Long-term truck rental, what is it for?

Whether your business is in the transportation and logistics, healthcare, or food industry industries, the use of trucks can be common in your business. Besides the purchase of utility vehicles, long-term rental is also an excellent alternative. Focus on the benefits of this practice.

Operational advantages

Regardless of the size of your business, long-term leasing of a utility vehicle such as a truck has several advantages.

By using this solution, you enjoya certain freedom when choosing the vehicle. Companies offering long-term truck rental often provide utilities of various makes and models. In addition, you are free to choose the color, options and other specifics of the vehicles. The rents are then determined according to your choices.

This type of company also offers various services tailored to your needs: preventive and curative maintenance, maintenance, fuel management, pneumatic service, insurance, etc. In addition, some rental companies have secure online platforms providing customers with monthly reporting with the list of problems detected on vehicles or necessary maintenance interventions.

This type of rental also makes it possible to take advantage of high-performance vehicles, thus optimizing the efficiency of your teams and increasing the profitability of your business.

Another advantage of this type of rental is the easy management of the fleet. This is because you benefit from a certain stability and clarity in your budget. In addition, maintenance visits are carried out regularly and are planned in advance, thus avoiding unpleasant surprises. Unlike following the purchase of a vehicle, at the end of the contract, you simply return the truck. So you don't need to worry about reselling the vehicle.

Note that by relieving yourself of all administrative and technical tasks relating to the vehicle fleet, you have the opportunity to concentrate entirely on the heart of your activity.

Tax and financial advantages

In addition to the operational advantages, long-term truck rental has financial and tax advantages. This practice allows, among other things, to simplify budget forecasts since the rents, defined at the start of the contract, are fixed throughout the rental period. Rent generally includes the rental of the truck (s), but also their maintenance and other services offered by the rental company.

When establishing the company's balance sheet, your utility fleet is not classified as a capital asset since you do not own these vehicles. Plus, you don't have to devote part of your business capital to buying trucks. Thus, your loans can be allocated to strategic positions. From an accounting perspective, renting reduces taxable profit thus reducing the final amount of income tax. In fact, rents are recognized as an expense, spread over the entire duration of the contract, in your income statement.