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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.

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Natalie Middleton

Natalie has worked as a fleet journalist for 16 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. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.