The Long term rental (LLD) is a popular solution for companies that want to optimize their fleet of vehicles without the hassle of buying. Whether for a new or semi-used vehicle, this option allows you to benefit from transport Customized while controlling its costs. In this article, we will explore the concept of the LLD for commercial vehicles, benefits and how it works in practice.
What is long term rental?
Long-term rental is a contract whereby a lessor makes available a vehicle for a fixed term at a monthly rent. Unlike other forms of rental such as short-term rental, here the contract usually extends over several years, often between 24 and 60 months. One of the key features of the LLD is the flexibility it offers with regard to the return of the vehicle at the end of the contract, thus avoiding the problems associated with the discount at the time of resale.
This funding also includes a variety of services including vehicle maintenance and breakdown assistance. These services enable companies to focus on their core business, delegating all the concerns related to the Fleet management. For many, it is also a very efficient way to forecast exactly the budget allocated to each utility vehicle, thanks to fixed monthly payments. Simplicity is a master word with the LLD.
Economic and practical benefits
Choosing long-term rental for commercial vehicles has various economic benefits. By choosing a contract without input, companies do not need to raise significant capital from the start. This preserves their cash flow for other more strategic investments. Moreover, since the cost is staggered in the form of fixed monthly payments, it becomes easier to manage budgets and increase the financial visibility of the company.
In addition to the financial aspects, the LLD also provides access to recent models, and even access to new vehicle, thus guaranteeing a modern image of the company. The practical aspect is not left behind, since elements such as vehicle maintenance or assistance in the event of a breakdown can easily be included in the contract. These are fewer potential sources of stress for the company.
How does long-term rental for commercial vehicles work?
The introduction of an LLD begins with the choice of vehicles to meet the specific needs of the company. After choosing the ideal model, a quotation is drawn up taking into account the specificities requested as well as the fixed duration of the contract. Generally, no input is required, thus facilitating the transition to the LLD.
Once all the details are set, the monthly rent is calculated, covering both vehicle use and services included. It should be noted that these monthly payments include both vehicle maintenance costs and those related to possible breakdowns. Some contracts even offer additional options such as winter tyres, fuel card or vehicle replacement quickly in case of prolonged immobilization.
Customization of the contract
One of the strengths of long-term rental is the Customization contractual terms. Companies can adapt the clauses according to their needs: annual mileage, choice of comfort options or technical equipment (such as integrated GPS). These customizations usually result in an adjustment of monthly rents, always allowing to stay as close to the customer's expectations.
It is also possible to negotiate the terms of intervention related to road risk prevention. Thus, safe driving training modules can be integrated, reducing not only the risks for drivers but indirectly lowering insurance premiums. Cost control and customization according to your needs therefore become the norm with the LLD.
The obligations of the tenant and the lessor
In terms of long-term rental, each party has specific obligations. On the tenant's side, the tenant must use the vehicle in accordance with the terms prescribed by the contract and ensure its proper maintenance, although much of the vehicle's maintenance is returned to the lessor. In the event of exceeding the mileage or exceptional damage, penalties may be applied.
For the lessor, the undertaking results in the supply of a vehicle corresponding to the requirements of the contract. It shall ensure the proper functioning of all associated services, such as assistance in the event of a breakdown or regular maintenance of the vehicle. This partnership relationship greatly simplifies the stakes for users who want more flexibility and serenity in managing their fleet.
Claims management
Although it is rare to think about it first, proper management of claims is part of the shared responsibilities under an LLD contract. In the event of an accident, the tenant must promptly inform the landlord and cooperate fully to facilitate the resolution of the problem. The breakdown assistance intervenes effectively here to help resume normal activity as soon as possible.
Many contracts offer to include insurance coverage in the monthly rent, eliminating the need for the tenant to seek third-party insurance. In case of damage, this greatly simplifies the post-accident administrative process. Once again, early intelligent management of potential hazards becomes more meaningful thanks to long-term leasing.
Simple and economical road transport
Whether you are an independent professional or an important SME, it is crucial not only to consider the price when it comes to building your fleet. Here, the long-term rental offer appears to be advantageous as it ensures optimal road risk prevention through modern vehicles, equipped with all the latest technologies aimed at improving active and passive safety.
LLD is truly a long-term strategic vision. It not only responds to the usual financial concerns, by offering fixed monthly payments, but above all it sets the stage for the continuous modernisation of working tools for any society whose travel is frequent or essential. With its considerable benefits, particularly in terms of saving time and resources, this approach clearly deserves its growing popularity among professional structures.
- Access to a new vehicle without initial fund immobilization
- The fixed monthly payments to accurately forecast your expenses
- Integration of services such as vehicle maintenance directly into the contract
- Flexibility and customisation according to your company's specific needs
- Risk reduction and peace of mind with assistance in case of breakdown
Thus, opting for long-term rental attracts more and more professionals who see it as an excellent alternative to the direct purchase of durable goods. The gain in logistics and administration then leaves room for a vital focus on the main objectives and the sustainable development of professional activity.
