Fears of an economic slowdown following the UK’s decision to leave the European Union could lead to a boost in businesses renting vehicles this year.

That’s according to Meridian Vehicle Solutions, which said the possibility of a downturn could make businesses choose more flexible vehicle arrangements.

According to Phil Jerome, managing director of the business, many companies are adopting a wait-and-see approach to Brexit and are holding off on entering into long-term vehicle arrangements, as the cost of leasing vehicles may become in a downturn.

Jerome said the cost of medium-term rental of vehicles for periods of between one and six months is “only marginally higher than a three-year/60,000-mile contract”, making it financially viable to add vehicles onto their fleet.

He added that in recent years, vehicle offerings have expanded beyond either a three-year lease or short-term rental, which is helping businesses out when they are faced with unpredictable situations.

“We have gradually shifted into a more sophisticated model where a wider range of suppliers have created a wider range of provision, offering different lengths of hires and leases across a wider range of vehicles. All of this can only be good for fleets,” he said.