Frequently asked Questions
Why should I choose FlottaMan Zrt.?
FlottaMan Ltd. is 100% Hungarian-owned. Our employees have 25 years of vehicle dealer and fleet management experience. We want to save those who want a car from the risks caused by purchasing, operating and selling a car! We believe in trust and humanity!
We sincerely help and are happy to talk about cars. We give advice if there is a need for it and we do not cut off contact even after the sale, instead we pay attention to our partners. We always view our company's operation, processes and the quality of our service with the highest standards. Our colleagues are competent and experienced. We manage your company car and fleet. By contacting us, you can count on a long-term and reliable relationship!
FlottaMan Ltd. provides brand-independent consulting. When making recommendations, we always take into account the value retention and service experience gained over the decades. We help you choose a car in a modern, up-to-date way, by examining environmental protection indicators (WLTP, TCO indicators). We have national coverage on both the service and dealer fronts.
What is the long-term car rental? What is an operating lease?
Long-term car rental is a way to get a vehicle without having to spend a lot of money. We can rent a car on an annual basis, but for up to 3 months, and if necessary, the term can be flexibly extended.
Otherwise, we can simply return the vehicle at the end of the last month of the agreed period. So we can rent a car with a fixed term (from 3 months to 4-5 years), at a fixed monthly cost without any other hidden costs.
Operating leasing means a permanent lease. So it's nothing more than renting a device for a fixed period of time. We can permanently rent/lease a car, an apartment, a serious printer and even an entire building for our company.
What are the benefits of a long-term car lease and fleet management? Let's look at the advantages of a long-term car lease from the financial and company management side.
Financial benefits:
- You will receive a single monthly rental fee invoice, which includes all vehicle-related expense invoices and expense items, as well as taxes levied by the authorities (service, tires, road use sticker, insurance premiums and other invoices, vehicle tax, company car tax).
- There is no obligation to declare vehicle tax or company car tax.
- There is no tangible asset register.
- No depreciation treatment.
- There is no long-term loan, it does not need to be shown or reclassified in the books and balance sheet - significantly increasing the company's creditworthiness.
- The VAT content of the rental fee can be deducted, depending on the use, but at least 50%.
- In case of 50% VAT deduction, there is no road registration obligation.
- No risk in maintenance and tire expenses
- There is no expense/cost risk when selling a vehicle at the end of the term.
- Considerable volume discounts can be availed even for 1 car in relation to the purchase, insurance and maintenance of the vehicle.
- In the case of a pass, the administrative burden is a fraction compared to any other solution.
Company manager benefits:
- You will receive one invoice instead of the leasing fee, insurance, company car tax, vehicle tax coming separately, and then transferring these.
- No more tracking service intervals.
- You don't have to worry about changing winter-summer tires.
- There is no need to deal with a possible accident.
- Experienced help in choosing a car.
- 50% VAT deduction or more than 50% VAT deduction in proportion to road registration and company use.
- The rental fee can be accounted for as an expense.
- Cash flow.
- The car is not used by the company, so it is not a tangible asset, there is no monthly depreciation settlement.
- Enables off-balance sheet financing. In this case, the assets do not appear as long-term liabilities, which improves the balance sheet ratio and thus does not burden the company's credit limit.
- Replacement car, if necessary.
- 24/7 assistance.
- Due to the larger order volume, fleet management companies get cars at a better price for certain brands. This discount can be applied to the customer.
- The VAT on the residual value of the vehicle is paid by the prospective buyer of the used car.
- You can even get a car without a down payment.
What is the difference between a financial lease and a long-term lease /operating lease/?
One of the differences between financial leasing and operational leasing (permanent car rental) is that we hand over all car-related administration to a fleet manager. In return, the fleet manager takes care of everything for us, starting with the selection of the car. This is exactly why we work with the best specialists, who are at the tenant's disposal in everything from the handover to the commissioning.
It is important for us to operate as a fleet management company where we listen to the customer's needs and help them choose the right vehicle accordingly. In many cases, this is not an easy decision. In such cases, an expert who supports you in everything comes in handy! Here is a personal example from the pen of one of our dear customers.
