ARI Fleet UK is now offering customers finance lease vehicles with no mileage limits, or end-of-life damage charges.
Traditional leasing presents fleet managers with cost issues, particularly around the damage recharges for de-fleeted vehicles, it says.
FN50 analysis shows that the average recharge for cars was £322 last year, up from £308 in 2017, while the average recharge for vans was £376 for vans, down from £414 the previous year.
The finance lease product is part of a suite of flexible funding solutions from ARI Fleet UK which aim to provide cost certainty, controlling every element from funding and in-life, to disposal.
Rory Mackinnon, head of asset funding at ARI Fleet UK, said: “Fleet managers are looking for support on cost management strategies and we have been working closely with our customers to deliver this.
“As part of this process, we identified an opportunity for specialist finance solution to help drive down fleet costs. For too long, fleet managers have had to contend with excessive leasing fees and we are looking to challenge the status quo and disrupt the market.
“For fleet managers that want a full maintenance package, we offer a ‘pay as you go’ solution, which we deliver for tens of thousands of vehicles in the UK. We manage every penny of expenditure.”
Mackinnon explains that fleet managers no longer have to worry about fluctuating mileage, or excessive wear and tear, as these are taken into account at the start of the finance lease, when the residual value is agreed with the lessor.
Then throughout the entire vehicle’s life, ARI controls spend and provides visibility through its in-house fleet management services including SMR, accident management and driver risk management, to provide complete control and transparency. Then at the end of the finance contract, lessors will receive 100% profit from the sale of the vehicle.
Mackinnon continued: “Vehicle funding has a significant impact on a company’s ROI at every stage of the vehicle lifecycle and with the changes in IFRS, we believe it’s time to review the ways it is done, so our customers can reap the benefits.
“Customers can now choose from a complete suite of funding options including finance lease, contract hire, solutions for outright purchase and hire purchase, which allow customers to maximise their return, minimise any risk associated and retain all the rewards.”