In uncertain economic times, the ability to be able to remove overhead from the business quickly is highly desirable.
At CBVC, we advise most of our clients to keep an element of their fleet on Flexi-Rent. These are vehicles on short-to-medium term rentals which can be returned at short notice after the initial rental period with no early termination penalties, with the exception of certain excess mileage and recharges for any damage incurred.
Our clients often ask us a number of questions regarding the introduction of Flexi-Rent and how it can work to their advantage.
Q: How much of my fleet should be on Flexi-Rent?
A: As a rule of thumb, we would recommend between 15-20% of the fleet should be on Flexi-Rent to provide the optimum flexibility. Then you can react to market conditions accordingly. Another measure we employ is to assess our clients’ exposure to their largest customers – and adjust the fleet in line with this exposure and risk. For those dependent on one particularly large client, for example, it may be advisable to adjust the proportion of the fleet on Flexi-Rent in proportion to the size of the customer.
Q: How much does Flexi-Rent cost in comparison to a three year lease?
A: One major leasing company is currently offering a Ford Focus Zetec Estate 120ps for £356 per month plus VAT, based on three years/ 24,000 miles per annum fully maintained. On an 84-day CBVC Flexi-Rental agreement the same car would cost £427 per month. But, the major difference between the two cars is that you can return the Flexi-Rent vehicle or extend the contract for up to 12 months without charge. But the early termination charge on the three year contract after, say, six months’ use would be a whopping £5,340.
Q: We have had trouble in the past Insuring rental cars?
A: No worries – with Flexi-Rent we can include Collision Damage Waiver (CDW) for as little as £2 per day, with a £500 excess, to put your mind at rest. That way you end up only paying for the days you actually have the car for – without the worry of early termination penalties.
Q: What are the main benefits of Flexi-Rent?
A: Flexi-Rent offers all our customers a series of benefits, including:
- Short term contracts mean low or no termination fees
- Cash flow, no large deposits usually only monthly in advance
- Insurance can be arranged on a vehicle by vehicle basis
- One way movements such as to and from airports
- A simple online booking system
- Corporate pricing
- National coverage
- Dedicated account management
- Invoices verified to agreed terms
- For fleet managed clients, CBVC can provide a “Reason for Hire” analysis to monitor and cost use of rental vehicles and assist in devising strategy.
For more information contact richard.james@cbvc.co.uk or james.riordan@cbvc.co.uk
