Growing caution among businesses is likely to lead to higher demand for medium term rental, according to Meridian Vehicle Solutions.

Phil Jerome, Meridian’s managing director said that the flexibility offered by medium-term rental of vehicles would become increasingly attractive as the prospect of economic downturn in 2017 becomes greater.

Jerome said: “The effects of Brexit are so difficult to forecast that the majority of businesses are adopting a wait-and-see approach to this year, something that is likely to affect all kinds of areas from capital investment to recruitment.”

He also stated that the vehicle rental market was changing, shifting away from traditional leasing products which may have offered little range outside a one day rental or three-year lease.

He said: “We have gradually shifted into a more sophisticated model where a wider range of suppliers have created a wider range of vehicles. All of this can only be good for fleets.”