More moves towards medium-term rental
12 October 2009
Manchester-based leasing firm Equalease claims to have seen rapidly increasing demand for short-term leases in recent months as companies look for different ways to provide probationary employees with a company car.
"The recession means that employers are even more keen to take a good look at probationary staff over an initial three- or six-month period to ensure they are the right person for the job before committing," said Equalease managing director Paul Ashton. "Until the recent emergence of medium-term leasing, the only option was daily rental, which can prove very expensive if the car is to be retained for a lengthy period such as three or six months."
Equalease's comments echo the finding of leasing company Alphabet, which said in August it was witnessing an increase in medium-term rental as fleets hold-off on a decision in replacing vehicles.
Ashton said the premium for a shorter lease is around 20% above the cost of a longer contract, and the firm can provide more prestige cars such as VW or BMW models.
The firm supplies lease periods of three-12 months from its fleet of vehicles under two years old, with a 1250 miles per month allowance.
FOLLOW BUSINESSCAR ON TWITTER