Long-Term Rental for Liberal Professions

The strong points

In terms of Long-Term Rental, the liberal professions 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, a guarantee of comfort and safety for the driver of the latter.

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Optimizing financial resources and securing budgets

Acquiring a Long Term Rental vehicle means choosing a complete package including: the purchase, maintenance, repairs, assistance and resale of the vehicle while maintaining the company's debt capacity. In addition, this formula makes it possible to avoid surprises and to benefit from rigorous management of 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, LLD will allow you to preserve your debt capacity for productive investments, to modulate the financial burden of this expense item 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 a fixed rate at the start of the contract, your budgetary provisions will automatically be facilitated.

Simplification of daily management: In our opinion, the real advantage of LLD is the support of the various services related to the daily management of the car fleet. For example, the service provider is intended to take care of all the administrative and practical procedures related to the delivery of the vehicle: the application for registration, the order of the vehicle registration document, the manufacture of credit cards (fuel card), etc.

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 of €18,300 including VAT as a 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.

An effective support platform

It is a telephone platform responsible for orienting the driver with regard to his problem to various departments in charge of assistance, troubleshooting, insurance or even claims management. This service is a useful complement to the actions of the fleet manager, sales representative and customer manager.
In fact, the number of this hotline appears on the credit card and in the user guide that is given to the user when the vehicle is delivered.

Interest of the service:

24/7 service: The customer benefits from a service accessible on a simple call 24 hours a day, 7 days a week and likely to trigger assistance throughout the country for one of your employees in the event of a breakdown, puncture, fuel error, etc.