How to deal with temporary or variable vehicle requirements without being tied to a lease?
For many companies, leasing a company car on behalf of an employee over a three or even four year period is the perfect response to the job need involved. However, there are many occasions when a three or four year lease agreement is far too long to meet the company’s more immediate mobility requirements.
A typical occasion could be when a new employee joins the company on a probationary period for three or six months. Although he or she may qualify to receive a company car, signing a three year contract in these circumstances could lead to expensive exit costs if the employee does not match up to expectations.
Another situation might be where an employee is waiting for delivery of a new vehicle, only to learn that the delivery period, for various reasons, has been extended by several months, while their existing car has had to be returned to the supplier as it has reached the end of its contract.
Some companies may be reluctant to commit to three or four year leases for cash-flow reasons or because they are still scrutinising all corporate costs, including those of their fleet, very closely. Similarly, an employer might be reluctant to commit to longer term leasing contracts due to business uncertainty, if moving into a new market area or employing interim staff where the business outcomes are still unknown. The perfect answer for all these scenarios is a flexible vehicle solution which provides an employee with a vehicle for a period of say three, six or even 12 months which can be altered easily and which offers an attractive monthly rental.
That solution is a mini-lease, substantially shorter than a conventional company car lease and provided without any form of penalty for altering the length of the period regardless of the reason. Mini-leases are short to medium term rental products of three, six or 12 months which provide the perfect answer to a company’s interim mobility needs.
A mini-lease solution bridges the mobility gap between daily rental and longer-term contract hire perfectly, and provides tailored rates for vehicle hires for up to 12 months. It also offers significant reductions against standard spot hire with no reduction in quality or service standards. Traditionally, daily rental firms have provided tariffs that peak at 28 days for longer term rentals and, historically, that may have been sufficient.
But today there are much wider business requirements in terms of meeting corporate mobility needs that combine cost efficiency with flexibility. With variable mini-leases, fleet managers can now choose the exact period for which they need the car from three, six or twelve months. Service delivery is exactly the same as with daily rental and there is a significant pool of brand new vehicles to draw on.
Typical vehicle leasing contracts of three or four years come with significant penalties for early termination or excess mileage charges, but mini-leases offer the provision of a brand new vehicle for a known period without penalty and without the need to commit to a long-term contract. The mini-lease concept is aimed at cutting costs and maximising flexibility for companies and, as there are no contracts or lease agreements involved, the mini-lease offer itself is very competitively priced and extremely cost effective – with no expensive exit penalties.
In the last 12-18 months, there has been growing interest from companies for which the mini-lease concept is ideal in meeting their current transport and mobility requirements. CLM provides mini-leases to its corporate clients through its rental division and has a significant pool of vehicles available for mini-lease, so sourcing vehicles couldn’t be any easier.
Utilising a multi-supply network with all of the leading rental suppliers, who between them have over 1,500 outlets in the UK, CLM can provide access to a whole range of cars and vans capable of meeting the requirements of corporate clients at extremely competitive rates.
These are accessed through a cutting edge web-delivered rental management system, which enables clients to book, extend and cancel vehicle rentals online, as well as monitoring existing rentals and accessing a comprehensive range of management reporting and invoicing. The system also allows vehicles to be sourced by location and by price to ensure it meets client’s specific needs.
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