Yep, I’m biased. But Short Term Car Leasing works well for a lot of companies and individuals, so why wouldn’t I shout out about it.
So what is Short Term Car Leasing?
Difficult one, as different companies wrap it up in different ways. Some use Daily Rental vehicles over a longer period of time and commit you to take a vehicle for so many days to guarantee a lower rate.
Some are literally just contract hire offers, taken over 6 or even 12 months and anything in-between. Fixed contracts with no way of extending or reducing the time.
Car Subscriptions is the new buzz word in the industry with all types of people jumping on the back of the new craze which wraps everything up into one monthly rental.
How does Short Term Car Leasing work?
Depends on the deal at the time, so let me break this up and give you some jargon to go with it.
Flexi-rent. This is usually a Daily Rental contract taken over a longer period of time to guarantee a lower rate with a little commitment from yourself. A few of the larger rental firms offer a solution, but they are just playing catchup.
A firm could have 500 various vehicles registered, taxed and ready to go and these are able to go out on terms of 28 days or more and be returned at any point. No ties-ins just pure flexibility.
Short Term Fixed Contracts. These are generally on manufacturer buybacks. In simple terms, the manufacturer wants to increase their registrations. They will offer vehicles to firms to put out on Daily Rental or fixed contracts for a set number of months. At the end of the term the manufacturer will then purchase the vehicles back at an agreed price and then allow the vehicles to go into the dealer network as an “approved” vehicle.
Car Subscriptions. A newbie in the market place but a simple solution for daily rental firms or leasing companies to rent out their unused vehicles to individuals, packaging them up with maintenance, rental, insurance and roadside assistance. Its great for the consumer as they can take a car for a set number of days or months and upgrade or downgrade with ease.
Even the manufacturers are offering the schemes with Land Rover and Volvo offering similar monthly packages wrapped up with insurance. Its like Netflix for cars.
5 great reasons to use Short Term Car Leasing
There are more than 5 reasons why Short Term Car Leasing may work for you or your business, and welcome you to add to this in the comments below. But here are the 5 reasons that I have seen, that makes STCL work.
- New start employees on probation periods. You really don’t want to get a member of staff a 2 or 3 year car within the first 6 months of their probation period. So by running these short term cars, your not committing to a disaster, should that person not work out.
- Overseas visitors and Expats. Depending on the firm that you go through, short term cars are ideal for secondments from overseas or expats coming over here for a set period of time.
- New Start Businesses. It has been known for underwriters to look at new start companies, companies with overseas parent companies and negative shareholder funds. This is because the time they need to have the car is less than a traditional lease. If a company fails after 6 months, its ok, the car will go back to the manufacturer soon.
- Seasonal Work. Not every business operates on a 9–5, January to December. For instance, we have a Christmas tree supplier. Guess when his busiest time is and do you think he needs a van all year around? No, thats why he comes to me for a 6 month van. Business trends to change and the beauty of short term, is that it can fit around you and your business.
- Boredom. My favourite excuse for a Short Term Car Lease. I get bored with the cars I drive and being able to swap every 6 or 12 months, this product was made with people like me in mind. New car smells all year around. It also suits people who want something sporty in the summer and a SUV or 4x4 in the winter.
Is Short Term Car Leasing for you?
Short Term Car Leasing isn’t for everyone, if your the sort of person who prangs alloys on a regular basis or drives too closely on the motorway. Suppliers like their cars back in as close to showroom condition as possible and there isn’t a Fair Wear and Tear guide on such a short period of time.
Its really important that if you do damage your vehicle, you get this repaired by a reputable firm or at best, a manufacturer approved bodyshop. As, if the repair work is sub standard you will get charged to rectify the work done.
Another top tip, is don’t lie about your mileage. Its very easy to take a 1500 miles per month contract due to the price but then do 2,000 miles per month in the vehicle. Excess mileage charges are much higher in a Short Term Car Lease.
Don’t expect to get Long Term Contract Hire prices on short term lengths, it just doesn’t happen. Cars lose money a lot quicker at the front end of its life, therefore as you aren’t taking over the ‘golden’ period of time, the cost will be higher.
I love to hear your comments and experiences of Short Term Car Leasing and I will answer any questions you have as truthfully as I can.