Trend towards longer term CV rental on the rise, TLS research shows

                                   
The use of rental as a long-term solution to commercial vehicle acquisition is increasing, with around 60 per cent of vehicles on rent now falling into this category, according to new research by TLS Vehicle Rental.

This represents a significant rise in rental vehicles being taken for periods of longer than six months compared to the company's last research into this area two years ago.
Sean Welham, marketing director at TLS, explained: "There is sometimes a perception that rental is mainly a short term solution to a vehicle need but this is less and less true.

"While spot rental will always be an important part of our business, a shift has taken place over the last few years and it has become a smaller element."
Welham said that the flexibility of rental - the ability to hand the vehicle back the moment that the need for it ended - was a major part of the appeal to long term renters.

He said: "Our research suggests that there are a certain number of fleets out there that clearly understand the value of long term rental. They have a core of their own fleet vehicles but, on top of that, rental is being used to add flexibility.

"These fleets are using rental to satisfy their vehicle need largely for jobs like fixed term contracts. They might eventually retain a rental vehicle for a year or longer but as soon as the contract ends they can just hand it back with no penalties. It's an intelligent use of rental as an acquisition method."

Welham added that the challenge facing TLS and other rental providers was to encourage the 88 per cent of commercial vehicle fleets that say they have no plans to change their funding method to take a look at rental as a longer-term solution.
Welham continued: "What we need to do is get fleets to look at the factors behind their current choice of acquisition method and compare different options. Our belief is that, in these situations, rental often comes out as a good choice."

TLS has produced two guides designed to encourage fleets to enter into this decision making process, called Things to Consider Before You Contract Hire and Things to Consider Before You Purchase - both available at www.tls.co.uk.
Also, at www.trytls.co.uk, fleets can take The TLS Challenge, which sees an animated character called Ivan ask basic questions about the way in which their fleet is currently funded as well as make wider queries about future prospects and handling risk.