Arval has launched its mid-term rental product that allows companies to rent a van or car between one and 24 months.

The leasing company describes the product as sitting between contract hire and rental.

Benoit Dilly, Arval UK managing director, believes the product fills a gap in the market and that it will deliver further growth for the firm, which has now passed 100,000 vehicles in its fleet for the first time.

Arval is offering mid-term rental to its existing customers first and developed it after receiving customer feedback that certain work situations would benefit from not having to commit to a three-year agreement on a car.

The mid-term rental means employees can be given a car during their three-month probation and not be left with having to face early termination fees if that employee isn’t suitable.

Dilly also said the product can be used for those drivers that are waiting for a car that has a long build/delivery time. It means a driver can rent something in the mid-term while waiting for the car they actually want, which they would take a longer contract on.

Arval is currently discussing a partnership with some rental companies to deliver vehicles if mid-term takes off. However, it will be using its own fleet of vehicles to satisfy current mid-term rental demands.

Dilly said: “Mid-term rental will be significant for Arval. We know we will easily break even on this product and we will meet a customer expectation with it.”