Which model should I choose if I decide on long term car lease?
If you have thought about renting a company car, you must have wondered which one would be the ideal choice. Skoda is a generally accepted company car. It is a good value holder, quite well equipped and we can get it at a good price. With its 7-year warranty, extremely favorable price and reliability, KIA is also popular among company cars. But if you go a lot, then there is the issue of the warranty. By now it is also necessary to consider whether a hybrid or perhaps an electric car is the best solution; there are also many possibilities here.
The most important cost you should pay attention to is the car's value stability / value retention, as well as the cost of fuel. You have to pay attention to when the given type will have a model update. If we buy the car before the inventory is wiped out, we will most likely get a cheaper price, but the immediate release of the new generation will certainly greatly affect the selling price X years from now. That's why you should consult with a professional fleet management company!
Should you choose a Hungarian company or an international fleet manager?
Overall, it can be said that this is an individual decision for everyone. First, multinational fleet management companies generally seem more reliable. However, think about how long it takes to deal with a case in such large companies! Unfortunately, the time cannot be reduced. If we have any type of problem during the long-term car lease /operating lease/, we will contact customer relations first.
Hungarian medium-sized enterprises are faster and more efficient when it comes to administration, simply because of their size. They appreciate the customers because they haven't grown too big yet, but they are big enough to provide the same quality in everything.
Accounting - financial lease or long-term lease /operating lease/?
Financial leases and long-term leases /operating leases/ are subject to different accounting treatment for both the lessee/Lessee and the lessor/Landlord. To clarify the basic financial concepts, it is sufficient if you only understand the accounting treatment of the lessee/tenant. Settlement of the long-term lease is as simple as possible, we look at any solution.
The monthly fees are considered an expense and are accounted for in the profit and loss statement. The company does not own the asset, so it does not appear in the balance sheet under tangible assets or long-term liabilities, so the company does not calculate depreciation on the asset.
In contrast, financial leasing involves the transfer of ownership of the asset to the lessee. A lease is considered a loan (debt financing) and interest payments are expensed in the income statement.
The value of the company is reduced by the amount of the leasing loan as the total remaining capital debt! The current market value of the motor vehicle is included in the balance sheet among assets, and depreciation is accounted for in the income statement. On the other side, the amount of the lease loan, which is the net present value of all future payments, is included in liabilities.
Is a long-term lease /operating lease worth it?
You shouldn't even think about it, if you have a company. If you can deduct VAT and are profitable (because you can account for expenses from it), then long-term car rental is the optimal choice.
Is long-term rental and fleet management a better solution than buying your own?
YES. One of the most important advantages of a long-term lease is that our clients free up capital, which they can spend on developing their main activity. The advantage of fleet management is that our company takes over all administrative tasks from our customers.
Is fleet management a better solution than credit / leasing?
In most cases, fleet management is a better solution compared to other forms of financing, considering all its advantages. It is considered a service, not a financial product, which is why the conditions and modification options are much more flexible. At the same time, in many cases, for accounting reasons, credit / leasing is the optimal solution.
Are the costs eligible?
The amounts of FlottaMan Zrt.'s monthly fees can be 100% accounted for as costs, and the VAT can be reclaimed in proportion to the company's use (this can also reach 100% in several cases).
Why does fleet management mean immediate cost reduction?
Your company will immediately release the costs spent on buying a car. It also frees up all the costs that have been unpredictably spent on operating the fleet up to now, including the dearly paid time of employees.
How does fleet management affect my company's credit rating?
As a result of the cars included in the fleet management, the line of "long-term liabilities" on our customers' balance sheets is freed up, the company is freed from depreciation loss items, and the profit-to-asset ratios increase. This makes the company's credit position more favorable, and loans with more favorable conditions and/or larger amounts can finance its most profitable activities.
Does FlottaMan help you create a new fleet?
Of course, we provide full support. The professional support covers all areas, from the selection of car types through TCO calculations to the writing of the Car Policy governing the use of company cars - all of this is provided to our customers as a free service.
Who will help me if I'm in trouble...even abroad?
FlottaMan Zrt. is available to its customers 24/7, regardless of the country in which the service request arose.