JSPR - Press office: Leasedrive Velo - Mid-term vehicle rentals continue to gain in popularity







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Leasedrive VELO

Mid-term vehicle rentals continue to gain in popularity
23 May 2006

According to specialist supplier, Stopgap Mid-term Vehicle Rental, more companies are recognising the financial benefits of mid-term rental vehicles over pool or company cars. The company reported an 81 per cent increase in the total number of mid-term rental days sold in 2005 over the previous year. In 2004, the rise was 37 per cent.

Roddy Graham, commercial director of the Leasedrive Group said: “While this huge increase compared to the previous year can be partly attributed to major new account wins, we have nevertheless identified a clear increase in this type of rental product through our specialist rental division. The last five years has seen accelerated growth for mid-term vehicle rental.

“Interestingly, more and more companies are using mid-term vehicle rental for new employees. A mid-term rental vehicle is increasingly provided as an employee benefit to those eligible for a company car during their probationary periods. Mid-term vehicle rental lasts until employment contracts are confirmed and new car orders delivered.

“Nineteen out of our top 20 leasing and daily rental customers regularly use mid-term rental, a significant jump over last year. The average rental length is now 81 days, with ex-pats and new employees on probation accounting for 90 per cent of our business. Other uses include cover for major accident repair.

“Mid-term rental used to be overlooked but companies are identifying the savings to be made over the more traditional methods of providing temporary transport.”

“A compliance issue often overlooked is that, if vehicles are rented for more than 14 days, companies need to report motor insurance and P11D details. Rental:Manager, our online booking service, makes registration a simple process.”

Stopgap Mid-Term Vehicle Rental offers a wide range of current models, from superminis to luxury coupés to vans, for corporate vehicle rental days of 28 days or more. Rates are substantially reduced compared to daily rental.