Knowing the differences between flexible vs traditional leasing is important to be able to make smart business decisions. We explain they key differences so that you can assess whether you are interested in this option for you or your company.
Flexible leasing vs traditional leasing: the main differences in each option
Flexible leasing exists because the contractual commitments of traditional leasing were overly long. And sometimes it is necessary to reduce contract durations because business ecosystems are more complex now than ever before and constantly changing, as are individual needs. This service is offered by specialised companies or financial institutions, but flexibility is a new alternative, by way of a subscription. Below are the main differences of each model, so that you can make the right choice for you:
1. Duration of flexible vs. traditional leasing contracts
Flexible leasing contracts are much shorter than standard leasing contracts: between 3 and 9 months. On the other hand, traditional leasing contracts are rarely less than 12 or 24 months. This is a key detail, as a 24-month lease that is cancelled early will incur a high penalty. Undoubtedly, having the option to lease a vehicle for a few months gives you more peace of mind because unforeseen events are more manageable. Here you will have to strike a balance between the overall cost and the risk assumed.
2. Range of vehicles on offer
The range of vehicles on offer is more diverse with flexible leasing because, in addition to new vehicles, pre-owned cars are also available. As a result, it is easier to find an option more suited to your needs because the OK Mobility fleet provides different solutions. However, in traditional leasing, these vehicles generally come from the dealership. Depending on the context, you may prefer one method over another.
With OK Mobility, you can access a wide range of possibilities: cars, motorbikes and vans. In practical terms, this means it is much easier to find the right vehicle. Therefore, it is a good option if you are looking for versatility, in case you need to change cars or vehicle types.
3. Services included in the lease
The services included in flexible leasing are similar to those of traditional leasing. Insurance, maintenance, roadside assistance and taxes are all included. All you have to worry about is fuel or recharging, whichever the case may be, which makes the difference. This is an advantage of flexible leasing, because no coverage is lost compared with traditional leasing.
4. Monthly lease payments
The monthly lease payment is usually somewhat higher in a flexible contract than in a traditional one. However, if you work with companies specialised in this service, the difference can be minimal. In addition, the difference in the monthly instalments is compensated by the possibility of terminating the contract earlier without the penalties that are part of traditional leasing.
When might flexible leasing be interesting to me?
There are several reasons why flexible leasing may be of interest to you. Here we tell you which are the most relevant, depending on the type of company or your personal circumstances:
- Startups: Startups often face uncertain futures and sometimes it is better to go for shorter contracts. This option avoids a long-term financial burden that could jeopardise the company’s future. For small start-up businesses, this is key.
- Occasional needs: Companies may have a fixed fleet of vehicles, but, at some point, they need an extra driver or vehicle. Flexible leasing makes it possible to cover this need during peaks of activity (Christmas and summer campaigns, etc.) without having to sign long-term contracts. It is also a good option for holidays.
- Waiting to buy a vehicle: If you are waiting to buy a car during the negotiation period, this might interest you. Why? A 3-month contract covers the time you spend comparing and negotiating. Undoubtedly, this is a much better option than traditional leasing in this regard, both for companies and individuals.
- Fleet renewal: This is another point in favour of this option. With a fixed lease you have to keep the same car for at least 12 months. On the other hand, with flexible leasing, you can keep it for just 3 months, with the option of continuous renewal.
As you can see, there are many points in favour of flexible leasing. And the best part is that it can be enjoyed by both companies and individuals.
Opt for flexibility!
Learning the differences between flexible and traditional leasing is important for you to know which is the best option. At OK Mobility, we have a diverse fleet for you to lease flexibly or go down the traditional leasing route, according to your needs. Get in touch and we will advise you!
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