Future leasing schemes set to benefit small businesses
I HAD a chat today with the characterful commercial boss of Leasedrive Velo, one of the UK’s largest independent car leasing and fleet management companies.
The reason for the call from Roddy Graham was to tell me about the the company’s latest white paper – a ‘fleet management vision’.
While it’s been designed for large companies with big company car fleets, there’s much in it that’s relevant for smaller businesses.
“We reckon that by 2015 we’ll be seeing the ultimate contract hire scheme – probably negotiated with a single manufacturer by the leasing provider – and it will be a lifestyle scheme,” said Roddy. “Under this scheme, a company car driver would have the opportunity to swap their lease car for another to meet specific ad hoc requirements.”
Lifestyle leasing
This sort of thing has always been a holy grail of the leasing companies – and should be possible. When I was doing consultancy work for HSBC Vehicle Finance in 2000 it was a regular topic. You know the sort of thing, a hatchback for normal business use, and maybe an MPV people carrier for the summer to take the family on holiday. It ought to be possible now given the advances in software and logistics.
While such lifestyles schemes will be welcomed by company car drivers, I suspect another of Roddy’s predictions has more relevance for small businesses and company directors.
More flexible contracts
“We may see the advent of more flexible contracts starting at 18 months and offering an opt-out option on a rising monthly basis up to 48 months,” said Roddy.
I think this has real value for small businesses. It provides extra flexibility that allows, for example, a business owner to flex the car they drive depending on the financial performance of their company. Or, engage staff on a project basis with a car and alter the contract length if the project terms are extended. More flexibility means more opportunity. Let’s hope that Mr Graham and his team – and other leasing companies – come up with the goods.
Car clubs
And finally, another issue that I think can help businesses too: car clubs. This is what Roddy had to say: “Perhaps as the person responsible for making the first commercial car club in the UK a reality I am biased, but we remain convinced that car clubs have an important role to play in our future transport infrastructure, especially in towns and cities.”
I couldn’t agree more.
