July 3, 2018

Challenging Perceptions With Mini-lease

Challenging Perceptions with Low Cost Car Leasing : Mini-lease from CLM

Mini-lease: A Surprisingly Low Cost Car Lease

Flexibility and commitment are old adversaries; commitment equals structure, predictability, dependability and lower cost. For instance, a low cost car lease often means tying in to an agreement for years. Flexibility, well it usually means you can change your mind regularly, don’t have to be loyal and you’ll have more experiences … but at a higher cost.

Thinking 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. The cost of leasing a vehicle in the short term 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, commitment and cost of leasing a vehicle balance each other.

fleet policy

If you only need a vehicle for a few months, our low cost lease 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 with our low cost car lease 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

SchemeMini-leaseContract Hire
Total Rental Costs (ex VAT)£1,898.35£6,992.77
Mileage Allowance12,000 miles20,000 miles
Pence Per Mile16ppm 35ppm
Maintenance IncludedYESNO
Contract Commitment6 Months24 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 the cost of leasing a vehicle 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 low cost car lease like our Mini-lease would suit your business and you’d like to sign up, please get in touch on 0800 776 5940. You can always visit www.clm.co.uk/vehicle-rental/mini-lease to looks at the special offers and compare and contract vehicles to see what would suit your organisation the most.