SMEs leading way in short-term leasing
19 April 2010
Small and medium-sized companies are leading the way in the adoption of short term leasing.
According to Equalease, the average fleet size of customers taking up its three to twelve month car leases is between 25-50 vehicles.
Managing director Paul Ashton explained that short term leasing seemed to be a perfect fit for SMEs during the recession, which were finding traditional company car acquisition routes currently unattractive.
He said: "For many of our customers, the desire to move away from traditional company car acquisition methods such as long term leasing is not just a crisis in confidence caused by the challenging economic climate but also reflects a desire to remain highly flexible as the economy begins its slow recovery.
"They believe that avoiding long term commitment to costs will mean that they can respond best to changing market conditions in an uncertain future."
Ashton added that smaller companies were also more easily able to make rapid changes in company car acquisition policies without having to undergo the wide ranging reviews that would be required in larger organisations.
Demand from larger fleets for short term leasing is slowly increasing, he said.
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