Long-Term Rentals for Craftsmen (4/6)

The strong points

In terms of Long Term Rental, artisans benefit from the main strengths of the formula, namely, an optimization of their financial resources (preservation of the company's debt capacity for its productive investments, securing budgets, simplifying daily management), and the guarantee of regular maintenance of the vehicle used, and the guarantee of regular maintenance of the vehicle used, a guarantee of comfort and safety for the driver of the latter.

Optimizing financial resources and securing budgets
Acquiring a Long Term Rental vehicle means choosing a complete formula including: the purchase, maintenance, repairs, assistance and resale of the vehicle while maintaining the company's debt capacity. In addition, this formula allows you to avoid surprises and to take advantage of a supported rigorous in the various aspects inherent in the management of your vehicle fleet.

Interests of the approach:

Optimization of financial resources:
From an accounting point of view, the LLD will allow you to maintain your debt capacity for productive investments, to modulate the financial burden of this item of expenditure by distributing it over the duration of use of the vehicle and to take advantage of the expertise and financial surface of your service provider to negotiate attractive rates with manufacturers, insurers, tire distributors, etc.

Securing budgets:
The LLD will put an end to the practice of mileage expense reports, thus simplifying your accounting management, in addition, as your rents are determined at the beginning of the contract, your budgetary provisions will automatically be facilitated.

Tax rules:
The allowable depreciation rate for cars is 20 to 25%. LLD is part of this approach since the various LLD providers generally amortize over a period of 5 years, which corresponds to a rate of 20%.

In general, lease and long-term lease rentals are a charge that is deductible from taxable income for the company. However, the Tax Administration has set a limit to this practice, considering the use of a passenger vehicle worth more than 18,300€ TTC as sumptuary. In such a case, the portion of the rent corresponding to the excess price should be included in the taxable profit.

The right maintenance of the vehicle
Care and maintenance are carried out at a dealership referenced by LLD service providers. This practice makes it possible to avoid the few service providers (less than 5% of French dealerships) who did not give satisfaction with the price, the quality of work or the respect of the deadlines set.

In the world of Long-Term Rentals, the quality of care given by the employee to his own vehicle is decisive. For this reason, the rental company regularly checks the state of maintenance of the vehicle after each visit to the garage. This information is then sent directly to the fleet manager who can then contact the user and ask for accounts.

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