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Medium-term rental being used for permanent company car provision, reports Meridian

One in four orders (25%) for medium-term rental are now being used to provide permanent company car, according to figures from Meridian Vehicle Solutions.

Phil Jerome, managing director at Meridian Vehicle Solutions

The firm says that competitive pricing compared to 3-4-year lease rates mean that businesses are now using medium-term rental on a rolling basis, with decisions based on a variety of reasons.

Phil Jerome, managing director, explained: “Some customers simply like the idea of having a new car very regularly and perhaps use the opportunity to try out a range of vehicles or take different types of car that suit their needs over the coming months.

“For others, the reasoning may be more practical. They may not know how long they will need a car or perhaps don’t want to make the financial commitment of a long-term lease for specific financial reasons.

“We even have some customers using their medium-term rental car on a pool basis. As long as they need some flexible provision over the next few months, it is a good option.”

Jerome added that understanding of medium term rental as a product was increasing as well as market awareness of Meridian itself.

“There are now a group of fleet managers who automatically think of us in a number of scenarios such as when they have a new employee start on a six-month probation. Our feeling is that we are becoming an established part of the fleet acquisition portfolio, usefully bridging a gap between daily rental and longer-term leases.”

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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.