What is long-term rental?

Long-term rental (or contract rental) is a service which shares the features of leasing and car rental. Instead of simple car rentals, we provide complete Transport Solutions for our business clients. With our services, your company no longer needs to create and support transport divisions, to control vehicles' technical conditions, to account for accidents costs, and to dispose of used cars. Not only do our solutions make the logistics of fleet service (servicing, winter tyres, insurances) easy, but they also ease finance management and accounting, and make the need for supporting replacement cars redundant.

Thanks to contract rental, our clients do not have to raise additional funds for the purchase of car fleet. The agreement can be made for varying periods - from one month (using the currently available vehicles) even up to a number of years (the vehicles are chosen by the Client). The prices vary according to the time of the contract.

The long-term rental program consists of the following elements:

  • Car purchase financing.
  • Full car insurance throughout the contract period (Polish AC/OC/NNW/KR insurances).
  • Car fleet management, including:
    1. car registration,
    2. car preparation including additional equipment set-up,
    3. full management and financing of car servicing and repairs,
    4. providing of replacement vehicles in case of emergencies,
    5. full management and financing of theft and communicational accidents costs (replacement vehicles are provided),
    6. full management and financing of tyre replacements (incl. seasonal replacements),
    7. full management and financing of road assistance (incl. driver care).
  • Collection of vehicles after the contract period.
  • Selling of vehicles after the contract period.
  • Covering the costs of actual value loss (depreciation) of vehicles.

Profits for our clients:

  • No need to create or maintain the transport division of your company.
  • No need to raise funds for car fleet purchases.
  • Amelioration of balance indicators (decreasing of balance sum, decreasing of financing indicators) and some of the result indicators (increase of the own capital return rate) of the Client. It is a matter of crucial importance in negotiations with financing institutions or in ownership disputes, especially in case of complex businesses.
  • Guarantee to cover all the costs of car operation. The costs borne by the client are only fuel and operational liquids.
  • All the costs of car service, emergency and regular repairs are borne by the rental company. The costs not covered by the rental company (resulting from conscious devastation, damages caused by use of alcohol etc) should be paid by the Company's employees who induced them. We reccommend that the company introduces appropriate regulations in its work contracts.
  • The client receives only one invoice monthly, with a set price. It makes it easy to foresee and plan the costs of communication. It also significantly reduces the costs of accounting of numerous minuscule invoices.
  • The exchange of the fleet after a set time will not induce unexpected costs nor will not make it possible to finance and maintain used cars till the moment of their sale.
  • Any damages caused to the vehicles (resulting from accidents, malfunctions or thetfs) do not immobilise the Company's employees, as a similar-class replacement vehicle is provided. It is worth stressing that in case of leasing, the receiving of compensation usually lasts for few months, during which the client is still obliged to pay.
  • Flexibility and speed. The rental of small car fleets (several cars) can be executed within few days. The Client has always the possibility of temporary extending of the fleet with preferential short-term fees (e.g. representative car rental for the CEO or several additional vehicles for a few days/weeks).
  • The costs of rental are usually lower in comparison to the total costs of fleet ownership. It is a result of our company's experience in the car business. This helps to lower the car operation costs.

Who can benefit form long-term rentals?

  • Companies which operate seasonally or those who require vehicles for set-time contracts (financial services, developers, technical services for other entities).
  • New companies or those operating on dynamic markets, when the estimates for actual transportation needs are hard to make. This also includes companies which risk sudden collapse in the demand for their products/services. Disposing of own car fleet is a cumbersome and expensive task.
  • Companies which invest much, so that their credit capabilities are limited, especially in cases when car fleet purchase would impact it significantly.
  • Foreign companies' branches with limited decision-making capabilites. Other companies in which transport divisions are redundant.
  • Companies struggling with bad economic conditions, in order to lower the costs of operation.

To sum up:

It is worth noticing that even in case of contracts amounting to only several vehicles, the costs may be significantly lower than operating costs of own fleet. It should be remembered that the operation of fleet involves numerous factors, including purchase, service, insurance, personal costs, accounting and finally repair costs. The management of a car fleet consisting of tens of vehicles requires a regular, separate business enterprise with its budget often exceeding one million zlotys, although these funds are not used for the Company's primary operations.

In case of long-term rentals exceeding 6 months, we provide a possibility to negotiate and suit our offer to the Client's requirements. Both types and equipment of cars can be chosen by our Client.

a The agreement can be made for varying periods - from one month (using the currently available vehicles) even up to a number of years (the vehicles are chosen by the Client).