Should your company rent cars or buy them?

Should a company in Vietnam rent cars or buy its own? There is no single answer. It depends on how often your team uses a car, whether you can keep a reliable driver, and whether your admin team has time to manage a fleet. This guide gives you a framework to plug in your own numbers instead of relying on a generic figure.

Hidden costs of owning a company car

• Driver: salary, insurance, leave, overtime and a stand-in when the driver is off.
• Servicing and repairs: scheduled maintenance, tyres, batteries and the days the car sits in the workshop.
• Insurance, inspection and road fees: recurring items someone has to track.
• Parking: at the office, at the driver's home and when visiting clients.
• Admin time: mileage logs, fuel receipts, traffic camera notices and expense paperwork.
• Capital and depreciation: money tied up in a fixed asset. Ask your accountant how it is treated in your books.

What monthly rental solves

With a monthly car with driver for companies, the provider handles the driver and the car's upkeep, while points such as a replacement car are set out in the contract. You get a fixed monthly cost that fits a budget.

• Chauffeur prices include fuel and tolls within the agreed scope.
• You can switch models as needs change.
• A detailed contract is signed by both parties; invoices include 8% VAT.
• The fleet is 2022–2025 models; companies choose petrol or diesel to suit their needs.

If you have your own driver, consider a monthly self-drive rental; fuel, tolls and parking are then paid by you.

Comparison by usage

How to run the numbers

1. Count actual car days over the last three months, by user and purpose.
2. Add up annual ownership costs: depreciation, driver, insurance, inspection, servicing, parking and fuel.
3. Request a monthly quote for the exact need. All quotes currently get 10% off.
4. Weigh the non-cash factors: driver turnover, mid-week breakdowns, admin time.

The hybrid model

Many companies keep one or two owned cars for fixed needs and rent extra for peaks such as partner visits, conferences and year-end parties. When you need a car with driver per trip, send the schedule early, especially at year-end when demand and fuel costs both rise.

FAQ

Should a small company buy a car right away?

If usage is not yet steady, renting lets you test real demand before committing capital.

Do you issue VAT invoices?

Yes, with 8% VAT. Have your accountant confirm the invoice details before signing.

What if a monthly rental car breaks down?

The replacement arrangement is written in the contract; read that section before signing.

Numbers to collect before deciding

Note the monthly distance, number of users, need for a driver and how long the need will last. Compare the full monthly rental cost with purchase, insurance, servicing and parking.

Check whether a replacement car is included when the rental car is in service.

See corporate contract checklist and monthly car with driver.

Quick answers

Can we start with a short contract? Ask about monthly terms.

Is a VAT invoice available? Ask at booking.