Mini-Leases: A New Approach to Temporary Car Leasing
Mini-Lease: Flexible, Temporary Car Hire
CLM is currently witnessing a surge of corporate interest in its Mini-Lease offerings, with bookings for the flexible, temporary car leasing product showing significant growth.
Here, we examine the reasons behind the popularity of temporary car lease options and why corporate customers are using mini-leases to meet their mobility requirements.
Meeting temporary needs with a temporary car lease deal
One issue faced by many companies is that of providing temporary vehicles for new employees who may still be serving probationary periods but need to be mobile straight away, or providing vehicles for those engaged on special projects or short term contracts.
Often, new starters require access to company transport to carry out their new job function, but don’t have confirmed contracts of employment that entitle them to a company vehicle full-time.
New company cars are typically leased for three or four years, so ordering one for a new starter still on probation, or to provide cover for a short-term contract or project is fraught with potential pitfalls – not least the reallocation of the vehicle if the new starter isn’t confirmed as a full-time employee, or when the contract ends.
In such circumstances, some companies may be tempted to allow new starters or contract workers to use their own vehicles and claim a mileage allowance while waiting for their new company car to arrive.
A flexible temporary car leasing solution
However, a better idea for corporates with interim mobility needs of longer than 28 days (the normal limit for daily rental vehicles), but who don’t want to commit to a three year lease, is Mini-Lease. Mini-Lease offers the perfect, flexible solution.
Substantially shorter than a conventional company car lease, mini-leases are short-to-medium term rental products of three, six or 12 months which provide the ideal answer to a company’s interim mobility requirements.
A temporary vehicle 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.
What makes CLM Mini-Lease stand out?
CLM has been offering mini-leases with a number of unique selling points to customers for many years.
With variable mini-leases from CLM, companies can choose the period for which they need a car, from three months upwards. Service delivery is exactly the same as with a daily rental vehicle and there is a substantial pool of brand new vehicles to draw on.
With a short term business car provided by a daily rental company, on the other hand, drivers don’t know exactly what model they will be receiving during the lease period, nor how many times the vehicles will be changed during the short term lease period.
The daily rental company may need to change the vehicle every six months, in line with its manufacturer agreements, which means that multiple models may need to be entered on the driver’s P11D form.
Rather than having to choose from a general class of vehicles without knowing exactly what they will receive, a CLM Mini-Lease customer is able to select what they would like from a list of available vehicles. And, typically, they keep the same one for the duration of the short term rental period without having to chop-and-change frequently. When a vehicle is due for de-fleet, the customer is called to arrange an exchange and once again they can select from a list of actual vehicles.
Servicing is not typically an issue, as the vehicle usually comes off-hire before its first service is due, while the terms of the agreement covers any ad hoc or exceptional work that may be required.
If a company wants to order a batch of the same vehicles so that all staff are on the same footing and status with no employee rivalry, then a mini-lease is again the ideal answer. Ordering a batch of exactly the same vehicle under the terms of our flexible short term car lease options is very straightforward thanks to the large number of vehicles available.
Meeting demand for temporary car leasing in the corporate world
To cater for a growing demand for mini-lease vehicles from customers, CLM provides access to a significant pool of vehicles of various makes and models intended to make sourcing vehicles as straightforward as possible.
As well as having its own pool of temporary vehicles for hire, CLM’s corporate rental arm also operates a multi-supply network with all of the leading rental suppliers. Between them, they operate over 2,450 outlets in the UK, providing access to a huge range of cars and vans at extremely competitive rates – so finding the right model is never a problem – whether you require a three month car lease or you need to lease a car for 12 months.
CLM also employs an industry-leading 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.
Cost effective temporary leasing solution
As the mini-lease vehicle offers a flexible alternative to suit a company’s exact requirements for length of hire and number of vehicles, it is usually the most cost-effective option. Analysis by CLM has shown that temporary car leasing under the terms of our specially constructed Mini-lease offering can be virtually as cost-effective as a contract hire agreement over a much longer contract period.
Compare that to the cost of allowing employees to use their own vehicles on company business while they await the arrival of their company-provided vehicle, or to meet the needs of a special project or contract.
At 45p per mile under the Government’s Approved Mileage Allowance Payment (AMAP) scheme for the first 10,000 miles, employees can soon notch up significant mileage costs in their own vehicles.
These also bring duty of care risks, as there is no guarantee that the vehicles are fit for purpose, are maintained regularly or serviced in accordance with manufacturer warranty instructions.
Such deficiencies in the event of a serious at-fault accident can leave the company open to legislative charges, not least under the Corporate Manslaughter Act.
Mini-lease vehicles on the other hand are brand new, regularly serviced in line with manufacturer warranties, and typically have lower carbon dioxide emissions as well as being tax-efficient.
With these factors in mind, many companies have set up fleet policies that include the provision of short term lease cars to meet temporary, contractual or seasonal requirements.
This gives you the freedom of flexible rental without having to commit to contract hire or purchasing of vehicles, which would represent a much greater cost to the company and a far greater strain on cash-flow.
Benefits of CLM mini-lease
- Choose rental period from three to 12 months
- Known vehicle for duration of rental period
- Choice of exact model, not a group of vehicles
- Single, not multiple, vehicles on P11D
- Competitive pricing
- Book vehicles online
- Latest models with regular servicing
Finding a temporary car lease expert
Temporary car hire deals that are as flexible as CLM Mini-lease are not all that commonplace. We know that flexible car leasing is key to saving you time and hassle. Discover more about Mini-lease to see how it could help your organisation.