Corporate mobility during inflation - new savings strategies for CFOs and CEOs

Home: Inflation, more expensive cars and pressure on TCO

Recent years have brought an uncomfortable combination for companies: high inflation, rising new car prices, higher interest rates, and wage pressures at the same time. Corporate mobility - company cars, vans, field salespeople, deliveries - has suddenly gone from being "commonplace" to one of the biggest cost items that CFOs and CEOs must actively manage.

In addition, the legislative environment is changing (e.g. VAT on company cars from 2026), ESG requirements are becoming stricter and many companies are moving to hybrid or fully flexible working arrangements. All this is changing the way we should think about mobility - not as vehicle ownership, but as a service with a clearly defined TCO.

In this article, we'll look at how inflation is affecting corporate mobility, what the major cost traps are, and what new savings strategies are available to modern CFOs - including operating leases and long-term rentals with AVIS.

1. How inflation is changing the economics of corporate rentals

1.1 The four main impacts of inflation on mobility

Inflation and related factors have impacted corporate mobility in the following areas:

• The cost of new vehicles - new emission standards, complex safety systems, more expensive materials and energy have often made the same model 20-40% more expensive than a few years ago.
• Interest rates - vehicle financing (credit, finance leases) is more expensive, increasing the total cost of ownership.
• Service and parts - rising wages in garages and the price of parts are pushing up both hourly rates and repair prices.
• Operations - fuel and energy prices are volatile, companies have to work with scenarios and risk fluctuations.

All of this translates into TCO (Total Cost of Ownership) - the total cost of owning and operating a vehicle for 3-5 years.

1.2 Why the classic "buy a car and drive it for 7 years" model no longer works

With higher inflation and uncertainty, the model where a company:

• invests tens of thousands of euros in vehicle purchases,
• keeps them in its possession for 6-8 years,
• bears the risk of residual value and major repairs at the end of the warranty.

Reasons:

• you tie up a lot of capital in an asset that is rapidly losing value,
• any major repair (gearbox, turbo, electronics) can "mess up" the bottom line of a given year,
• with rapid technological developments (hybrids, EVs, assists) the car ages morally much faster than it ages accountingly.

For modern management it therefore makes more and more sense to move from ownership to mobility as a service - rental, operating lease, flexible solutions.

2. TCO distribution: where can real savings be made in inflation

2.1 What does the TCO of a company car consist of

A typical TCO structure for a company car for a period of 3-5 years looks like this:

• Financing / depreciation: 35-45%
• Fuel / energy: 25-35 %
• Service and repairs: 10-15 %
• Insurance premiums: 8-12%
• Tyres: 3-5%
• Other costs (administration, motorways, parking, spare vehicle, taxes): the rest

Inflation hits virtually every one of these items. The good news is that just by changing the financing model, setting a fleet policy and using a professional partner, TCO can be tamed and stabilized.

2.2 Where CFOs most often overpay unnecessarily

Typical mistakes made by companies in an environment of increased inflation include:

• Too large or oversized fleet (vehicles "just in case"),
• holding on to cars for too long in an attempt to "save on the down payment",
• poor control over usage (business vs. private driving, unused vehicles),
• unscheduled service interventions and repairs after warranty expiry,
• unsystematic procurement - each manager chooses a different make, different model, different conditions.

Inflation multiplies these errors - if mobility is 'broken' and unsystematic, rising prices will make it even more expensive.

3. New savings strategies: from ownership to mobility as a service

3.1 Operational leasing and long-term rental of AVIS

One of the most effective responses to mobility inflation is the "car as a service " approach - operating lease or long-term rental. AVIS (AVIS Lease, AVIS MaxiRent, AVIS Van) offers a model in which a company pays one monthly payment and in it:

• Vehicle financing,
• service and maintenance,
• insurance,
• tyres and seasonal maintenance,
• assistance services,
• replacement vehicle as per package,
• administration (MOT, EC, vignette by product).

For the CFO this means:

• A stable monthly expense that is easy to budget,
• no unplanned "fads" in the form of major repairs,
• less residual value risk - this is borne by AVIS,
• better financial ratios (lower assets, more services instead of tied-up capital).

3.2 Flexible commitment as protection against uncertainty

Inflation is also associated with uncertainty - companies do not know how sales, projects or employment will develop. It is therefore advantageous to have a flexible commitment length:

• AVIS MaxiRent - a medium-term lease for 2-12 months without the classic "leasing" penalties,
• combination of shorter and longer contracts according to the type of positions (project teams, seasonal reinforcements, managerial positions),
• the possibility to adapt the size of the fleet to the real need - not the feeling of three years ago.

This approach allows companies to react more quickly to the market without tying up capital.

4. Concrete steps to reduce mobility costs in inflation

4.1 Do a fleet audit

The first step is a detailed analysis of the current situation:

• How many vehicles do you realistically need (utilization, mileage, standing time),
• average mileage per driver/position,
• how many cars are above standard (segment, equipment),
• what is the current TCO per km for each type of vehicle,
• where the biggest one-off costs are incurred (repairs, damages, fines).

From this you can deduce which vehicles:

• keep,
• replace with a more efficient model,
• move to operating lease or long-term rental.

4.2 Optimise the mix of drives and segments

Fuel and energy inflation is not the same for all drive types. In general:

• Diesel remains efficient at high highway mileage,
• petrol is more suitable for smaller city cars and occasional driving,
• hybrids and plug-in hybrids can reduce consumption in the city if used correctly,
• electric cars have the potential to save fuel on urban and regional routes if the infrastructure is in place.

