Equalease report short-term lease on increase due to slow economy
Equalease, the innovative, independent leasing company whom specialise in medium term lease solutions, report that due to continuing economic uncertainty short-term lease is on the increase for company fleets.
Managing director Paul Ashton said: “Many businesses remain very wary about what the short-medium term future may hold and especially the threat of a double dip recession. They do not want to enter into a three or four year lease or to buy a new vehicle at a point in time whilst they are unsure about the economy.
“As a result, we are seeing an increasing number of fleets effectively using short term leasing as a method of ongoing company car provision, renewing their lease every three or six months while they monitor the ongoing economic situation. It is a noticeable trend.”
Ashton explained that the additional 20-25% monthly cost for a short term lease was a premium that fleets were willing to pay to retain flexibility.
He said: “The key factor behind this is the desire to avoid any long term spending commitment. Also to avoid a situation where vehicles on long term leases may need to be early terminated, which can be extremely expensive.
We may be out of the recession but many businesses are finding that life is difficult on a week to week, month to month basis. Managers are finding few reasons to feel confident and so the combination of flexibility and pricing offered by short term leasing is appealing.”
Equalease specialise in leases of up to 12 months with all cars provided less than two years old and with a standard annual allowance of 1,250 miles a month and include all maintenance, breakdown recovery and road fund licence. Equalease can deliver most vehicles anywhere in the country from order in under a week and their current lease rates can be found on the Equalease web site.
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