This today we offer an interview with Giovanni Spera of Finrent, a portal specializing in long-term car rental for individuals and companies.
Car rental has become a definitely coveted solution for both individuals and companies. It is possible to access mobility while finding quite significant financial savings.
Giovanni Spera’s clarifications on long-term rental service
Long-term rental is an advantageous choice not only for individuals but also for businesses, which can benefit from tax breaks to lighten their tax burden thanks to deductions and deductions on costs.
The advantages of renting also extend to the psychological level: the all-inclusive monthly fee offers a peace of mind that is often lacking in managing a car of one’s own. In fact, the installment covers a range of services, including vehicle maintenance, insurance, IPT, roadside assistance and, in some cases, a replacement car.
John Spera illustrates how the long-term rental market has changed rapidly. While in the past the option was limited to extended contracts, today there are more flexible solutions that also suit those who prefer to avoid multi-year commitments: from rental options with only “12 months” to payment based solely on kilometers driven.
Finrent is a leading car rental company. It has been in business for no less than twenty-six years and has long been looking for the right compromise to innovate the services it offers to customers (both business and private).
You pay on actual usage
One of the latest innovations in the industry is “payment based on usage.” Under this formula, companies such as Finrent usually offer the first 1,000 kilometers free of charge and charge the remainder only for the additional kilometers driven.
This option is particularly advantageous for those who drive few kilometers per year, usually between 5,000 and 7,000, and want to keep a car at their disposal without sacrificing convenience. The installment includes a fixed part, which covers the all-inclusive monthly fee, and a variable component, which is calculated based on the actual kilometers driven.
One-year lease payment
For those who prefer a short-term commitment, the 12-month long-term lease option is ideal. During this year, you can take advantage of all the benefits of long-term rental and decide whether to renew the contract at the end of the period.
This solution is particularly suitable for first-time renters or for individuals and companies who wish to change cars more frequently.
Contracts with no down payment
Long-term rental contracts can be entered into with or without an initial payment. By choosing the formula with no down payment, there are no differences in contract terms or services offered compared to contracts with down payment. It is crucial not to confuse the no down payment option with traditional down payments or security deposits.
Several operators in the car rental industry offer a wide range of vehicles, ranging from utility cars and sedans to SUVs and commercial vehicles. This wide range ensures flexible mobility solutions for individuals and companies.
For individuals, as well as VAT numbers and companies, the main advantage of a no down payment contract is the absence of an initial outlay, which allows capital to be reserved for other needs or emergencies. However, it is important to note that the no down payment option usually involves a slight increase in the monthly fee, the amount of which varies and should be evaluated on a case-by-case basis.
Long-term renting offers many benefits, both economic and practical, and is particularly popular because of its “all inclusive” formula. This fixed and constant monthly fee includes all the necessary services, simplifying the economic management of the rental and offering financial clarity and transparency.
Included services include third-party liability insurance, roadside assistance, routine and extraordinary maintenance, and registration, thus eliminating unexpected expenses and potential financial difficulties. This approach makes long-term rental a convenient and affordable choice for many, facilitating economic planning for businesses and individuals.
And what do we know about leasing?
Speaking instead of leasing, we can say that it could be a viable alternative to long-term rental (NLT) and is often confused with the latter, but it works substantially differently.
While NLT offers an all-inclusive solution for renting vehicles, leasing works more like a finalized loan, without interest, but with different payment terms and services.
In leasing, for both individuals and businesses, you have an alternative to buying a vehicle. However, unlike NLT, leasing does not include a wide range of services in the monthly fee. Generally, leasing requires a down payment that can vary between 10 percent and 30 percent of the value of the vehicle, while long-term leasing can be done without a down payment, thus avoiding capital immobilization. This down payment affects the amount of the monthly installments during the leasing contract.
Another distinctive aspect of leasing is the maxi final installment, which allows the vehicle ownership to be acquired at the end of the contract. In contrast, in long-term leasing, the vehicle remains the property of the car rental company and there is no redemption clause.
In summary, leasing offers a solution that requires a down payment and a maxi final installment, without including additional services in the monthly fee, while long-term rental provides “temporary ownership” of the vehicle with an all-inclusive fee, with no possibility of redemption. The choice between leasing and long-term rental depends on individual needs and preferences, considering differences in contract terms and priorities in terms of ownership and services.
Business leasing is particularly advantageous for companies or freelancers who drive a lot of miles, avoiding the purchase of a vehicle that could depreciate quickly. Individuals can also benefit, thanks to the fixed installment and the possibility of acquiring the vehicle at the end of the contract through a maxi final installment.
Companies can also take advantage of the tax benefits of leasing, with the possibility of deducting and deducting up to 100 percent of the lease payment, provided the vehicle is used exclusively for business purposes. In addition, leasing simplifies accounting by paying only one monthly installment, reducing the administrative burden.
Leasing “used-as-new” cars
A more recent and innovative alternative is leasing used cars. As Giovanni Spera explains, companies such as Finrent offer fleets of cars that are already used, but in such good condition that they look “like new.”
Used car leases maintain the same conditions, clauses and features as long-term lease (NLT) contracts. The main difference lies in the type of vehicle: these are cars with relatively short life cycles, between 18 and 30 months, that have received regular maintenance and have low mileage.
This solution allows you to benefit from the conditions of long-term rental, but with the advantage of access to used, well-maintained vehicles at potentially lower costs.
It is essential to read the contract terms and constraints carefully before making a decision. Many leasing and car rental companies offer the option to withdraw from the contract in the event of unforeseen circumstances, but it is important to be aware of the specific terms.
In conclusion, whether leasing or long-term rental, it is crucial to carefully evaluate the contract terms and your specific needs to avoid future financial or administrative problems.
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