Long Term Rental
Long Term Rental is now a significant and strategic choice, which places various skills directly involved in companies. The supply of cars affects the field of Human Resources, Purchasing and finally that of Administration-Finance and Control. But what are the reasons that lead to a greater proportion of large-sized company and multinational corporations to opt for this mobility solution? We at LeasePlan, attentive to the needs of our customers, keep pace with the changes the world of work, of which we have identified three: the first has to do with cultural aspects, the second is linked with the economy and the third can be detected through budget cost lines. These basic motives are closely related to area of management of a company that involves responsibilities of decision-making.
The cultural forces: a fundamental lever for Human Resources
Those who are responsible for managing human resources know that employee satisfaction, that of those who are in effect internal customers, can significantly contribute to the achievement of the ambitious goals of the company. For this reason many companies are pursuing the use of incentives through the allocation of benefits, while rewarding employees and motivating them to work better.
Long-Term Rental fits perfectly into this framework of loyalty because, in line with the current economy, in which providing benefits has now permanently replaced the concept of ownership. On the one hand it lowers the cost to the company and on the other offers the employee the perception of possession, giving him the positive experience resulting from the use of the vehicle, which has a highly symbolic and emotional value. Changing their car gives the perception of value of a new car that is safe and provides the prospect of higher status, climbing the corporate ladder. It is an essential benefit for employees, a plus that, thanks to the support of LeasePlan, becomes easier to manage and easier to enjoy.
Savings: a good incentive for the industry Purchases
We know that car hire costs less than a purchased fleet because it allows you to pay only for the use of the vehicle. But that’s not all: buying a car, for example, it is easy to run the risk of not using it at its best or maybe finding out that you have taken the wrong decision, which unfortunately can only be rectified with the purchase of another car. By choosing Long-Term Rental, buyers who have to manage all aspects of procurement of goods and services required for mobility activities, don’t simply provide the company with considerable cost savings on current expenditure but also ensure that the practice of leadership of the company fleet, operational, practical and management benefits are immediately apparent. At LeasePlan we guarantee the performance of rental cars for a certain period until they are returned, so in fact we relieve our customers of the burden of responsibility for termination decisions, and offer the opportunity to change the vehicle. In full harmony with the cultural values described in the previous section, we renew and enrich the positive experiences of drivers each time.
Effective control: the key to Administration
The function of finance and control is paramount in companies (multinational and SPA, in particular) who prefer to focus energy and resources on reducing the risks caused by uncertainty and unpredictability of the economy. In this context, ownership of cars in particular, is an expensive item for businesses, forced to include vehicles in the budget (as an asset) and deal with the challenge of managing the vehicles. This can be avoided with Long-Term Rental as the fee allows customers to remove the car from the balance sheet under capital expenditure and to include it in cost expenditure, and to have a single "index number" summarizing the cost of that asset for the entire contract period. What exactly does this mean for the Boards of Directors that we support? They finally have a clear idea of the expenditure incurred and that of the next three years, with the net benefit of being able to create a consolidated balance sheet of the fleet, in line with the accounting policies common to almost all businesses.
Staff loyalty and retention. Savings on current expenditure. Setting up effective accounting. Three integrated benefits, for your company, for a shared and problem-free car fleet: It's easier to leaseplan!
