SHORT term leasing is exactly what it says on the tin – well, almost.
What is short term leasing?
- Vehicle hire terms range from 1-12 months
- Cars and vans from many sectors are hired from a pool of available vehicles
- 28 day+ hires are usually payable monthly in advance with an additional initial deposit that is equivalent to one month’s hire – this is refundable at the end of the term if your vehicle is not damaged
- Special offer short term leasing payment profiles can vary depending on contract term, with initial payments typically representing the equivalent of 3 payments in advance
Short term leasing offers customers the opportunity to lease a car on a shorter term basis than a traditional contract hire period of two to four-years.
The main difference is that short term lease cars are not sourced as per client’s exact requirements like they would be if they were taking out a contract hire agreement.
Short term leasing is simply a long term rental contract; cars are selected from categories, a mileage band is chosen and prices are much keener than renting on a daily or weekly basis.
Finding a short term leasing specialist
Short term leasing is not too commonplace – many high street and independent rental companies specialise in daily and weekly “all-inclusive” hires.
For this reason, it can be difficult to get the sort of discounts from these suppliers that make short term leasing cost-effective for your business.
Paul Brown is Managing Director of Cars on Demand, which are specialists in short term contracts and offer competitive monthly rentals on a full range of vehicles, from small cars to Supercars (that are also available for weekend hire).
Paul has this advice on the benefits of short term leasing: “We specialise in providing a wide range of affordable short-term lease cars to clients across the UK from our nationwide locations.
“Although we do supply vehicles to individual clients, we specialise mainly in B2B short term leasing.
“Our product is fantastic for new start companies or businesses that haven’t necessarily been trading as long as a leasing company would insist to qualify for a two- or three-year contract hire deal.
“Short term leasing is also a great option for any SME that hires temporary workers, or has new staff on trial and self-employed people.
What are the benefits of short term leasing?
- Vehicles are taxed and maintained
- Vehicles can be delivered Nationwide (cost may vary by location)
- Arranging a short term lease is much speedier than organising a lease – rentals can be dispatched in as little as 24 hours
Short term leasing has the same VAT and TAX advantages as contract hire
“Our vehicles all have a good level of standard equipment – standard category cars are usually SE or equivalent – and we also have a plus category, which is where higher grade or sportier same-sector cars are offered for anyone wishing to upgrade.”
As Paul says, short term leasing is a really useful product for many reasons, and allows SMEs the ability to be flexible with their vehicle requirements.
It’s particularly useful for new starters on a probationary period – before your business commit to a full 36 or 48 month contract hire agreement, you can put the staffer in a short term lease car until they have successfully completed their probationary period. And only then commit to the contract hire agreement.
If you haven’t considered it before – take a look. It could save you money in the long run while providing flexible transport in the short term.