Renting contract
Introduction
The term renting is synonymous with long-term rental of an asset, in this case a vehicle, regardless of its brand, model or segment. Through Renting, a company (the leasing company) purchases a new vehicle, according to the tastes and needs of its client or lessee, and makes it available to them. In exchange, the client agrees to pay a monthly fee, for a period of time and a previously established mileage, which includes a series of very extensive services, where at least maintenance and insurance costs are included.
In Spain, long-term rental (renting) is mainly used by companies as a way of managing their vehicle fleets. This is because those businesses that choose this modality can benefit from administrative, fiscal and operational advantages.
These are:
1.1- Flexibility to increase or decrease the number of vehicles that make up the company's fleet depending on the volume of work.
1.2- Release financial resources from companies. These increase their debt capacity since the rental of goods is reflected, for accounting purposes, as an expense and not as an investment. In addition, it is a fixed fee, which facilitates planning in the Treasury.
1.3- Increase the productivity of the company's human resources, since the company's own personnel are not required for fleet maintenance control tasks, breakdowns, contracting and paying insurance, negotiations with workshops and even possible appeals for fines that may arise, among many others.
1.4 Simplified management and control: allow companies and self-employed workers to monitor and manage their fleet efficiently, ensuring optimal use of each vehicle. In addition, they provide detailed reports on performance and utilization, facilitating strategic decisions and resource optimization.[1].
Differences between Renting and Leasing
These are two concepts that tend to be confused since both are based on the rental of a vehicle to a company, but there are differences in the leasing contract:
In short, leasing is a contract that mixes the rental and the purchase option, ideal for those seeking to convert the vehicle into a long-term investment. On the other hand, renting is the perfect solution for those who prefer the simplicity of an all-inclusive fee.[4].