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Diesel uncertainty prompts move to medium-term rental

Concerns over the future of diesel as well as economic uncertainty are prompting more fleets to turn to medium-term rental, according to Meridian Vehicle Solutions.

Meridian MD Phil Jerome

Meridian MD Phil Jerome

The firm, which offers flexible short-term vehicle solutions, says it’s increasingly seeing a pattern of businesses being wary to commit to a standard three to four-year company car lease and instead turning to a three to six-month rental.

Phil Jerome, managing director, said the potential ‘demonisation’ of diesel was playing a role, with some fleets starting to question whether they should be committing to diesel vehicles at all for the length of a standard lease while some businesses are concerned over economic conditions.

“Against this backdrop, people are increasingly using medium-term rental as a solution, a limited commitment while some of these issues play out. Businesses can then, hopefully, get a better idea of their fleet requirements in the longer term,” he explained.

Jerome added that this trend was especially apparent in demand for semi-prestige vehicles such as the Volvo V40 and S60, and the Volkswagen Golf GTD.

“We have several customers that habitually put drivers into entry-level diesel saloons from the prestige German manufacturers. What we are able to offer is a solution that allows them to allocate broadly comparable, brand new, dealer-supplied vehicles without the need for long term commitment.”For more of the latest industry news, click here.

For more of the latest industry news, click here.

Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.