Is taking a car on Rent is the Best Option?

Most companies needs vehicles for the Travelling of their executives, Foreign Guests. The question arise whether to take cars on Rent or Purchase own cars it means whether to insource the Travelling Department or Out source this Department to another Car rent service provider company

Following are the Benefits of insourcing the Travelling Department

a)      When companies establish Their own Travelling Department the vehicles would be available at any Time to Travel

b)      By having own Travelling Department the company can save the car rental cost

c)      If the company purchase it s own  cars then due to the Depreciation it can save the tax liability

d)      When companies take car on  Rent they need to follow  some terms and conditions. By having own car there is not any requirement of any terms and condition

Following are the Benefits of outsourcing  the Travelling Department

a)      When companies insource travelling Department there is require huge capital for the purchase of Vehicles, garage, e.t.c . By taking car from any other car rent service provider the company can invest this capital another place to get the maximum return on investment

b)      Driver and repair and maintenance cost mostly bear by car rent  service provider companies, so by taking cars from car rental companies save the company repair and maintenance and Driver cost

c)      Establishing the Travelling Department for the Travelling of their executives and Guests has the less strategic importance so it is better to out source to other car rent service providers companies

d)      Car rent service Provider Companies has the Expert Drivers so the company by taking cars on rent can provide the safe travelling benefits to their executive.

Car Rent service Providers continue Replace their car every year with new model to remain competitive, so by having own cars it is difficult and costly to purchase new 

a)      model every year, so by hiring cars from car rent service providers to get the latest model cars for travelling

b)      By having own car there is require to set up a proper administration department who can arrange the vehicles and manage Drivers it cost more to the companies, This cost can be avoided by taking car on rent.

    One Thing which is important the Decision whether to take car on rent or     Purchase your own car is depend upon the number of transactions. For example a company need cars 3 to 4 at the one time and its Demand for car fluctuate over time ,then in this situation Taking car on rent is the best option.

     Whereas where company Demand is to having only one car at one time then it is better  to purchase own vehicle

      Reducing cost  while taking car on rent need to consider, while  Taking a car the companies need to carefully negotiate the terms and conditions to avoid any inconvenience in future.