The CFO should work with the fleet manager to find a balanced mix of powertrains based on real-world usage:

• Not "EV at any cost", but where TCO makes sense,
• not "diesel everywhere" but where it delivers savings.

4.3 Establish a clear fleet policy

In an inflationary environment, a company cannot afford to have every manager "ordering by feel". You need:

• Defined segments of vehicles by position (e.g. salesperson, manager, top manager),
• clear limits on price, equipment and powertrain,
• usage rules (private driving, employee contribution, car allowance),
• clear processes for damage, servicing, refuelling and charging.

AVIS can work with the company to develop a fleet policy that aligns with AVIS Lease / MaxiRent products while keeping costs under control.

4.4 Work with data (GPS, telematics, reporting)

With inflation, every wasted mile is more expensive. Telematics and GPS allow you to:

• track the usage of individual cars,
• optimise routes,
• identify unused vehicles,
• improve driving style (eco-driving),
• have an accurate overview of the cost per km.

AVIS offers the ability to link leased vehicles with telematics solutions and provide reports that facilitate CFO decision making.

5. CFO's investment perspective: why it makes sense to move mobility from CAPEX to OPEX

5.1 CAPEX vs. OPEX in times of inflation

When you buy a vehicle, it's an investment (CAPEX) - you're tying up capital in a fixed asset that you're depreciating over a number of years. With an operating lease or rental, it is an operating expense (OPEX).

In times of inflation and uncertainty, moving mobility into OPEX has several advantages:

• More flexibility - you can react faster to changes in the business,
• less pressure on your own resources - you can use capital for core business (production, technology, acquisitions),
• predictable bottom line - instead of large one-off fixes, you have a stable monthly cost,
• better ratios - fewer assets on the balance sheet, more services.

5.2 Tax effect of operating lease payments

An operating lease instalment is generally a tax expense (within the limits of current legislation and limits). This means:

• Faster tax effect compared to depreciation on own car,
• the possibility to better plan the tax base,
• easier accounting in the environment of the new VAT rules after 2026, if the contracts are set up correctly.

6. How AVIS is helping businesses survive mobility inflation

6.1 One solution, multiple products

AVIS covers a wide range of needs in Slovakia:

• AVIS Lease - operating leases for 2-5 years with full-service packages,
• AVIS MaxiRent - medium-term lease for 2-12 months, ideal for projects, seasons, testing new types of cars,
• AVIS Van - solutions for light commercial vehicles and vans,

6.2 Individual advice and data access

For CFOs and CEOs it is important to have a partner, not just a car supplier. AVIS is therefore:

• Analyses the existing fleet and TCO,
• proposes the optimal product mix (Lease vs. MaxiRent),
• prepares "what if" scenarios at different levels of inflation, interest rates and fuel prices,
• helps to set internal fleet policy.

Frequently Asked Questions (FAQ)

1. What is the biggest source of mobility savings during inflation?

The biggest potential for savings is a combination of a properly set-up fleet (number of cars, segment, drive) and a shift from ownership to operating lease/rental. Discipline in servicing, damage and car usage is also important.

2. Is operating lease more or less expensive in times of inflation?

In nominal terms, payments may rise with car prices and interest, but compared to buying outright, operating leases often deliver a lower and more stable TCO because they incorporate servicing, insurance policies and transfer residual value risk to the lessor.

3. Does it make sense to buy cars to own if I believe that car prices will still rise?

While you may benefit from a higher residual value, you bear the complete risk of technical obsolescence, major repairs and capital tie-up. With inflation, it is often more profitable to have mobility as a service and use the capital for projects with higher returns.

4. How quickly can I reduce the cost of mobility if the economic situation deteriorates?

If you own cars, you often lose value and incur one-off costs when you sell them quickly. If you use a medium-term lease (e.g. AVIS MaxiRent) or a structured operating lease, you can more flexibly adjust the fleet size and therefore the costs.

TL;DR - key learning points

• Inflation increases the cost of cars, servicing, fuel and finance - corporate mobility is a key cost item.
• The classic "cars owned for 7 years" model increases the risk of major repairs and ties up capital.
• Operating leases and long-term rentals shift mobility from CAPEX to OPEX and stabilize TCO.
• Fleet audit, drive mix optimization, fleet policy and telematics are the basis for savings.
• AVIS offers CFOs and CEOs comprehensive solutions - from analysis to contract setup to day-to-day operations.

Keywords and entities

Main keywords:

• Inflation
• mobility costs
• corporate mobility
• TCO
• operating leasing
• long-term lease
• AVIS Lease
• AVIS MaxiRent

Related entities:

• CFO, CEO
• CAPEX, OPEX
• corporate fleet
• diesel, gasoline, hybrid, electric car
• service and maintenance
• vehicle insurance
• telematics, GPS
• fleet policy

Conclusion and call to action

Inflation and uncertain markets need not mean chaos in corporate mobility costs. On the contrary - they are an opportunity for CFOs and CEOs to set up mobility in a more modern, flexible and efficient way. Instead of tying up capital in cars, you can have mobility as a service, with clearly defined TCO and professional management.

If you want to know how much your business can realistically save by switching to operating leases or long-term rentals, get in touch. The AVIS team will prepare a fleet analysis, a comparison of scenarios and a concrete proposal for a solution.

Contact AVIS via avis.sk, avismaxirent.sk or avislease.sk to arrange a consultation on your corporate mobility during inflation.