Lifestyle leasing now a possibility
“Lifestyle leasing” – where an employee potentially changes their company car every three months – is becoming a reality thanks to the development of medium term vehicle leasing.
Manchester-based Equalease, one of just a handful of leasing companies that has developed three to twelve month car leases as a specialist product, says that it already has a handful of customers who change their car every quarter.
Managing director Paul Ashton, explained: “We do have some customers, usually from SMEs where the owner of a company can make their own company car decisions on the spot, who now undertake lifestyle leasing.
“Sometimes these decisions are practical and based on car need. During a three month period when the customer is not planning to use their car a great deal, they might lease a hatchback. Then, if they are going to spend a lot of time on the road, they would lease a prestige estate for the next few months.
“However, sometimes the decisions made are based entirely on preference. Typically, they might have a 4×4 for the winter months, a prestige estate car for the spring and something a little more sporty for the summer. This type of preference-based leasing is happening even during the recession.”
Cars provided on medium term leasing are taken by the customer for a minimum of three months and a maximum of a year. The option provides a third choice beyond daily rental and standard three of four year car leases.
Ashton said: “Our medium term lease rates are much, much lower than daily rental costs and typically around only 20% more than a three year lease.
“This premium seems to be one that many customers feel is worth paying either because they want to change their car regularly or they believe that retaining a high degree of flexibility over fleet operations is important.”
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.
Current prices include a Volkswagen Golf 1.9 TDI Match 5dr Manual for £280 per month based on a six month lease at 1,250 miles per month.
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