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Budget Renault-owned brand Dacia is looking to outright purchase fleets for its corporate business rather than leasing companies, due to the company policy of not discounting on the thin margins that help it achieve industry-low prices.
Dacia said the contract hire industry's approach of requiring a discount doesn't suit the brand.
"It should be perfect - a solid RV and cheap at the front end. You should take one from the other and divide by 36 with a little extra for maintenance," said Dacia brand manager Andy Heiron.
"But because we don't put 15-20% at the front end, our title of 'most affordable' doesn't sit when you do classic contract hire deals."
"Where we have got through is outright purchase, where someone believes they can achieve a strong RV when they remarket the vehicle," Heiron continued.
"But the real trick is that it's a difficult conversation to have with someone talking about 100 vehicles. We need to find some way of recognising large deals without putting on front-end discount."
Heiron said Dacia's business model of not discounting can't be broken because "once you break it you can never go back", and admitted there would be "some sort of rebate but probably at a very low level".
He revealed that the company couldn't afford to give away free dual controls or metallic paint on the driving school car deals it was looking at.
"Maybe the business model doesn't lend itself to fleet, but that doesn't mean we don't want to sell cars to fleet customers," Heiron continued.
"But because of the business model we are not in a position where we can go out and buy business."
He said the Logan MCV estate has an "obviously" taxi application as well as workhorse implications because it's a small car with a boot bigger than a Volvo V70, while the Sandero city car could appeal to the driving school market, and the Duster SUV has "certain niche applications" as a cheap 4x4.
"There is clearly an appetite for Dacia, but there's some kind of mental block with the price you see being the price you pay," added Dacia product manager Tom Smith.
"People still expect something and it's a fundamental blocking point, and maybe there's a pride thing in paying full price."
He concluded: "We probably did set up our stall in a very retail way in 2013; now we're working a lot closer with the Renault fleet team.
"It hasn't really been the focus, but now we have time to think more clearly about the fleet opportunity."
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