Fleet News

New recruits will boost short-term company car leasing, says Equalease

Rising UK recruitment levels are already providing a boost to short-term company car leasing in 2010, says Equalease.

A report issued this week by PricewaterhouseCoopers states that 63% of UK firms are looking to take on more staff this year and Equalease managing director Paul Ashton said that employers were learning that short-term leasing was an ideal way to provide a company car during staff probationary periods.

He explained: “The recession means that employers are even keener than usual to take a good look at probationary staff over an initial three-six month period to ensure that they are the right person for the job before committing.

“These people often need a company car but their employers do not feel prepared to commit to a new car purchase or to take out a three or four-year lease until the employee becomes permanent. Also, many companies have ceased to operate a pool fleet out of which a car could have been provided.”

There are several options at the end of the short-term lease. If the employee has passed their probation, the car can be handed back and a new one ordered on long term lease from Equalease or another leasing company. If the probation is unsatisfactory, the vehicle can simply be returned.

Ashton added: “Another alternative is simply to keep the vehicle and renew the medium lease for another three months on a rolling basis, and the number of employers that are opting to do this is growing all the time.”



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