SMALL businesses can plug into the benefits of regularly swapping cars thanks to the arrival of medium term company car leasing.
WHAT is ‘lifestyle leasing?’ Good question. It’s the capability for one of your employees – or you as the business owner – to potentially change their company car every three months. Sounds like that’s impossible? Well it’s all thanks to the development of medium term vehicle leasing.
Medium term leasing – developed for three to 12 month car leases – is a specialist product, but already we’ve experienced a handful of customers who change their car every quarter.
These customers are usually from SMEs – it’s where the company owner can make their own company car decisions on the spot.
Sometimes these decisions are practical and based on car need. During a three month period when the customer is not planning to use their car a great deal, they might lease a hatchback. Then, if they are going to spend a lot of time on the road, they would lease a prestige estate for the next few months.
However, sometimes the decisions made are based entirely on preference. Typically, they might have a 4×4 for the winter months; a prestige estate car for the spring; and something a little more sporty for the summer. This type of preference-based leasing is happening even during the recession.
Cars provided on medium term leasing are taken by the customer for a minimum of three months and a maximum of a year. The option provides a third choice beyond daily rental and the standard three or four year car leases.
And what about the costs?
Our medium term lease rates are much, much lower than daily rental costs and typically around only 20% more than a three year lease.
This premium seems to be one that many customers feel is worth paying either because they want to change their car regularly or they believe that retaining a high degree of flexibility over their business car operations is important.
Current prices include a Volkswagen Golf 1.9 TDI Match 5dr for L280 per month based on a six month lease at 1,250 miles per month. And A VW Passat Highline 2.0 TDi Estate for L349 per month over the same period.
The cars are all less than two years old and include a standard annual mileage allowance of 15,000 miles a year or 1,250 miles a month. Maintenance, breakdown recovery and road fund licence are also included in the price.
