| As economic confidence falters, Europcar trend tracking underlines the flexible role of rental |
According to new analysis from business mobility experts, Europcar, UK organisations are switching to rental as a key strategy to navigate exceptionally challenging operating conditions and avoid long-term financial commitments for fleet. Data from its current marketing campaign shows that engagement with a ‘commitment-free’ message is up 245% year-on-year. Increased employment and operating costs have seen insolvencies increase 3% year-on-year¹. A lack of appetite for recruitment is also evident, as the latest jobs report from KPMG and REC² shows the 44th consecutive month of decline for permanent placements. The recent rise in fuel costs as a result of the Iran war, coupled with subdued consumer confidence, is compounding the challenges facing organisations. Against this backdrop, vehicle acquisition remains one of the largest and most rigid capital commitments businesses have to make. Buying ties up significant capital and saddles a business with an asset that depreciates the moment it leaves the forecourt. Leasing typically locks businesses into three to five-year contracts with mileage caps, early exit penalties and fixed monthly payments that continue regardless of whether the vehicle is actually being used. Many organisations are therefore looking for alternatives to making long-term commitments through vehicle purchase or leasing. Europcar’s tracking of business ‘use cases’ for rental has seen a significant increase in the ‘flexibility’ and ‘no commitment’ categories over the past few months, as Tom Middleditch, Head of B2B Marketing, explained: “In a climate where businesses are eliminating discretionary spend, freezing headcount and managing cash week-to-week, committing to a lease of three or more years or a depreciating fleet purchase is increasingly hard to justify. That’s where rental comes in.” Europcar Long-Term Rental is the smart alternative for UK businesses looking for financial agility. Rather than owning or leasing a vehicle and paying for it continuously – whether it’s on the road or sitting in a company car park – the rental model means businesses access vehicles when they need them and incur zero cost when they don’t. The Europcar Long-Term Rental service means rentals are available from as little as one month, with no early exit penalties. Businesses can scale up or down as conditions change. Vehicles are delivered when they are needed, and rates include maintenance and 24-hour roadside assistance, removing unexpected cost spikes from fleet management. “The last few months have seen a marked shift in organisations seeking information about where rental can provide a flexible alternative to ownership,” added Tom Middleditch. “The range of vehicle choice, including electric vehicles, available from a wide network means a business can always opt for the right vehicle for the job each time. And the Europcar Delivery and Collection service eliminates the inconvenience of having to go to a branch at the start and end of a journey. It’s true usership.” Find out more visit: https://www.europcar.co.uk/en-gb |
UK businesses are switching to ‘usership’ for business mobility
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