Car Lease Cost | Cheaper Car Lease
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5th January 2012
A smarter approach to vehicle leasing can reap the long-term benefit
20th March 2013

I was talking to a friend yesterday and we came round to the subject of employment longevity in today’s workplace – both quickly coming to the conclusion that no one works for a company for life anymore.

Statistics

Statistics show that the average person will start between 10 and 15 jobs across their working lives. This level of change brings a wide range of complexities for companies across the UK; one of which is the quandary of three-month probation periods and the need for a new vehicle.

The vehicle contract hire market is awash with companies offering variation of long term leasing deals between 12 and 36 months, but this offers no comfort to anyone tasked with organising a new starter on the employment merry-go-round beginning the usual three-month probation period.

There are a number of questions, and financial issues, left to deal with in such a scenario. None more so than ‘what if the role doesn’t work out for either party?’

It’s obviously beneficial to everyone that shorter leases or cost effective rentals covering the period an employee is guaranteed in the workplace is the way forward but we know that this isn’t always the direction companies go.

The Internet

Too many just start to trawl the Internet for the best deal they can find to resolve the panic of the ‘new guy’ starting in a few weeks. Much better would be a considered approach to the problem where a leasing strategy is followed to ensure the journey from probation period to permanent is matched by vehicle short-term lease/rental to long-term contract hire.

Organising a new vehicle is rarely written into someone’s job description. It generally falls to either the MD, the admin/PA staff or in many cases the driver themselves. This scattergun approach leads to immediate uncertainty and confusion and companies who know that these issues are often going to arise need to create a policy and plan to manage these situations.

If they don’t then complacency and poor judgement will lead to long-term financial implications, unhappy staff and an expensive vehicle sitting in your car park.

Questions arising from this are:

  • What is your short term leasing to long-term contract hire policy?
  • Who is responsible in your company for sorting these situations out?
  • What’s your experience of resolving these issues?

…Let us know below in comments.

Next week we’ll look at the issues all parties face, from MD to new employee, when dealing with new staff and the need for a new car and how best to resolve with some hints and tips.

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