RENTAL companies are launching a string of flexible products to cater for employers who do not wish to commit to long-term vehicle supply contracts.

With the economy facing an uncertain future, some employers are wary of committing to two, three or four-year contracts and are looking for alternative ways of keeping their employees on the move – and rental companies have been swift to react.

A number of firms are offering flexible rental products, allowing businesses to take on short-term cars for just a few months without risking early termination penalties, but without the extra cost of paying daily rental prices to hire vehicles.

The latest company to offer the flexible rental service is Enterprise rent-a-car, which now offers its own alternative to buying and long-term leasing through Month or More.

It aims to offer the benefits of short-term hire, such as maintenance and roadside assistance included in the rental price, but with the flexibility to end the contract if demand for vehicles is reduced. Furthermore, flexible rental rates can be up to 30% lower than normal daily rental costs.

A spokesman for the firm said: 'There are several instances where long-term rental provides a useful alternative to other procurement methods. These can range from the provision of vehicles to help a company meet seasonal or contractual obligations to supporting a self-owned car pool with a 'virtual fleet' of vehicles that can be supplied as and when required.

'Another scenario where long-term rental is becoming a viable alternative concerns the appointment of new employees. Most new starters will serve a probationary period, normally covering a few months, as they settle into their jobs. Occasionally, however, things do not turn out as planned and the employee leaves the company.

'If this does happen, and the employee has been provided with a vehicle under a contract hire agreement, then the previous employer will be left with a hefty early termination charge. Considering a different vehicle procurement method at this time could be more economical.'

The rental firm is providing new rental cars direct from its short-term rental fleet and they will remain with the customer until the contract ends, or the vehicle is due to be de-fleeted by Enterprise.

Other rental companies planning the launch of flexible rental products this year include Sixt rent a car, which is relaunching its service over the next six months.