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Rent or Buy? A short Illustration of why some of these NGOs may prefer to Rent vehicles over buying their own.. NB: This is for illustration purposes, It is not in any way insinuating Renting is better option than buying.. Each will be best depending on your own needs.While ..
..this will be focusing on some NGOs, the concepts may also apply to any other Organisation or even to Individuals.For illustration purposes only, this does not constitute any form of advice & any decisions you may take in the future you alone are still wholly responsible..
Without further ado, lets see..
1.FLEXIBILITY
Most of them prefer Latest model Fortuner 4x4 vehicles, renting offers them flexibility to always pick the latest model with no switching costs or without having to worry about disposing the redundant models and purchasing new ones
1.FLEXIBILITY
Most of them prefer Latest model Fortuner 4x4 vehicles, renting offers them flexibility to always pick the latest model with no switching costs or without having to worry about disposing the redundant models and purchasing new ones
2.MAINTENANCE
Most often than not, the contracts are such that the owner of the Vehicle takes care of all the maintenance & ensuring its still in perfect condition and also enough fuel to carry out all duties of the Organisation.Its up to the owner to worry about those
Most often than not, the contracts are such that the owner of the Vehicle takes care of all the maintenance & ensuring its still in perfect condition and also enough fuel to carry out all duties of the Organisation.Its up to the owner to worry about those
http://3.HR COSTS
When you choose to have your own vehicles usually you are going to have to hire more drivers.. Cost of Advertising their positions? Induction costs? Their Salaries? Having to release them from the job when the project is over or having to pay them..
When you choose to have your own vehicles usually you are going to have to hire more drivers.. Cost of Advertising their positions? Induction costs? Their Salaries? Having to release them from the job when the project is over or having to pay them..
..even when they are not that much useful cause of projects? Usually with the rental option the owner also brings along their driver & when rental contract comes to an end the Organisation has less to worry about in terms of what will happen to drivers
4.IMPAIRMENT
Some of the NGOs work predominantly deep in the villages & highlands where roads are not very good, the implication is that cars will most probably be worn out in no time and If you are renting you can always dump the old ones and pick ones you are comfortable ..
Some of the NGOs work predominantly deep in the villages & highlands where roads are not very good, the implication is that cars will most probably be worn out in no time and If you are renting you can always dump the old ones and pick ones you are comfortable ..
..with, for ones you own you would most probably have to keep buying New cars too frequently for your liking (This point has a lot in common with point 1 on flexibility, almost an extention of that point)
http://5.TAX BENEFITS
Wait, Tax? Yep, Tax. With this one will deviate a bit from just NGOs and apply to Private companies too making profits, the entire rental payments will all be written off as a tax deduction..
Wait, Tax? Yep, Tax. With this one will deviate a bit from just NGOs and apply to Private companies too making profits, the entire rental payments will all be written off as a tax deduction..
Mhh... Maybe will consider Disadvantages of Renting over Buying also, or maybe not. Time will tell 
. But then we have Pros & Cons, at the end of the day you keep a balance and make a decision
. But then we have Pros & Cons, at the end of the day you keep a balance and make a decision
