Mini-lease: Surprisingly Cost-Effective
Flexibility and commitment are old adversaries; commitment equals structure, predictability, dependability and lower cost. Flexibility, well it means you can change your mind regularly, don’t have to be loyal and you’ll have more experiences … but at a higher cost.
Think about cars, some run them for years and others replace them regularly. For those that keep them (at least until a point in time) they will spend less money on their motoring than those that chop and change.
When it comes to leasing, short term hire is at the flexible end of the continuum and contract hire represents commitment. In cost terms, short term hire is much more expensive over time than contract hire.
There is a middle ground, sometimes referred to as mid-term leasing – we call our service Mini-lease – where the flexibility and commitment balance each other.
If you only need a vehicle for a few months, this could be a perfect solution; it’s ideal for businesses that use temporary staff or have people coming in and out of the workforce regularly. If you require a business vehicle for more than 28 days, the advantageous terms of Mini-lease make this an excellent choice for your company without forcing you to commit to a three or four-year lease deal.
When you select Mini-lease, you have several choices of length of rental period and mileage entitlement. This gives you plenty of options when you are looking for a short-term leasing solution, allowing you to match the period of hire to your vehicle requirements.
With all the features and benefits of Mini-lease you’re probably thinking that it will cost more than contract hire … but you might be surprised. If you choose carefully, do you know that you could end up with a new vehicle that has a running cost, in pence per mile terms, that is lower than it would be on a full-term contract hire agreement?
Taking an example of a KIA Stonic Estate 1.0T GDI 2 5dr
|Total Rental Costs (ex VAT)||£1,898.35||£6,992.77|
|Mileage Allowance||12,000 miles||20,000 miles|
|Pence Per Mile||16ppm||35ppm|
|Contract Commitment||6 Months||24 Months|
Source for contract hire example: www.kia.com
This shows that on a cost per mile basis Mini-lease would actually be more cost effective over its term than an equivalent contract hire agreement, assuming that the mileage allowance was fully utilised.
The contract hire example above doesn’t include a maintenance allowance so rental costs would be higher if that was also factored into the equation.
Flexibility and value for money at the same time, it’s not too good to be true but it is the best of both worlds.
If a Mini-lease would suit your business and you’d like sign up, please get in touch on 0800 776 5940. You can always visit www.minilease.online to looks at the special offers and compare and contract vehicles to see what would suit your organisation the most.