Economic uncertainty strengthens short term appeal

The number of fleets using short term leasing to source their company cars is increasing due to continuing economic uncertainty, according to Equalease.

Managing director Paul Ashton says that the number of fleets who are renewing three and six month leases on a rolling basis because they are concerned about lack of growth in the economy is increasing.

He said: “Many businesses remain very wary about what the short-medium term future may hold and especially the threat of a double dip recession. They do not want to enter into a three or four-year lease or to buy a new vehicle at a point in time whilst they are unsure about the economy.

“As a result, we are seeing an increasing number of fleets effectively using short term leasing as a method of ongoing company car provision, renewing their lease every three or six months while they monitor the ongoing economic situation. It is a noticeable trend.”

Ashton explained that the additional 20-25% monthly cost for a short term lease was a premium that fleets were willing to pay to retain flexibility.

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