As a long-term financial term, it is defined as transactions that will take place over a year. It is seen that the company's equity is put into use for more than one year or its active assets are used for more than one year. It is emphasized that in car rental transactions, the definition of long and short term varies, so the requested services also vary in the financial statements of institutions or individuals. Rental car usage period is generally applied as starting from one day and as long as the need is met.
Short-term rental car services are defined as the period between one day and six months. Long-term is defined as long-term use of more than six months. Institutions or individuals resort to outsourcing services for special and general reasons. Among these outsourcing options, it is seen that car rental services take the first place.
What are the Advantages of Long Term Car Rental?
Rental car preference is a very common type of service in order to eliminate the services that will take place in the long term. It is seen that indefinite rental car service is used to meet many needs such as tour services, VIP services or freight transportation, especially personnel transportation. The advantages of using rental car services in the long term can be listed as follows:
It contributes to the preservation of the current situation of the institutions that do not want a large amount of change in their financial statements by spreading the vehicle usage fee over the periods.
Helps protect company equity.
It eliminates the expenses arising from the purchase of a vehicle.
It allows the reduction of taxes and funds to be paid.
It paves the way for the continuous renewal of the vehicle fleet and, accordingly, to get rid of the maintenance costs. With car rental services, maintenance costs are eliminated.
It contributes to the protection of cash flow.
What are the Advantages of Short Term Car Rental?
It is seen that the use of short-term rental cars is generally requested with the aim of eliminating sudden or short-term needs. This period can be extended by repetition of the contract, provided that it is not less than one day. Vehicle usage period is used as the period specified in the contract. It is aimed to provide a comfortable and quality service with the most suitable vehicles.
The advantages of using a rental car in the short term are; It can be listed as meeting the need as soon as possible, going to price research and providing opportunities such as providing vehicles at an affordable cost or reaching the desired brand and model.
