In an automotive climate where semiconductor chip issues and problems with supply from eastern Europe are combining to create unprecedented vehicle shortages, many fleet businesses are turning to shorter term solutions to fill the gap while they wait for vehicle production to catch up with demand.
First, it’s helpful to define the terminology. While we use ‘rental’ and ‘lease’ differently, they are both ostensibly a car lease agreement between two parties. The difference is that rentals are typically much shorter-term and more flexible, while leases have more defined terms over a longer period.
With that cleared up, it’s worth noting that SG Rental and Litelease do have some common features.
SG Rental agreements are designed to give your rental fleet a vehicle when you need it most. This can, for instance, be when one of your vehicles is suddenly put out of commission and you need to continue with no loss of efficiency; or if you need more vehicles in the short-term for occasions like festivals, and other special events.
With differently structured tariffs for 1-2, 3-6, 7-27 and 28+ days, SG rental is the ideal option for anything up to three months of urgent vehicle usage where flexibility and situational reactivity are paramount concerns.
By contrast to SG Rental, Litelease is a minimum term vehicle rental agreement between two parties where you give up some of that flexibility for a more structured agreement with lower overall costs. Specifically, SG Rental carries with it a £2.95 daily fee for road fund license for cars and a £2.25 daily fee for road fund license for LCV’s, which Litelease agreements forego in exchange for taking the vehicle over a minimum period of 55 Days.
Litelease agreements are for a minimum period of 55 Days and stipulated at the point of booking. The vehicles are particularly handy in instances where you have a gap in availability between handing back an old leased fleet vehicle and a new one becoming available. (A particularly prominent issue with current vehicle availability). In those circumstances, if you’re told you may have, for example, a six month wait for your new car or van, a flexible Litelease agreement can help your rental fleet to bridge the gap.
The answer to which agreement is best between SG Rental and Litelease basically comes down to what your needs are.
If you’re in a hurry and need a vehicle for the short term only, SG Rental is ideal.
However, if you need a car for a little longer – from a few months to around a year – Litelease is the perfect option.
One really positive benefit of renting vehicles through us is that you can always start with the shorter term, and if you find you need a vehicle for longer, you can transition your agreement. So you can opt for SG Rental, then move into a Litelease agreement on the same vehicle from the point you decide you need it for longer – and get the added benefits from the improved terms that a longer Litelease agreement brings.
Whether you need a shorter-term rental, a vehicle for the medium-term, or a flexible agreement that can start short-term and stretch if needed, here at SG Fleet we’re well placed to help keep your fleet mobile.
Call us on 0344 854 5188 or email email@example.com to learn more.