Rent company cars for employees - advantages of rentals
10 reasons to rent a company car for employees
Company cars for employees can be a steep investment for businesses. Purchasing comes with a high upfront cost, and leasing ties your company to a vehicle for multiple years. There are also added expenses of maintenance and repairs. The cost and commitment make it difficult to respond to economic fluctuations that require companies to nimbly manage costs.
With a mobility solution from SIXT for Business, you can easily plan out your expenses and cancel your rental contract quickly, if necessary. Instead of high initial costs and unexpected fees such as repairs, taxes, and insurance, you can select a vehicle for an affordable monthly fee. At the same time, a company car can reduce your tax burden when filing a business expense as a corporate entity. Meanwhile, if keeping your company car fleet toe-to-toe with your employee headcount is your challenge, long-term vehicle rentals are an excellent choice for companies growing quickly when wait times for buying or leasing are too long.
Allow your employees to enjoy the mobility that a personal car comes with by choosing rental vehicles for your company car fleet. Company cars for employees also make for a compelling company benefit. With SIXT for Business, you will always find the latest models of the top brands for your employees. From spacious trucks and minivans for comfortable traveling and convenient transportation of products to luxurious sports cars to impress important clients or show up to meetings in style: we have something for every customer. You can also select a car according to price classes.
1. Select the size of the car that fits you
2. Use a company car as an employee benefit
3. Enjoy the newest models of premium brands
4. Scale your fleet with little-to-no waiting time
5. Minimize taxation with business expenses
6. Flexibly adjust the length of your contract
7. No investments or bound capital
8. Employees can enjoy cars for private use
9. Keep track of your fleet with SIXT’s tools
10. Repairs and service conveniently included
OUR TIP:
Offer your employees a company car as deferred compensation. This benefit replaces a direct monetary increase in salary, thus rewarding the employees while increasing their ties to your company.
Car rental for company cars: An alternative for your business to buying and leasing
Renting a company car for employees has many advantages compared to traditional buying or leasing your vehicle. Benefit from paying one fixed price monthly, compared to several additional fees while leasing or such unplanned costs like repairs or maintenance that comes with owning a vehicle. Our rates include everything from insurance to vehicle taxes. With a long-term car rental, you can stay extremely flexible as well. Your employees can use the car whenever it is needed, during the high season, projects, or for certain clients.
| Company car rental | Leasing | Car purchase | |
|---|---|---|---|
FIXED PRICE | ✔ | ✔ | possible |
IMMEDIATELY AVAILABLE | ✔ | X | possible |
FLEXIBLE CONTRACT TERMS | ✔ | X | X |
APPROVAL AND VEHICLE TAXES | ✔ | additional | additional |
COMPLETE INSURANCE PACKAGE | ✔ | additional | additional |
MAINTENANCE + WEAR AND TEAR | ✔ | additional | additional |
SEASONAL TIRES | ✔ | additional | additional |
TRANSFER COSTS | ✔ | additional | additional |
LIABILITY INSURANCE | ✔ | additional | additional |
Models of company cars for employees - take your pick!
Please note that with SIXT, you always choose a booking class, so that you always get an available, equivalent car.
Taxation for company cars
Company cars for employees provide a way to reduce the pre-tax profit, and thus an opportunity to also reduce the amount of tax that your company needs to pay. A company car benefits you and your employees. When used as a benefit or reward, however, the employee might want to use it also privately, which comes with some taxation implications.
Keep this in mind when considering a company car for employees:
1. Costs related to a company car used for business purposes do not have to be taxed and paid by the employee
2. If the employee uses the car privately, the private use will be taxes as part of a standard benefit package
3. The private use can be calculated either as a price per mile driven or according to the valuation of the vehicle
4. Learn more about the taxation rules on the IRS website, for example.
How can a company rent a car for an employee?
Renting a car for an employee is a simple process that HR managers, administrative staff, or corporate executives can follow:
1. Define the Needs: Determine the employee’s rental requirements, such as car type, rental period, and purpose.
2. Choose a Rental Partner: Select a reliable car rental company with corporate rental options. Many providers offer dedicated corporate accounts for streamlined booking.
3. Provide Necessary Documentation: Gather the required details, such as the employee’s driver’s license, rental duration, and payment method (e.g., corporate credit card).
4. Book the Vehicle: Complete the booking via the rental company’s website, mobile app, or corporate account portal. Ensure the booking is in the employee’s name.
5. Confirm and Communicate: Share the booking details with the employee and ensure they are aware of the pick-up and drop-off procedures.
Options for company cars for employees
- Long-term rental car (starting from 28 days)
- Short-term rental car
- Sign up, claim your company discount, and book immediately
- Use a premium fleet of company cars
- From the economy/compact to the luxury/special class - book any class!
- Trucks, vans, and other utility vehicles available
- No initial investment costs or sign-up fees
- Always drive the newest models
Benefits of company cars for employees summarized
The economic benefits of renting your company cars for employees are many; you simplify the decision-making process, allow for better planning with a fixed monthly fee, and you save money by booking your corporate rental through SIXT. Additionally, you can use the many administration tools provided for SIXT’s business customers. You are always guaranteed the newest models from each brand, with insurance, maintenance, and the necessary seasonal tires included in the rental car fee. Naturally, you can rent the car for as long as you need it and cancel your contract without additional fees.
A company car also has several advantages for the employee. A company car is a great benefit that the employee can use privately, and the rental costs can be conveniently used as business expenses to decrease the tax burden for your company. A vehicle can also be used as a reward for hard-working employees, and each person can flexibly get a company car that fits their needs. The corporate fleet at SIXT includes larger vehicles like SUVs, trucks, and vans, all ideal for transportation, as well as a range of convenient compact cars for a budget-friendly alternative and several impressive luxury vehicles.
To rent long-term company cars for employees from SIXT, you start by signing up online in a few steps. You can easily check the availability of vehicles and car classes in your area and even get an offer with flexible contract terms completely free of charge. When you have selected the perfect company cars for employees, you will be supported throughout your journey with SIXT. With a dedicated account manager and our 24/7 customer care team, you can get help and answers to your questions at any time.
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