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Uplift in mid-term daily rental as 'permanent' company cars

Date: 26 November 2019

Twenty-five per cent of medium term rental is now being used for permanent company car provision, according to Meridian Vehicle Solutions.

Quoting figures from its own fleet, the company says that one in four orders for new vehicles now being received are to replace an existing car on rental.

Phil Jerome, managing director, explained: "All of our cars are supplied new from a franchise dealer on contracts ranging from six to 12 months so, in a sense, what we do is closer to short term leasing than daily rental.

"Some customers simply like the idea of having a new car very regularly and perhaps use the opportunity to try out a range of vehicles or take different types of car that suit their needs over the coming months.

"For others, the reasoning may be more practical. They may not know how long they will need a car or perhaps don't want to make the financial commitment of a long term lease for specific financial reasons.

"We even have some customers using their medium-term rental car on a pool basis. As long as they need some flexible provision over the next few months, it is a good option."

Jerome added that understanding of medium term rental as a product was increasing as well as market awareness of Meridian itself.

"There are now a group of fleet managers who automatically think of us in a number of scenarios such as when they have a new employee start on a six-month probation," he said. "Our feeling is that we are becoming an established part of the fleet acquisition portfolio, usefully bridging a gap between daily rental and longer-term leases."