A vacation should be a place to relax and get away from it all, but unfortunately, many vacations are stressful. There's a lot of planning involved, and regardless of how much time you spend planning, some of it can be derailed by full airplanes, late trains or overbooked hotels. During the trip, there can also be budgetary pressures. Hi! My name is Miranda, and I've dealt with all of that. However, I've also found fun strategies for avoiding those issues and hassles. In this blog, I am going to share all the travel and tourism tips I've learned through the years, and I hope they help make your next vacation more fun.
Small business owners often need to hire cars, particularly when limited cash flow prevents them from running a company vehicle full-time. Car rental prices can eat into limited travel and subsistence budgets, so it's important to make sure your small business gets the best possible value for money. If you're starting to see an increase in car rental costs, consider some of the five following money-saving strategies for your company.
Have one dedicated driver on the agreement
Business car hire agreements will often allow you to have more than one insured driver, as the rental company recognizes that you may need to travel in a group. If you or your employees are traveling alone, make sure the rental company sets the agreement up on a dedicated driver basis. This type of agreement is often cheaper than the multi-driver equivalents.
In Canada, small business owners can claim the cost of car hire as an expense on their annual tax return, but it's important to make it clear that the rental was solely for business use. A dedicated driver agreement often helps with this, as it can show that the rental was solely for the use of one employee.
Rent for longer periods of time
Car rental companies often offer discounted rates for hire periods longer than seven days. That aside, if you rent the car on a daily basis and then need to extend the hire, the rental company will normally charge you a standard day rate. If you rent for a week, but return after 2 days, the company will often refund at the pro-rata weekly rate, saving you valuable money.
Check the small print carefully. The hire company may have a clause that allows them to revert your weekly charge to the standard day rate if you cancel early. Don't forget to use your position as a regular customer to negotiate a good deal in these situations.
Apply a lower mileage limit
Rental charges often include a generous mileage limit, or may even allow you to drive as many miles as you like. By lowering the mileage limit, you may find that the day rate decreases, as the hire company can see that you will put less wear and tear on the car. As such, you should always try to opt for a low mileage limit, especially for a single day's rental where you only need to make a relatively short return trip.
Drive under your personal auto insurance
You can often top up a car rental agreement with optional insurance plans. For example, you can take out insurance to protect your damage excess, in the event that another driver collides your car. In some cases, your existing car insurance may cover you for these situations, even though the rental is for business purposes.
Check with your insurer or broker before you hire. Some top-up plans only cover you for any amount above the limit on your personal car insurance anyway, so it's important to decide if you will really benefit from the added protection.
Get a fuel card
A business fuel card allows your people to charge the cost of gas for any car hire to a central account, removing the need for your employees to pay for the fuel and then claim the cost back. In turn, this saves administrative time, and makes it easier to supply simple invoices for your tax return.
Fuel cards also allow you to see exactly where your business is spending money, which can help you make targeted changes without paying somebody to do all the analysis for you. For example, you may see that one employee is constantly doing a lot of miles, when he or she could make better use of video conferencing facilities. A fuel card is a great way to help small business leaders accurately manage how their people spend money.
Car hire with places like Jamieson Car & Truck Rentals is sometimes a necessary business expense, but that doesn't mean you shouldn't look for opportunities to save money. Avoid unnecessary costs, and look for ways to keep your car rental charges as low as possible.Share
3 September 2014