fleet of over 30,000 vehicles. 

When it comes to renting cars and vehicles for your company, TRAC Corporate Car Rental services is a company you can always rely on. TRAC offers a wide range of vehicles, from passenger cars and commercial cars to buses of different sizes.

Concerned about the rental time. TRAC gives you the flexibility of both long-term and short-term rentals, so you don't have to worry about having any vehicles sitting around unused. This way, you can optimize the vehicle according to your needs.

Besides using official repair shops for regular maintenance and check-ups, TRAC is supported by authorized workshops and partner workshops spread across various cities in Indonesia. So, if you run into any issues with your vehicle, you won’t have to worry because TRAC’s partner workshops will take care of it and with a quick solution.

One of the perks you get when renting a car from TRAC Corporate Car is the replacement car service. Not all car rental companies offer this service.

So you don’t need to worry about the company’s operations getting disrupted if the rented car bumps into something unexpected like sudden maintenance or the car breaks down. Just call the customer assistance center at 1500-009, and it is available 24 hours a day.

Not just for businesses, TRAC also offers rental options for personal use. If you need a car for personal use for the long term, you can check the information here.

For ease of booking, TRAC pals can do it through the TRACtoGo application. Immediately install the TRACtoGo application on the Google Play Store or Apple App Store. And get various interesting promos in it.

Oh yes, for the latest information, don't forget to follow TRAC's social media via Instagram @trac_astra, Facebook TRAC-Astra Rent a Car and Twitter @TRACastra.