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The Advantages of Daily, Monthly and Yearly Vehicle Rental Plans

News2022-07-29 10:00:00

In order to support the efficient mobilisation of daily corporate activities, having a car within a company's inventory is an important factor to take into consideration. However, through a monthly or even annual car rental service plan for such operations can certainly serve as an alternative solution, as it is much more economical than having to buy a brand new car.

Considering that a company’s cash flow ultimately affects the operation as a whole, the company should be wise in regards to the process of procuring operational vehicles. If one chooses to purchase a new car in mint condition, this will incur a higher price; purchasing in large quantities will of course also increase expenses in regards to paying annual taxes.

Currently, there exists quite a number of car rental service providers specifically aimed at providing for a company's overall transportation needs. Especially in big cities such as Jakarta, Bandung, Surabaya and other metropolises, one is able to find vehicle fleets at competitive prices. The type of rental system offered is also very flexible for one’s daily, monthly or yearly needs. However, before knowing more about the difference between a monthly car rental service or an annual car rental service, you must first understand the advantages of renting a car for the company's operational requirements. Here are some of them:

  • Companies Don't need to Consider Vehicle Maintenance Budgets

Through renting a car, the company does not need to think about the vehicle’s maintenance budget. There are no extra costs for periodic service or spare part replacements, considering that the older the car is which is being used, the greater the maintenance costs that the car will incur.

  • The Condition of the Car is Always Excellent

To ensure the customer’s safety and comfort, car rental service companies always carry out regular maintenance check ups on all of its rental vehicles. In addition, car rental companies generally also provide cars that come in new series and types so as to ensure optimal performances from all vehicles.

  • No Need to Bother Thinking about Parking Spaces

In big cities like Jakarta, parking spaces are becoming increasingly limited. If the company has many cars in operation, the company will need to think about parking spaces for all of its working vehicles. It's different if you rent a car on a weekly, monthly, or yearly basis for office operations because it is usually the case that the car is returned to the rental place.

Read Also: 10 Best Fuel Saving Tips for Daily Driving

Familiarise yourself with the Indonesian car rental system

Car rental companies usually provide a variety of services. However, when talking about the duration or length of this rental period, there are at least four different plans used, namely daily, weekly, monthly and yearly based car rentals.

It's a good idea to know what distinguishes the four rental system plans so that you can find the most appropriate one for your company.

  1. Daily Car Rental Plan

Daily car rental services are divided into several durations that can be chosen according to your specific requirements, namely rental for 12 hours or 24 hours. Usually daily car rentals are used for vacations, family events, or private trips, although it is possible for the company to require a daily rental system, such as for business trips. Unlike the monthly car rental system, the distance allowed for daily rentals is more limited, and the coverage area is not that far.

For the cost, daily car rentals are priced at different rates depending on the duration, whether or not a driver is used, and the type of car that is being rented. Even so, it can be said that a monthly car rental service is much cheaper than a daily one.

  1. Weekly Car Rental Plan

Often companies require an operational vehicle for just a few weeks. For example: for business trips or picking up company guests. By utilising a car rental service, the company will benefit from weekly rentals in the following ways:

  • Reduces company expenses. Why? Because expenses will potentially be cut by comparison to buying a brand new car.

  • Companies can freely choose the type of car they seek to rent, whether it's a regular or luxury car. This will certainly add value to your company when driving a luxury car to pick up clients.

  • Companies do not need to hire their own drivers. When engaging in business travels, your employees may be busy, so using diver personnel services provided by the car rental company can potentially be very helpful. Thus, your company does not need to bother looking for a professional driver to hire.

  1. Monthly Car Rental Plan

Companies can take advantage of monthly car rental services for office operations. When using this service, there are several benefits that can be obtained such as:

  • Cheaper 
    When compared to a daily plan, the monthly rent will certainly be cheaper. Therefore, if your company needs a car for longer periods of time, it would be more appropriate if you select this option. So make sure in advance that your company is planning to actually use the car for long periods of time so as to not suffer losses if it turns out that the car is only being used in a matter of days.

It is important to know that any calculations for the monthly rental system will not necessarily add up to a total of exactly 30 days. For example, if you only rent for 25 days, it will be counted within the monthly rental category. This is what you need to make sure of regarding any applicable policies.  Also it is important to make sure that you are not late in returning the vehicle so as to avoid fines.

  • More practical.
    Imagine if you rented a vehicle on a daily basis; in this scenario time will be wasted as you would have to drive back and forth to, from renting the car to handing it back. With a monthly system, you only need to make sure that the car is in good condition. The monthly rental system is also more practical because the maintenance of the vehicle is the responsibility of the rental service owner.

