The advantages of a central rental company
More and more car dealers with multiple sites are setting up a central company to centralise the cars in their fleet. For example, cars can be rented internally within the various sites, but can also be offered to external users as a rental car or replacement car.
In this blog, we would like to explain why a centralised rental company is a good move for your automotive company, and what ProPlanner can do for you.
100% deduction on car expenses, without burden of proof
For a garage owner, the law on the limitation of car costs normally does not apply to vehicles rented out exclusively to third parties. In practice, a limited deductibility also applies to replacement cars. As a car dealer, it is difficult to demonstrate that vehicles have only been used as a replacement car and not as a demo or staff car.
Thanks to ProPlanner’s fleet software, you can present this burden of proof easily and take advantage of 100% of the deduction on the costs of your rental cars. Compared to a normal deduction of around 60%, this makes a substantial difference.
Fleet Optimisation
By centrally managing your fleet, you can use your vehicles optimally over various sites. If you have too many cars on one site, simply deploy them to another site where there is a shortage. This means you will never have surplus cars standing still, which is detrimental to your profitability. You can also make those cars that are more expensive and exclusive, but not available on every site, transparent to all sites.
By calculating the cars used per site every month, a mindset is created to organise everything as cost-efficiently as possible. After all, every site bears the necessary responsibility and feels the effect of this in the monthly costs.
A seamless transition to B2C rental
Mobility services are the future for every car dealer. By starting an internal rental company, the step to becoming an external rental company is made easier.
B2C rental is not an easy thing to arrange. It requires procedures, knowledge, organisation and the right people. Working towards this step-by-step is therefore definitely recommended.
Introduction to new car types
As a garage owner, you often experience great pressure from some car brands to register as many cars as possible. This is especially true for electric cars, which are not yet being bought en masse by the general public.
An internal rental company certainly offers advantages: on the one hand you can deploy certain car types for use as a rental car, and on the other hand, you can use them as a replacement car so customers can experience the benefits of electric driving themselves.
High-quality second-hand offer
If you opt for a central rental company, you will also see a nice influx for your second-hand department. It is not always easy to offer a wide range of quality second-hand vehicles. But by skilfully selecting the vehicles you put in your rental fleet based on their resale value, you can generate a nice margin.
Smooth internal and external rental with ProPlanner
Now you’ve found out about the advantages, it is highly likely your interest in starting a central rental company has been aroused; but you are also probably asking yourself how to arrange all of this in the practical sense.
Thanks to our user-friendly fleet management software, we offer a ready-made answer to ensure the entire rental process runs smoothly and correctly in terms of the administration requirements. The Internal Rental functionality of ProPlanner allows the central rental company to rent cars to various internal departments or sites and then rent these cars to third parties as a replacement, test, rental or staff car. ProPlanner therefore allows double rental, and you can follow all the loan periods accurately via the clear planning schedule.
Hiring to departments is also provided with powerful billing functionality to generate the necessary internal invoices every month at the push of a button. All the cars are combined on 1 invoice per department.
With ProPlanner, you can even go one step further and set the price for the department by the actual cost of the car, including a small but transparent margin. Each car file offers full TCO of the car and defines a relevant mark-up to start invoicing on that basis.
Therefore, with ProPlanner, you have no doubt about the smart software managing your rental, both internally and externally, and its ability to optimally manage your fleet. Discover more about the functionality.