When a London business needs a car for more than a few days, two options usually come up: monthly car hire and a lease. Both put a car at your team's disposal. They suit very different needs, and choosing the wrong one can tie a business into a commitment it doesn't need, or leave it paying more than it should for flexibility it never uses.
Here's how the two compare, and how to decide.
What monthly hire is
Monthly hire is a hire that runs for weeks or months rather than days. At R3ntal Central, there's no minimum hire, and daily, weekly and monthly rates are available. You book the dates you need, sign the hire agreement online and collect the car. Insurance is included in the hire for drivers over 25.
When the hire ends, you return the car. If you need it longer, you request an extension through your account.
What leasing is
A lease is a longer agreement, usually over years, for a specific car. You pay monthly for the term, and at the end you return the car or move to a new agreement. Insurance is usually arranged separately, and ending a lease early is usually limited by the contract.
The questions that decide it
How sure are you about the end date?
If you know the car is needed for a project, a secondment or a visiting colleague's stay, and the end date may move, hire suits you. You book what you know and extend if plans change.
If the need is permanent, such as a car a member of staff will drive every day for years, a lease may be worth considering.
Will the need change?
Businesses change. A team grows, a project ends, a contract is won or lost. Hire lets you match cars to the work in front of you: two cars this month, one next month, none the month after. A lease fixes the number and the car for its term.
Does the car need to suit different jobs?
With hire, you can choose a saloon for client visits one month and an SUV for a site project the next. A lease is one car for the whole term.
Who handles the paperwork?
With hire, your bookings, charges, payments and documents sit in one account. Business accounts are invoice-based, with their own rate card agreed when the account is set up. That suits a finance team that wants every hire in one place.
A side-by-side view
| Monthly hire | A lease | |
|---|---|---|
| Typical length | Days to months | Usually years |
| Minimum term | No minimum hire | Set by the lease |
| Insurance | Included for drivers over 25 | Usually arranged separately |
| Changing your plans | Request a change or extension | Usually limited by the contract |
| Choice of car | Different car each hire | One car for the term |
When monthly hire is the better fit
- Projects with an end date, such as a site team in London for three months.
- Visiting staff and directors, in London for weeks rather than years.
- Cover while a company car is off the road.
- Testing a need before committing to anything longer.
- Seasonal peaks, when the business needs more cars for a while.
When a lease may be the better fit
- A car one person will drive every day for years.
- A business that wants the same car on a fixed cost for a long term and is confident the need won't change.
How R3ntal Central handles monthly hire for businesses
Every hire comes with a customer experience manager and our support line, open from 8am to 8pm, so your team always knows who to call. At collection and return, the car is inspected with the driver and photographed, and a hire can't be closed without both inspections. As a Syndicar agency, we can offer a client portal where every booking, charge and document sits in one place, and where drivers can request an extension.
If you'd like to talk through what suits your business, open a business account and we'll call you back. Or read more about business car hire and weekly and monthly hire.