There are more and more opportunities for business to have a car – which ones to choose? – What is happening in Kaunas

Some time ago, when thinking about adding to the vehicle fleet, companies first had to carefully count the money accumulated in their accounts – owning a car was equal to the right to own it. Over time, more and more useful offers appeared on the market, and perhaps the most common one is the purchase of cars by leasing.

But it is not limited to him. Responding to the various needs of different businesses, service providers offer even more convenient and flexible ways of owning vehicles, such as car rental or even subscription.

Car rental activities – what determines its popularity?

Although many are still used to seeing a car in the line of fixed assets of a company, long-term car rental has a number of advantages, due to which more and more companies choose this particular service.

After choosing a car and deciding how long the company will use it, it is enough to agree on additional services with the rental company. Then, from the signing of the contract until the car is returned to the company, the car will only be a fixed amount in the cost table.

Concerns such as unexpected car repairs, CASCO insurance or even seasonal tires and their replacement are usually included in the monthly fixed fee, which not only facilitates the accounting work, but also allows you to accurately predict the future costs of the fleet. The only variable left is fuel or the cost of charging an electric car.

Leasing is still popular

It is true that operating a car is sometimes still compared to car leasing. They have similarities, but you can also find quite a few differences, he says the portal’s communication specialist Gintenis Dauparas, who is well acquainted with the ways of purchasing cars and their intricacies.

“The answer is hidden in the name. One is leasing, the other is renting. In order to drive a new car for the next few years, you can use either method. If we were to imagine a situation where a company buys a new car with a residual value for five years, there would be several fundamental differences”, the interviewer explains.

Naming them, G. Dauparas mentions that by choosing a lease with residual value, after the end of the payment period, the customer can purchase the vehicle under pre-agreed conditions.

“If the car was purchased through leasing, the company can pay the balance to the bank and the car becomes its property. If you don’t want it, you can give it to the buyer or sell it for a higher amount than the remaining amount to pay,” says the specialist.

“WeFleet” long-term car rental / Photo of the organizers.

Those looking to lease a car may find that in some cases the monthly payments are lower, but that’s only part of the cost. Unlike car leasing, the customer has to pay a down payment before receiving the car, and during the entire period of use, any non-warranty breakdown, car insurance, tire changes and other operational concerns are on their shoulders.

The car subscription is intended for those who want convenience

Car leasing, like leasing once, is also evolving, and the companies that provide it are offering businesses even more convenient ways to own a car. The company “WeFleet” was the first in Lithuania to offer business representatives the opportunity to purchase a car service subscription. This company offers not only the latest cars, but also flexible terms of their use.

The word “subscription” is now found in almost all areas of life – residents subscribe to video content, computer games, or even daily freshly prepared food. All this allows users to get a certain product or service much more easily and conveniently, so renting a car with a subscription basically works the same way.

“The car can be taken for a season or for a longer or shorter period, and after it has been used it can be returned, and the monthly price is known in advance. Of course, fuel costs also contribute,” says G. Dauparas.

Companies that need a car just need to fill out a request on the website, receive confirmation and additional information within one working day, sign the contract electronically and wait for the car at your office.

As with other subscription services, you won’t have to worry about anything else here – CASCO insurance, seasonal tires and their replacement, road taxes and technical service are included in the fixed monthly payment. Car subscription users can exchange their vehicle for another vehicle of the same, newer or even of a different class that they prefer.

Thus, it is always possible to use the car that best meets the needs of both the company and the employees. It can also become an effective tool for motivating employees.

“WeFleet” long-term car rental / Photo of the organizers.

Subscription and activity rental: there will be no differences in the future

Although long-term car rental is still a popular and popular service, it is already being overtaken by the subscription service in terms of its flexibility and attractiveness to the user. Global trends suggest that leasing companies are slowly starting to offer mobility as a service. Mobility as a service, MaaS) – this is what companies in Lithuania are already using.

The relevance and popularity of this service in the future is illustrated by the fact that it is already provided by car manufacturers themselves. Car subscriptions can be ordered directly from manufacturers such as Hyundai, Volvo or Jaguar Land Rover. Even luxury sports car manufacturer Porsche offers to own a car for a monthly fee.

And although subscribing to a car in this way, directly from the manufacturer, is currently only possible in a few countries, the British portal “The Car Expert”, which reviews the transport market, writes that this activity should expand in the near future, as manufacturers are increasingly looking for more profitable business models and targeting the new generation customer needs.

“This service can be beneficial, for example, to companies that only need a car during the season and it can be a money-saving alternative,” observes G. Dauparas.

Convenience, flexibility and clear forecasting of costs for business are extremely important criteria, so in the future more and more companies will use the subscription service. This allows for a flexible response to changes in the number of employees or workload, and a new car does not become an additional headache for the company. Read more here.

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