Short term leasing is emerging as a credible “third way” as a method of company car acquisition due to the challenging economic climate.
Manchester-based Equalease, one of just a handful of leasing companies that has developed fixed term three to twelve month car leasing as a specialist product, says that demand has significantly increased in recent months.
Managing director Paul Ashton, who has over 20 years experience within the car leasing sector said that medium term leasing fitted in well with current corporate thinking.
He explained: “It has been well documented in recent months that many businesses, perhaps as many as a quarter, remain reticent about either signing traditional long term lease agreements of three years and 60,000 miles, or putting their capital into buying a new car.
“For many of these companies, this wish to move away from traditional acquisition methods is not just a crisis in confidence caused by the recession but also about a desire to remain highly flexible as the economy begins its slow recovery.
“They believe that avoiding long term commitment to costs such as company cars will mean that they can respond best to changing market conditions in the future.”
Ashton said that awareness about medium term leasing remained low in the company car sector and that few leasing companies offered it but that, for many businesses, it was an attractive choice.
He said: “Even some well-informed fleet managers don’t know about medium term leasing. They believe that the choices facing them are polar opposites – daily rental at one extreme or a three to four year lease at the other.
“However, where there is some level of awareness, medium term leasing is being seen as a credible third way. It is reasonably priced, being much closer to a long term lease rate than daily rental, offers a very high level of flexibility and is easily put in place.
“We find that customers tend to try a three month lease initially and then renew in line with their needs at every three month interval following. It allows them to bring their fleet requirement and provision into close harmony.”
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 1,250 miles per month, (equivalent to an annualised mileage of 15,000) 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.
About Equalease
Founded in 2003, Equalease is an innovative, independent leasing company that has developed a specialism in medium term company car leasing to businesses of all sizes. Offering vehicles from major manufacturers such as Audi, BMW, Lexus, Mercedes, MINI and Volkswagen, leases include all maintenance and breakdown recovery, road fund licence with a standard annual mileage allowance of 15,000 miles a year or 1,250 miles a month. Further details can be found at www.equalease.co.uk.
Please visit us at www.equalease.co.uk for more information and to place an order on a vehicle
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