Long-term rental and leasing services available on the market can support the development of transport companies. However, as shown by the results of a study commissioned by EFL, awareness of these services is not very widespread among transport companies.
The key to leasing, long-term and short-term rental
The key to distinguishing between car rental services is the duration of the contract. A short-term car rental agreement usually lasts no longer than six months. An entrepreneur can use the vehicle without being forced to purchase it, thereby neutralizing the risk associated with making an unnecessary investment. This service applies to all classes and types of vehicles.
Leasing is the transfer of a vehicle for use for a period of six to 24 months, which is not classified as an operating lease. On the other hand, long-term rental can be characterized by combining two services: an operating lease and a service contract. The duration of a long-term rental agreement is no less than 24 months, but no more than 60 months.
Awareness and prevalence of solutions
Although leasing and rental services have been on the market for over a dozen years, their awareness is not very common among entrepreneurs. A study commissioned by EFL shows that 35.5 percent of the surveyed transport companies were interested in leasing or long-term rental services. Another 32 percent of respondents claim to have heard of such a service, although their knowledge is not in-depth. According to 36 percent of respondents, vehicle rental is an attractive solution for a transport company. 44.2 percent of those asked are of the opposite opinion, and one in five has not formed an opinion on the subject. The study also shows that currently, 4.9 percent of transport companies use leasing or long-term rental. Most often, they have a small part of their fleet under lease.
Advantages and disadvantages
Transport companies that evaluate leasing and long-term rental as a good solution for a transport company were able to point out arguments in favor of such a service in the majority of cases (61 percent). The most frequently mentioned advantages included: savings (no need to commit large sums of one’s own capital to have a vehicle, especially important at the start – 7.4 percent), convenience of the solution (flexibility of services and the possibility of use according to ad-hoc needs, urgent orders – 7.2 percent), and comfort of use (using without worrying about service and other matters – was an important argument for 4.4 percent). The study also pointed to the high cost-effectiveness of such an option for a transport company (6.9 percent). Nearly 7 percent evaluate leasing and rental in general as beneficial, provided that attractive parameters and a good price are obtained. When identifying barriers hindering the spread of leasing and long-term rental, representatives of the transport sector mentioned the excessively high cost of fleet outsourcing (32.8 percent). More than 18 percent of respondents indicated that there is no need to use leasing or rental because their fleet is too small. For 8.5 percent of respondents, such a service is unattractive because companies in this group prefer to purchase the vehicle for ownership. Transport companies also indicated concerns about the technical condition of the vehicles.
– A study conducted by EFL on a nationwide sample of carriers shows that representatives of Polish transport companies are cautious about solutions commonly used in Western Europe. Leasing or long-term car rental have a chance to develop, but education and the offering of increasingly better product solutions are necessary. These tasks lie with specialized companies responsible for the products – emphasizes Agata Derlatka, manager of the heavy vehicle market at EFL.
The report “Transport under the microscope” prepared on behalf of EFL, based on research conducted among transport companies by the Keralla Research institute at the turn of June and July 2013. The full text of the report has been made available at www.efl.pl.