Medium term leasing will hit prestige car rental thanks to cost savings
Medium term leasing will make headway against prestige car rental thanks to the cost savings available, says Equalease.
The company is one of just a handful that has developed 3-12 month car leases as a specialist product, and says that it substantially undercuts daily rental rates for cars such as BMW 3 Series and Mercedes C Class.
Managing director Paul Ashton, explained: “Daily rental has one significant advantage over medium term leasing, and that is the ability to hand the car back at any moment. It provides absolute flexibility.
“However, if you know that you are going to need a car for three months or longer, then medium term leasing comes into its own and, in this part of the market, we are winning business from daily rental companies.”
Ashton said that prestige cars tended to be needed for around three months by fleets for a variety of purposes – such as for new managers during their probationary periods or while waiting for a new car to be delivered.
“Until the development of medium term leasing, the only option open to fleets wanting a prestige car in these circumstances was to rent – and the rates for vehicles of this type have been prohibitive,” he said.
“We can provide a BMW 3 Series, for example, for £519 a month on a 1,500 mile monthly mileage allowance for three months. For this cost, a daily rental company might struggle to provide a Group A car.”
Vehicles provided by Equalease on 3-12 month leases are taken from its fleet of cars, all of which are less than two years old. Leases include a standard annual mileage allowance of 15,000 miles a year or 1,250 miles a month and include all maintenance, breakdown recovery and road fund licence.
Ashton said: “Really, our main obstacle when competing against daily rental is awareness. Medium term leasing is still a relatively new product and many fleet managers don’t know of its existence.”
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