Flexi-Rent is ideal for companies that are expanding or taking on more staff to fulfil new contracts, as their new starters frequently require access to company transport but often don’t have confirmed contracts of employment.
Ordering a new company car, which is typically leased for two, three or four years, for a new starter still on probation can be fraught with problems – not least if the probationer’s position is not confirmed by the company.
However, Flexi-Rent is ideal for providing a temporary vehicle until the appointment is confirmed. And by using Flexi-Rent, the company can avoid getting locked into costly long-term vehicle leasing contracts, which typically come with significant penalties for early termination or eye-watering excess mileage charges.
Flexi-Rent can offer the provision of a brand new vehicle for a flexible period without the need to commit to a long-term contract.
If the new starter is successful in reaching the end of their probationary period and securing full time employment, the Flexi-Rent vehicle can be extended until a permanent vehicle is sourced. However, if the new starter is unsuccessful, then the vehicle can simply be off-hired or kept on hire for the next new starter.
In these uncertain economic times, there are often wider business requirements in terms of meeting corporate mobility needs that combine cost efficiency with flexibility.
With Flexi-Rent, fleet managers can extend their vehicle hire for the exact period for which they need the car. Service provision is exactly the same as with daily rental and there is a substantial pool of brand new vehicles to draw on.
Flexi-Rent is aimed at cutting costs for companies and, as there are no contracts or lease agreements involved, the offer itself is very competitively priced.
Duty of care
Some companies allow their staff to use their own cars on company business or while they are waiting for their new company car to be delivered in return for payment of a mileage allowance.
The Government’s Approved Mileage Allowance Payment (AMAP) scheme allows 45p per mile to be reclaimed for the first 10,000 miles and, as a result, employees can soon chalk up significant mileage costs in their own vehicles.
Such vehicles may also present risks under duty of care as there is no guarantee that they are fit for purpose, maintained regularly or serviced in accordance with manufacturer warranties.
Such deficiencies in the event of a serious at-fault accident can leave the company open to various punitive charges, under legislation including the Corporate Manslaughter Act.
On the other hand, Flexi-Rent allows companies to provide brand new, fully serviced and legally compliant vehicles that meet duty of care concerns and ensure that the company is completely covering its corporate risk.
This gives the company the freedom of flexible rental without having to commit to contract hire or purchasing their vehicles, which would represent a much greater cost and a far greater strain on cash-flow.
For more details on CBVC’s Flexi-Rent and other rental programmes, please contact either james.riordan@cbvc.co.uk; or richard.james@cbvc.co.uk
