Fleets turn to short term leasing as an alternative to pool cars

Short term leasing is being adopted by some fleets as a modern alternative to traditional fleet pool cars, according to Equalease.

The company, one of just a handful of that has developed leases of up to 12 months as a specialist product, says that the idea of leasing a car to fit short term demand is more cost effective than having a asset that often sits idle.

Managing director Paul Ashton explained: “Pool cars have been falling out of favour for many years and certainly don’t fit in with post-recessionary fleet thinking. Having a valuable asset that depreciates and incurs other major costs but is used only erratically is difficult to justify in the current climate.

“We have been dealing with several fleet operators that have de-fleeted their pool cars during the recession but now need a means of meeting short term demand for vehicles. Some of this is done through daily rental, of course but where a car is needed longer term, for three months or more, short term leasing provides a much more cost effective solution.

“Really, short term leasing is being used as a 21st century pool car.”

Ashton said that the pool car scenario was just one of a number where corporate fleets are starting to recognise the advantages of short term leasing.

He said: “Because short term leasing is a relatively new product, fleets are still recognising new applications for it on a month by month basis. Examples include seasonal vehicle provision, cars for new staff on probation, cover while drivers wait for new vehicles to be delivered and lifestyle leasing.

“We even have some customers who short term lease on a rolling basis as their main acquisition method, who are willing to pay a small premium in order to avoid having a long term leasing commitment.”