The three-year/60,000-mile contract hire lease, for decades the fleet industry standard, is becoming less significant as companies look for greater flexibility, it is claimed.
The “slow death” of the three-year/60,000-mile contract is due to fleet manager realisation that today’s cars have the capability to withstand higher mileages, while fleets and their contract hire suppliers have become much better at working out which cycle works best for which customer based on a range of variables.
Additionally, said Phil Jerome, managing director, Meridian Vehicle Solutions, the leasing market was more adaptable to genuine customer needs with a wider range of leasing provision, including shorter term leasing cycles.
He said: “You don’t have to look back too many years to find a time when the choice was basically between a three-year lease and daily rental. Now that is no longer the case. We have gradually shifted into a more sophisticated model where a wider range of suppliers have created a wider range of provision, offering different lengths of hires and leases across a wider range of vehicles. All of this can only be good for fleets.”