Corporate vehicle hire: can it be cheaper to rent than buy?

So your business needs some reliable runarounds. Some vehicles that are fit for purpose and will get the job done – and get it done well.

You might be thinking it's time to invest in a fleet of your own but – as with any bold business move – this can end up backfiring.

It's the age-old argument of renting versus purchasing. Which is cheaper? And which is going to add the most value to your business as it currently stands? 

Let us explain. 

In the realm of corporate vehicle requirements, the decision between renting and buying can be perplexing, to say the least. 

Purchasing a vehicle may seem like the more economical option in the long run – a decision that seems to add value to your business instantly. 

But if you rush in, you might be in for a shock. The hidden costs associated with ownership can soon stack up, contributing to unexpected outgoings. This is especially true if you're buying vehicles that you don't actually need to use each and every day of the year.

The truth is this: for many businesses that require corporate vehicles periodically, it may be more worthwhile to rent your vehicles, short-term and from a trusted supplier.

Let's explore some of the hidden costs of buying a corporate vehicle and why renting on an ad-hoc basis could actually end up being more beneficial. 

Hidden costs of vehicle purchasing

When considering purchasing a vehicle, it's vital that you account for the hidden costs that often accompany ownership. 

Whether it's maintenance, repairs, insurance, registration fees or general depreciation of value, there's an awful lot to consider. This is especially true if this vehicle plays a key role in the smooth running of your business. 

Your entire business could come to a standstill with a single delay, accident or mistimed breakdown. This is where renting can be a real saving grace.

For instance, at Metro Vehicle Hire, we want to keep your business moving as much as you do. This is why all our business rentals include a replacement vehicle as standard. In the event a replacement vehicle is required, we will arrange this as soon as possible.

While buying a vehicle may seem like a one-time expense, these additional financial burdens can significantly impact your company's budget and efficiency over time. 

Advantages of short-term renting

Maintenance

Short-term vehicle rentals can offer a range of benefits for businesses, particularly in scenarios where flexibility and cost management are crucial.

Although daily rental rates can seem higher compared to buying, the absence of maintenance and repair costs, as well as depreciation, can make renting a more cost-effective option in some circumstances.

One of the key advantages of short-term renting is the ability to access a fresh, new vehicle without the burden of maintenance. 

Our rental vehicles here at MVH are always in excellent condition and undergo regular servicing to ensure we're providing the most reliable transportation and service for your business needs.

Renting with us eliminates the need for businesses to worry about selling or disposing of outdated or underutilised vehicles, which of course avoids further depreciation costs. 

Flexibility

Flexibility is another significant advantage of renting a corporate vehicle instead of buying it. Short-term renting allows companies to adjust their fleet size and vehicle types according to the fluctuating demands of their operations.

Whether it's scaling up during peak seasons or downsizing during quieter periods, renting provides the freedom to adapt swiftly without being tied down by long-term commitments.

With this flexibility also comes the ability to monitor a vehicle's suitability for a business's ever-evolving needs. 

Choosing to rent a corporate vehicle short-term offers an opportunity for businesses to evaluate different vehicle models, assess their suitability for specific tasks and make informed decisions about future purchases.

This test-drive period enables companies to gather valuable insights, ensuring they invest in the right vehicles that align with their operational requirements and long-term goals. After all, it's much harder to swap in a fleet of vehicles when you've paid for them all upfront. 

Renting a vehicle isn't just about cost and convenience, it's about breathing space and optimising your ability to grow your business in the right way – without having to make decisions you could come to regret.

So what's cheaper, renting or buying?

The answer is… it depends. 

Although renting comes with a daily rate, this premium allows you to dodge the annoying maintenance costs and hidden fees of ownership.

Not only that but renting allows you to explore a variety of vehicles and ensures each vehicle is well-suited to your business needs, all before sinking thousands of pounds up-front and buying a new vehicle.

However, if you know you'll need a vehicle for a long time, it might make more sense to buy – or at least explore long-term hire.

It's important that you sit down and decide what it is you want from a vehicle in the first place, and whether renting or buying would be a more cost-effective and stress-free option for you and your business. 

We hope this little breakdown will assist in that decision-making process.

Do you want to explore corporate vehicle hire, but could use some guidance regarding your options and what vehicle would best suit your current business requirements? 

Why not get in touch with us? 

At Metro Vehicle Hire, we pride ourselves on our friendly, professional customer service and our fantastic range of vehicles at competitive prices.

Our goal is to ensure you get a vehicle that's right for you, and we will always go above and beyond to keep your business moving 24/7 – 365.