Cutting costs

Using Daily Vehicle Rental Wisely

When it comes to cutting company car costs, the temptation for many smaller businesses is to encourage staff to use their own cars for business. However, this is fraught with difficulties with the strengthening of Corporate Manslaughter legislation in April 2008.

The business needs to know if these privately owned cars are adequately insured for business purposes, fit for the job, fully maintained, and covered by roadside assistance. It can be an administrative headache, costing more than any potential savings. This leaves the alternatives of paying cash for company cars or contract hire / leasing.

Flexibility is key in business and never more so than when the future is shrouded in uncertainty. Daily rental is a viable alternative to vehicle purchase, giving the certainty that employees are travelling in safe and reliable vehicles. Similarly, business uncertainty means that employers may not want to commit to leasing vehicles on a typical three or four-year contract with the risk of financial penalties if terminated early.

Using short-term hire means that vehicles can be returned at any time without charge if business demand drops or if business activity increases or circumstances change – perhaps due to seasonality – then extra vehicles can be immediately added.

Daily rental offers the following benefits:

  1. Quality well maintained vehicles – most are under 6 months old.
  2. Vehicles that are fit for purpose – Whether it is a fuel efficient car for a long journey or a small van for a delivery, daily rental provides the flexibility to chop and change the fleet to ensure vehicles are always fit for their purpose.
  3. Ready to meet demand – From just 1 day to 6 months or more flexible vehicle rental means SMEs can upscale and downsize their fleet according to seasonal and fluctuating demand with no long-term commitment.
  4. Control – Rental reservation systems offer SMEs the flexibility to set agreed car groups for employees to rent, ensuring that any travel policies are adhered to.
  5. In an emergency – 24 hour roadside assistance ensures employees can rely on their rental provider in times of distress or difficulty, night or day

Insured Rental cars can be covered by either the rental company’s insurance or a company’s own insurance so your company can rest assured the car will always be adequately covered for the journey

Make sure any rental cars are used correctly and sparingly, only when needed.

Watch out for poor organisation, making a booking for two days when one will do.

Petrol Tank Fill-ups

Make sure your drivers refill the fuel tank to the level when it was delivered so you avoid expensive re-fuel costs.


Where possible use you own company insurance, it will be cheaper and easier to negotiate with if things go wrong.


This is really important – make sure employees take responsibility for inspecting the vehicle thoroughly when checking in a rental vehicle including the paintwork, tyres, windscreen, tools and lights for any damage. Also get them to check the interior and make sure all the controls work.

Employees should note all faults on the delivery note, keeping a copy. When the vehicle is returned make sure the paperwork agrees with the vehicle’s condition and obtain a signature from the pick up driver that there is no additional damage. If your employees have cameras on their phones, get them to take pictures.

Daily Rental Provides:

  1. Financial advantages
  2. Environmental benefits
  3. Helping businesses comply with their occupational road risk management responsibilities

Financial Advantages Of Using Daily Rental:

  1. No early settlement penalties
  2. No fixed period
  3. No fixed mileage
  4. No advance rentals
  5. No fixed contract – pay as you go

Leave a Reply