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Why SIXT+ car subscription is beneficial for businesses
In today's fast-paced world, companies need to become increasingly dynamic, and car subscription significantly helps them adapt to changing circumstances without imposing long-term commitments on entrepreneurs.
The most significant advantages of car subscription are as follows:
Car subscription is a service that allows you to rent a new or slightly used car for a fixed monthly fee without long-term contract obligations.
Unlike traditional car leasing, car subscription includes all car operating costs, including insurance, maintenance, normal wear and tear repairs, tires, and seasonal tire changes.
This means that the company can accurately plan its expenses and avoid unpleasant financial surprises, such as an increase in the EURIBOR rate.
Financial flexibility and predictability. Companies can adjust the number of cars according to their current needs without taking on long-term financial commitments.
No balance sheet liabilities. Subscribed or leased cars do not have to be included in the company's balance sheet as fixed assets; they are off-balance sheet liabilities.
Simplified tax management. The service provider includes or administers the relevant tax payments in the payment, such as vehicle operating tax or company light vehicle tax.
Simplified company fleet management. Frees up time and resources for other company needs. No need to invest time and resources in car management – the service provider takes care of it.
Predictable expenses. No need to worry about sudden increases in, for example, the variable EURIBOR rate or the price of OCTA insurance policies in any given month.
You can start with one car. To get the best terms, you don't need to agree to use dozens of cars.
Quick decision-making. The decision to subscribe to a car is simple and straightforward – the contract is usually signed within one business day. Company data is evaluated immediately, without any complicated procedures.
Low contract fee. A contract fee may be applied for car subscription, which is significantly lower than other long-term rental service commissions and initial payments.
Employee motivation without long-term commitments. It is possible to provide an employee with a car for work and personal use without taking on long-term commitments or administrative burdens.
Let's look at an example where a company chooses to subscribe to a mid-range car with a monthly payment of €500. This payment includes everything from insurance to tire replacement.
In comparison, when taking on a traditional financial or operating lease, the following payments must be made:
In addition to these costs, time resources must also be taken into account – a company employee must take on the management of the car fleet, keeping track of all or part of the above-mentioned costs.
On the other hand, if a company chooses to purchase a car, the initial investment is significantly higher, and the aforementioned additional costs follow, which reduces the opportunities to invest this money elsewhere.
Below, we will look at examples of how car subscription services can be useful for companies in various industries.
Flexibility. The technology sector is widely known for its rapid growth and changing needs. Car subscription provides such companies with the necessary flexibility, allowing them to quickly adapt to changing employee numbers and projects without long-term commitments.
Company image. The latest generation of cars, including the most modern electric cars available for car subscription, help improve the company's image by demonstrating the values of innovation and sustainability that are essential to companies in this industry.
Mobility. Sales and customer service professionals often need to be "on the road" to visit customers. Car subscription for such companies provides the necessary mobility while reducing the administrative burden associated with car management. As part of the subscription, it is possible to select the mileage required for each customer region.
Positive first impression. A high-quality, modern car can help create a favorable first impression on potential customers, which is essential in the sales process.
Efficiency. It is essential for logistics and delivery companies to ensure efficient and reliable transport. Car subscription offers the latest cars with a high level of reliability and a replacement car included – fewer delays in deliveries.
Seasonality. These companies often face seasonal fluctuations in demand, which means that at certain times they may need a larger number of vehicles. Car subscription combined with the company's short-term rental program allows for flexible adaptation to these fluctuations by increasing or decreasing the number of cars depending on current needs.
Project-based work. Advertising and marketing agencies often work in a constant project mode, which means fluctuating demand for staff and resources. Car subscription allows such companies to quickly adapt to the requirements of new projects.
Creativity and brand image promotion. Modern and stylish cars can serve as part of a company's brand, reflecting its creativity and modernity. This can be especially important when an agency wants to highlight its unique approach and make a strong first impression.
Changing locations. Construction projects and engineering often require employees to be present at various, often remote, work sites. Car subscription provides the necessary mobility, for example, to supervise a construction site, while offering vehicles suitable for working in the toughest conditions – SUVs, off-road vehicles, crossovers.
Project duration. Given that construction projects can last from a few months to several years, car subscription allows companies to flexibly adapt to changing vehicle demand during the project.
Surveying of territories and objects. Scientific research institutes that conduct field work, such as biological, geological or environmental research, require specific vehicles to reach hard-to-reach research sites. Car subscription allows scientists to flexibly choose suitable vehicles according to the needs of a specific project without increasing the overall research costs.
Regardless of the company's field of activity, there are many benefits that car subscription offers to companies. Most of them can be described in one word – peace of mind, because car subscription reduces the need for fleet maintenance and administration.
It is also much easier to predict cash flow, as the monthly fee for a subscribed car does not change during the contract period.
