Businesses gain flexibility by using short term business car hire
Businesses that require additional vehicles to cover for new starters, special projects, short-term contract staff or to provide mobility for a vehicle off the road often use short term business car hire.
Business car hire offers a flexible, easy to use solution for such times, and can vary from just a few days up to a month or more. But to find the ideal car to suit these short term needs requires access to an extensive rental network on a 365 day, 24/7 basis.
The CLM business hire service provides business users with access to over 1,500 outlets and 150,000 vehicles across the UK and includes established companies such as Thrifty, Enterprise and National as part of its network.
Benefits of a multi-supply network
A multi-supply business hire network like this can bring the following benefits:
- Highly competitive prices through huge collective buying power
- No turn down on all core bookings
- Cars delivered within two hours and vans within four hours
- 24-hour breakdown and recovery service
- Full nationwide coverage
- A dedicated rental team, with one phone call for all of your hire needs.
So a business car hire network of this kind can provide businesses with the answer to many, if not all, of their short term business hire needs.
Longer term business car hire
However, a business may need a hire car for longer than the traditional 28-day daily rental period. Companies that are expanding or taking on more staff to fulfil new contracts, for example, often require vehicles for new starters, who often don’t have confirmed contracts of employment until they pass their probation period.
Ordering a new company car, which is typically leased for three or four years, for someone still on probation is fraught with potential pitfalls – not least the reallocation of the vehicle if the new starter isn’t confirmed as a full-time employee.
One answer lies in a medium-term solution called a mini-lease which is available for three, six or 12 months, and is perfect for new starters or to fill the gap when waiting for a new contract hire vehicle to be delivered.
The mini-lease concept is aimed at cutting costs for companies and, as there are no contracts or lease agreements involved, the mini-lease offer itself is very competitively priced.
By using mini-leases, a company avoids getting locked into costly long-term vehicle leasing contracts, which typically come with significant penalties for early termination.
Mini-leases, on the other hand, can offer the provision of a brand new vehicle for a known period without the need to commit to a long-term contract and without exit penalties.
It is also highly flexible, as the rental period can easily be adjusted. Service delivery is exactly the same as with daily rental and there is typically a substantial pool of brand new vehicles to draw on.
An alternative to the grey fleet
Many companies still allow their employees, especially those that don’t qualify for company cars, to use their own cars on company business and reclaim a mileage allowance – a situation widely termed as ‘the grey fleet’.
However, these vehicles may not always have been serviced regularly, or they may be in generally poor condition. In many instances, drivers will only have social, domestic and pleasure insurance rather than the necessary cover for business use.
If anything were to happen, such as a serious accident for example, while on company business, it would be the company and not the driver that would be liable.
In addition, under the current Approved Mileage Allowance Payments scheme, so-called grey fleet drivers can reclaim 45p per mile for the first 10,000 miles they drive on business and 25p thereafter tax-free – which can quickly mount up if high grey fleet miles are being driven.
It is certainly in the company’s best interests to ensure its employees only use vehicles that are fit for purpose, as there is a whole raft of legislation, including the Corporate Manslaughter Act, by which a company could be found negligible under such circumstances.
Vehicles provided via business car hire, on the other hand, have regular servicing and maintenance in line with manufacturer recommendations. They are also cleaner and emit less pollution, and the likelihood of an accident through malfunction is far less likely.
This provides fleet managers with instant peace of mind. It not only reduces its corporate risk but also reduces the risk to its employees who are likely to be in safer, better maintained vehicles as a result, and at a known cost.
Daily rental invoicing can be a nightmare due to the amount of administration involved. With invoices coming in from different suppliers with administration charges on top, it’s very easy for mistakes to be made.
However, an online rental booking system for business car hire reduces the administration involved and provides a host of benefits.
The ideal system allows online invoices to be generated and e-mailed directly or saved on the system. Management information reports can be generated at the click of a button, with the facility to resolve disputed invoices instantly, plus consolidated invoices for all hires, all instantly available online.
The ideal online rental management system offers:
- Online invoicing
- P11D report at the press of a button
- Multi-supply network
- Accept or decline rental invoices, with an immediate online response when you decline
- Completely paper-free solution
By using an online rental booking system in this way, you can avoid incurring unnecessary admin and rental booking costs, and have a clear view of your total rental bookings – all at the press of a button.
If you would like more advice on business car hire, please get in touch.