One option that some companies may want to consider during times of economic uncertainty is to look at rescheduling their existing lease contracts.
Whilst most leasing companies will extend contracts informally at the same rental to allow for slight disconnects on delivery of the new car, for a non-regulated lease contract, it is possible to request that the funder extends the lease formally by carrying out a contract reschedule.
This will involve the funder calculating an extension to the current lease agreement, primarily based on the actual mileage compared to the original contracted mileage and is particularly useful if you have a number of drivers who have either undershot or exceeded their contract mileages.
For undershot mileages, rentals can be lower than the existing contract while, for those in excess of their contracted mileage, an extension helps spread the cost of the excess charge.
The funder will provide a new monthly lease rental figure, which may or may not include maintenance and other add-on services, such as accident management, fuel cards etc , depending on inclusions in the original contract.
Contract rescheduling periods are typically between 6 and 12 months, depending on the length of the original contract and save on cash flow as there is no upfront payment, just a continuation of the monthly rental. One quick note of caution, where you may have put in a large initial rental, it is likely the extension rental may go up.
The obvious benefit of this is that the driver remains in their current vehicle and there is a seamless transition to the extended contract service provision, so business disruption is kept to an absolute minimum.
For more information, please call your Sales Account Manager or email sales@cbvc.co.uk
