Manchester-based Equalease says that demand for fixed term, three to twelve month car leasing has significantly increased in recent months.

Many businesses 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, claimed Paul Ashton, managing director of Equalease.

“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,” explained Ashton.

“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.

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 five-door manual for £280 per month based on a six-month lease of 1,250 miles per month.