JSPR - Press office: Leasedrive Velo - Car rental – the cheaper business mileage option







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Leasedrive VELO

Car rental – the cheaper business mileage option
10 January 2006

Countrywide Car and Van Rental, one of the largest short-term corporate vehicle rental distributors in the UK, believes that many companies are over-looking the tremendous savings to be achieved by using car rental. Compared to reimbursing an employee business mileage for using their own vehicle, the provision of a daily rental vehicle could easily represent a 400% saving.

Commercial director, Roddy Graham said: “Where companies rely on pool cars or employees using their own vehicles for business travel, they often overlook the cheaper car rental option. Unless a company is achieving a minimum 75% overall utilisation rate for each individual pool vehicle, the running of a pool car fleet is seldom economical. And where a company relies on employees using their own vehicles on company business they are probably paying more out in expenses than they should and exposing themselves to charges of not fulfilling their occupational road risk, duty of care and work-related road safety obligations.

“Take a typical trip from central London to central Birmingham. The return journey represents a total distance of 250 miles. A company paying a mileage allowance of 40 pence per mile would pay its employee £100. According to American Express, the cost of processing an expense claim could be as high as £44 per claim. So the total cost of the business trip to the company would be as much as £144. Compare this with a typical daily rental rate of £30 per day. Daily rental would be 380% cheaper!

“Insisting that non-company car drivers use a daily rental vehicle would also give the company additional peace of mind, knowing that they had provided a vehicle fit for the purpose, which was properly serviced and insured. The company would have fulfilled its duty of care responsibilities and its directors would not be exposed to potential individual corporate liability.”

Countrywide customers benefit from a special all-inclusive pricing policy including free unlimited mileage. Deliveries can be arranged with as little as two hours’ notice. For customers wishing to book by phone, a single reservations number – 0871 271 8855 – covers both local or national vehicle rentals.