DEALERS are starting to use medium term rental as a way of doubling sales while new car delivery times remain long.
This works by the dealer offering a new medium term rental car to their customer through a provider such as Meridian Vehicle Solutions to fill the waiting time, then acting as the supplying dealer for that car.
Phil Jerome, Meridian Managing Director, said: “Many franchise dealers have long waiting times for some models but others are available for immediate delivery.
“What doubling means is that they can give customers who face a long wait for their new vehicle the option of taking another new car on medium term rental to fill the gap. We can then act as the funder and overall provider of that rented vehicle.
“The dealer has effectively sold two cars for one sale and, in some cases, they also buy back the rental car from us to put into their used approved programme.
“It is a very effective way of generating sales and stock while meeting customer needs.”
Jerome said that Meridian was able to help dealers by providing pricing and promotional material so that medium term rental could be integrated into the new car sales process.
“Dealers know that they are currently facing long delivery times for many popular models and medium term rental is a way of meeting the customer’s need for a vehicle, heading off a weakness in their sales proposition by providing a cost-effective solution.
“While this is an element of our business that is in its infancy, interest from franchise dealers of all kind has been immediate. They can see the many benefits doubling brings.”
Meridian provides medium term contracts to brokers and other intermediaries for periods of 3-12 months, with monthly lease rates comparable to long term contract hire and leasing. All cars are supplied new in a matter of days and delivered directly from franchise dealers.