Liquid Fleet has noted a significant rise in the number of businesses turning to short-term rental cars for probationary employees. Between June and November, the company observed a 12.5% increase in these rentals, where employees are supplied with new five-door petrol or hybrid hatchbacks or SUVs.
This trend is attributed to economic caution following the recent Budget and the broader economic slowdown.
Instead of committing to three-year contract hire agreements from the start, many companies now prefer to use rental vehicles to keep new employees mobile until their probationary period is completed.
The average probationary rental period has increased to eight months. This includes the standard six-month probation period plus an additional two months to account for the time required to order, produce, and deliver a contract hire vehicle.
Martin Potter, Liquid Fleet’s commercial director, commented: “It’s interesting how the trend has grown in the past few months. Companies can get their new recruits mobile within just a few days of ordering a car from us. And with longer-term rental at eight months, it means they reduce costs when compared with short-term rental whilst avoiding the long-term commitments associated with contract hire.”
He also noted that providing employees with a brand-new car not only serves practical needs but also boosts morale, creating a positive impression as they join a new company. This flexible solution allows businesses to balance economic caution with maintaining employee satisfaction.