Should You Buy A Tempo Traveller Or Rent One?

It is a question that plagues many a growing organisation. Should they add tangible assets like bigger office space, a fleet of company cars or buses, and more outstation workspaces? Or should they ride over the economic ups and downs and stick with the basics, thus ensuring a stable bottomline?

Too often, several companies on the rise are bogged down by the wrong ideas of expansion. In the current climate, it is imperative to save rather than splurge, and adding assets that are costly to maintain might be an avoidable drain on resources. On the other hand, your company might be trying to raise capital via angel investors or venture capitalism. To this end, you wish to present a picture of stability and growth, so you feel that you must add to the company assets and present a robust business profile.

And yet, some aspects of business growth related to company assets are nothing but fiscal common sense. Take for instance, whether your company should buy a tempo traveller or rent one when needed. On the one hand, you can have a vehicle registered and owned by the company – a big plus! But there are costs associated with it, and in some cases, you are better off renting the bus.

Buying a tempo traveller…

It makes sense to purchase a tempo traveller in Delhi, under certain circumstances. It adds an asset in your company’s name, and the company can claim expenses against fuel and normal usage. However, do bear in mind that:

• The vehicle purchase makes financial sense only if it is to be used every day, or frequently. A case in point is if your company provides pick-up and drop services for employees. Some companies offer mandatory drop services for women employees working in Delhi, and an owned vehicle is a big help in these cases.
• You and your employees get the freedom to move about in the city and even outside it, whenever you wish. Since the bus belongs to the company, it can be put to use at any time whenever needed.
• If the vehicle is going to be infrequently used, it is going to cost you more money to maintain it. Stationery vehicles must be started up every day to keep the battery and engine in fine fettle, and it must be serviced regularly especially during the monsoon and winter season.
• Your company will also lose money every month in paying a driver for the tempo traveller that is seldom used. This is additional and unnecessary expense.
• v/s renting a tempo traveller…

On the other hand, your company may not require a tempo traveller on standby. Many of your employees may work flexi hours or from remote locations, so there is no question of a pick up and drop facility. Or they may hire private cabs to reach office or home, and charge the tab to the company. Renting a tempo traveller in Delhi makes more sense in this case because:

• You only pay for renting the tempo traveller when needed.
• There are no expenses attached to maintaining the car. When you hire a tempo traveller in Delhi or another city, you only pay the hiring charges as stipulated by the operator. You do not pay for the vehicle upkeep, nor the driver salary.
• Renting the vehicle is not just economically smart, but environmentally conscious too. Delhi is currently battling alarmingly high levels of air pollution, and renting a bus or tempo traveller for short distances releases less emissions in the atmosphere than a vehicle that is used frequently. Your company reduces its carbon footprint considerably by renting rather than purchasing and using a bus or tempo traveller.
• Renting the tempo traveller from a leading company ensures timely pick up and drop, safe driving and no hassles in payment. You can choose the type of vehicle you want and rent it after giving your ride details and choosing the best price (as per the vehicles in inventory).

We hope the above points bring some clarity on whether buying or renting a tempo traveller is better for your company.

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