The perception that vehicle rental is for short-term needs to be dispelled, flexible solutions are the future
For many years, the belief has existed among businesses that vehicle rental is a short-term proposition; something to temporarily plug the gaps.
The truth is that this model is becoming increasingly archaic, as new, flexible, longer-term solutions are introduced that help to boost mobility while reducing the headache associated with contract hire or purchase.
Of course, different businesses have different ways of acquiring their essential fleet, and some are understandably wary about committing to a longer-term rental arrangement.
The likes of fleet managers would perhaps acquire the majority of their vehicles through purchase, lease or contract hire, and not consider rental as a long-term solution. This means rental is often used within fleets as a short term solution initially, with fleet managers coming to realise that flexible vehicle hire is a perfect way to acquire a fleet once they have begun to reap the benefits.
Often when speaking to a fleet manager of an SME, the individual is not even aware of flexible vehicle hire during the initial conversation, and this is another common obstacle – raising awareness of the model and its multitude of benefits.
National companies, on the other hand, have a different perception – larger businesses very much view it as a longer term solution, as they have an understanding around the no commitment and flexibility parts of the rental package, which many misinterpret.
The greatest value in employing a long term rental model is having all assets managed; as Northgate takes care of servicing, maintenance, and repair, keeps vehicles on the road for longer through a partnership with the AA, while the flexibility to adjust the fleet without penalty reduces downtime and saves money, making it ideal for a long-term approach.
With costs of maintenance, road tax, CVRTs and much more being taken out of the client’s hands, effectively the whole life cost of the fleet is reduced, delivering both cost and time savings.
In an industry like healthcare and pharmaceuticals, where downtime can result in spoiled products and create supply chain problems, it is vital to have solid and sustained fleet performance.
Long standing partnerships with companies show that it is possible to change the perception of vehicle rental as short-term, and illustrate the many benefits that can be had from switching to a flexible, long-term model – something that is applicable to businesses of all sizes in every sector.