Consultant Colin Tourick argues that small businesses should take advantage of the glut in nearly-new vehicles – by cashing in on the lower lease rentals available.Research by used valuation experts EurotaxGlass’s found that 22% of used cars on forecourts are less than a year old.
But only 8% of customers want them.
The figures at 18 months are not much better; 21% of the stock is being chased by only 12% of the demand.
Most used car buyers are looking for three or four year old cars.
This situation provides a golden opportunity for small businesses.
Lease nearly new cars and vans on contract hire rather than new cars.
A 3-6 month old car has suffered its initial hit of depreciation. It’s within the manufacturer’s warranty. And has had any new car niggles ironed out.
Contract hire companies or good brokers should be able to buy these vehicles and lease them to small businesses.
The rentals should be much lower than an equivalent new car.
Once it might have been a problem to ensure the satisfactory condition of these vehicles. Not today.
A few digital images can be emailed by the dealer/rental company to the lessor and then on to the business owner to accept.
Sourcing these cars might have been a problem some years ago, too, but there are clearly loads of these cars in the market right now. The web can make it relatively easy for leasing companies to source them.
Some lease companies are doing a good trade in these right now. Others will say they have little demand for nearly-new vehicle leases. Well, go ahead and ask your lease company or broker – and create that demand.
For small businesses that can move quickly – the cost savings are there to be enjoyed.
- Colin Tourick is a management consultant specialising in reducing business car fleet costs and risks.
- He is author of the Business Car Manager Knowledge Bank downloadable pdf guides. Click on this link to take you straight there: www.businessmotoring.co.uk
- You can visit Colin’s website at www.tourick.com.
