If three years seems like a bit too much of a commitment for a
lease, how about three months? This is the premise behind relative
newcomer Flexxilease, which offers very short-term leasing to
individuals and businesses. Contract terms start from three months,
and can be renewed on a rolling three-month basis, explains Hardy
Sohal, group marketing manager at the lessor, which is part of Car
Crash Line Group. Its parent’s core business is providing drivers
with courtesy cars after accidents, but it set up Flexxilease in
2001 in order to make better use of its fleet, and now has around
4,000 customers on the road.
“We’re very flexible,” Sohal says. “The bread and butter of
business cars will always be vehicles on two or three year contract
hire, but our product can sit alongside this, as needed.” Sohal
gives the example of a sales manager needing cars for new joiners
on probation periods, who does not want to commit to a long
lease.
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Flexxilease is itself a lessee; its vehicles – ranging from
Hummers to Ferraris, with many more traditional ‘fleet’-type models
in between – are on one- or two-year leases from manufacturers, and
Flexxilease then hires them out to clients, on a fully-maintained
basis. Flexxilease, a BVRLA member, abides by the association’s
Fair Wear & Tear guidelines. Its business customers are largely
from the SME sector, and find them through the internet – “97 per
cent of our business comes via the web”, Sohal says – and through
brokers.
Sohal believes SMEs are becoming more receptive to “usership,
not ownership”, especially to Flexxilease’s low-cost,
low-commitment product. “The credit crunch has helped us, as it has
made small companies look more critically at their costs, and
helped them realise that outright purchase of a vehicle may not be
the most efficient use of funds,” he explains.
Flexxilease’s short-term lease structure is particularly
attractive for one type of businessperson in the public eye, for
whom having the most up-to-date car is hugely important:
celebrities such as actors and sportspeople. “Before, they would
buy a new car every year or so, and take a large hit on first-year
depreciation,” Sohal says. “Flexxilease allows them to refresh
their vehicle more often, and more economically.” Sadly, he is not
at liberty to disclose the names of famous clients – but “watch
this space”, he laughs.
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By GlobalData Motor Finance Issue: 44 – June 08
Published for the web: June 27 08 9:32
Last Updated: June 27 08 9:33
