Flexible rental programmes offered by car manufacturers via their franchised dealers are increasing in popularity with business users.<\/p>\n
Such programes offer fleets greater flexibility to add vehicles at short notice, to provide cover for temporary staff or for staff working probationary periods.<\/p>\n
White Clarke Automotive Solutions provides the technology and support for Ford and Kia\u2019s schemes, while also running similar programmes for General Motors overseas.<\/p>\n
Head of operations Craig Godfrey told Fleet News: \u201cI\u2019ve been talking to other manufacturers and they\u2019re very keen on offering these types of schemes.\u201d<\/p>\n
He believes there are several reasons for their increasing popularity among manufacturers and fleet operators: \u201cFor many, the flexibility of being able to change the vehicle if and when they change employee is invaluable as it has the potential to save money in the long-run.<\/p>\n
\u201cFrom the manufacturers\u2019 point of view, if they experience a break-down or a warranty issue then it means that they can place their customer in a same-brand vehicle. This avoids the customer driving a rival manufacturer\u2019s vehicle at a point in time when they might be temporarily dissatisfied.\u201d<\/p>\n
Graeme Banister, director of consulting for automotive and transportation at Frost and Sullivan, said these programmes offered fleets \u201cflexibility\u201d but they were \u201cnot the cheapest way of sourcing vehicles\u201d.<\/p>\n
\u201cBut for those companies that are growing quickly following the recession, they can provide a quick and simple way to provide a car or van to get a job done following a contract win,\u201d he added.<\/p>\n
\u201cAnd if an employee is working a probationary period, then flexi-rent programmes provide an ideal way to get them in a vehicle for its duration.<\/p>\n
“For companies that are looking to grow, flexi-rent schemes appeal because of their fixed cost \u2013 if they tie themselves in to a three- or four-year contract, then there\u2019s also the wear and tear costs to consider.<\/p>\n
\u201cWe live in an age where people want to change their mobile phone every six months when the latest model emerges \u2013 why not their car? I think that we will see more schemes of this kind. Ultimately, usability equals utilisation.\u201d<\/p>\n
Banister believes many manufacturers treat the vehicles that are placed in their flexible rental programmes as \u201cdressed-up demo cars\u201d.<\/p>\n
Nick Halliday, manager of rental operations at Ford, said one of the company\u2019s main aims in launching Ford Rental Flex last year was to ensure its corporate customers continued to have access to one of its own-brand vehicles.<\/p>\n
\u201cWe like to ensure that our fleet customers have access to a Ford vehicle at every opportunity,\u201d he said.<\/p>\n
\u201cWe also want to ensure that if our corporate clients have peak workloads or want to run a pilot scheme, for example, and take on additional staff for a three-month period, then this is a straight-forward and cost-effective way they can put them in a new vehicle.\u201d<\/p>\n
He added: \u201cWe believe that there\u2019s growth potential for the programme, but the key to its success is ensuring that dealerships are on board. At the moment, we have around 30 sites nationwide and we are aiming for 100% saturation.\u201d<\/p>\n
John Hargreaves, head of fleet and remarketing at Kia, launched a trial of its flexible car hire programme, Kia Rental, in March. It is now planning to roll it out to other dealerships. All models in Kia\u2019s range are available with each dealer deciding which vehicles to add to their offering.<\/p>\n
Hargreaves said: \u201cWe have 12 active sites, which is ahead of our initial expectations. We intend to expand the scheme to about 20 dealers in order to give better geographical cover.<\/p>\n
\u201cWe\u2019re targeting all types of rental opportunities \u2013 from retail to fleet. The fleet area is an important part of the business for Kia, and focusing on what our customers want and adapting to their needs is an important part of growing the business.\u201d<\/p>\n
Meanwhile, when Peugeot launched its mobility scheme, MU, in 2010, it was among the first manufacturers to do so.<\/p>\n
Peugeot spokesman Kevin Jones said: \u201cWe\u2019re now in a position to expand the MU scheme progressively during 2015 \u2013 not least through an enhanced website \u2013 as we better understand our customers\u2019 requirements.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"