  • There is a maintenance guarantee.
    Even if the car is fully in use by your company for a whole month, the rental company will still guarantee optimal maintenance services. To be more comfortable when driving, it's a good idea to select a car equipped with insurance. That way, you don't have to worry about any damage that the car might incur.

  1. Annual car rental

What if the company needs a fully operational car for a long period of time? The annual car rental plan is the answer to this. In terms of benefits, this payment system is somewhat more flexible. The company only has to pay once for up to 3-4 times depending on the agreement.

Read Also: 6 Car Rental Corporation Terms for Company Inventory

Renting a Car without a Driver: What are the Advantages & Disadvantages?

Usually, long-term rentals use a key-free car rental system so that customers might have more freedom when driving. Given that there are many risks when handing over the car keys to a customer, car rental companies take a variety of preventive measures.

Renters must find out about the rules, terms, and fees through conducting a survey of several rental companies. Usually the rental party will ask for any important documents in order to maintain mutual safety and comfort. What are the documents that are usually requested?

-        Taxpayer identification number (NPWP)

-        Identity card (KTP)

-        Driver's licence (SIM)

-        Family Card (KK)

-        Workplace ID card

-        Photocopy of land and building tax (PBB)

-        Electricity and telephone bills

 Advantages & Disadvantages

There are several advantages of an unlocked system, apart from being freer due to the fact that you can handle the vehicle without a driver, it’s also cheaper. This is due to the fact that the customer or company does not need to pay for the services of a driver. In addition, it is also more comfortable because potentially confidential conversations are not privy to the 3rd party driver.

It is also important to know that this system also has its drawbacks. One of them is that it comes with more requirements, as usually it requires your company to present various key documents. This is useful so as to ensure that the car rental provider can locate your address. Some car rental service providers also apply guarantees considering the many criminal cases where rental cars are driven by reckless and irresponsible people.

It is also important to know if this system poses another major risk to the renter. When any damages, losses, or accidents occur, usually all damage automatically becomes the responsibility of the renter.

How to Choose a Long Term Car Rental?

After knowing how the car rental system in Indonesia works, it's also good to know how to choose the right car rental company for you. Given the need for long-term operations, you need to consider the following:

-        Choose a rental company with a large selection of vehicles. Companies may require different types of cars according to their positions and needs. It's a good idea to choose a car rental that has various types of cars ranging from ordinary cars, luxury cars, to commercial vehicles.

-        The rental providers should be able to be easily contacted. Choose a car rental service provider that has 24-hour customer service. That way, they can help resolve fleet-related issues and problems whenever you need them.

-        Pay attention to the quality of the company's customer services.

-        Low prices do not necessarily mean bad services, and not all expensive rental prices can be guaranteed to be of good quality. So it's a good idea to conduct a survey of several services in your area and be selective when choosing a company.

-        There are several indicators that you can pay attention to in order to find out whether the company provides quality services. For example, pay attention to how customer services respond to you.

-        Observe the condition of the offered vehicle, the cleanliness of the vehicle; take note of the driver and his knowledge of the route, and also whether the company applies a car unit change if damages are incurred during the rental period.

Choose a Company that has Car Insurance

To make the trip a safe and comfortable ordeal, it is better if the car is equipped with insurance. That way when something unexpected happens, you won’t incur any additional costs. It's a good idea to choose a company that helps the insurance claim process in the event of damage or loss.

Going Directly to the Rental Location

Currently there are many car rental companies that provide online booking systems. However, if you plan to rent vehicles in large quantities, you should visit the company directly. That way, you can see the conditions of the cars on offer.

Comparing Monthly and Yearly Car Rental Prices

In order to receive the most optimum price, you need to do a comparison between several car rental services in your area. Often cars of the same series will be offered at different rental prices. By comparing prices, you can also find out the monthly & yearly range of the prices. Next, choose a car rental service provider with a rental price that fits the company's budget. There's nothing wrong with asking for a discount or cashback if your company plans to rent a car on a large scale.

Entrust your monthly or yearly car rental needs to a reliable provider such as MPM Rent. There are various types of vehicles and attractive offers for your company, both for personal and business needs. MPM Rent offers maintenance services, insurance claims, a 24-hour customer centre, and the provision of replacement cars. There are various types of vehicles ranging from luxury cars, passenger cars, logistics vehicles, and heavy duty vehicles. For more information about product services from MPM Rent, visit https://www.mpm-rent.com/en/services.

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