Long Term Rental vs Leasing
Whats the best option?
Here at Jensen Fleet, we appreciate that your business has unique needs. With that in mind, we will look at the differences between leasing and rental in the longer term.
Both options offer low upfront payments, leasing, would be three months payment upfront and these are used as a deposit with the three final months been non-chargeable. On rental, Jensen Fleets policy is one month upfront and one month held on file to be refunded at the end of the contract.
Leasing is a finance agreement through a finance house with a set term and mileage whereby rental is a month-to-month contract that allows the business full scope to hand back the vehicles when they are finished with them. We find the rental works great in the below situations:
- New employees on probation periods
- Seasonal and busy periods
- Lead in vehicles
- Change vehicle type as required.
- No long-term commitment
On the other hand, leasing would be more suitable if employees are looking to stay in the same vehicle for the whole term. Typically lease agreement cover 36 to 48 months.
The cost of a lease vehicle would be significantly lower than rental, however, this is due to the longer hire period, better interest rates and the increased resale values of lease vehicles.
Both agreements would cover routine maintenance with the monthly rental figure including the maintenance, whereby the lease contract would have a separate maintenance figure per month. Maintenance on both contracts would cover routine servicing, Road Tax. DOE/NCT & tyres.
Leasing allows the customer and the driver more freedom to select any car/van they require. They can request colour, spec, kit out & can include extras such as panelling or signwriting. Rental on the other hand the customer would only have the options of what is available at that specific time. Just to remember, At Jensen Fleet we do have a wide and varied fleet of rental cars and vans on our rental division.
Both contracts offer great benefits to our customers and a in a lot of cases a customer starting as a rental customer can progress to a lease customer once the see the many benefits of dealing with Jensen Fleet.
For more information & to see what suits your business best, contact us on info@jensenfleet.ie or visit jensenfleet.ie
