Company car fleets increasingly transitioning to short-term leases, Liquid Fleet finds

Liquid Fleet said that companies are looking to free up capital and ensure flexibility.

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Liquid Fleet has found that corporates are transitioning their company car fleets to short-term leases of six, nine and 12 months.

Liquid Fleet said that companies are looking to free up capital and ensure flexibility.

Short-term leases are also being used for employees on probationary contracts, or for pool car fleets to keep grey fleet drivers mobile.

Liquid Fleet found that plug-in hybrids (PHEVs) were most popular among short-term leasing customers, especially longer-range models with larger batteries.

James Miller (pictured), sales and marketing director at Liquid Fleet, said: “Many corporates we speak to want to keep their vehicles off their balance sheet to free up working capital while maintaining flexibility to cope with the current variable trading conditions.

“They want to be able to respond to a rise or fall in company revenues as they juggle coping with the modest economic growth predictions for 2026.

“Short term leasing gives companies that flexibility without the need for an initial deposit whilst avoiding a depreciation risk.

“The company’s only responsibility is to ensure drivers get their vehicles serviced in line with manufacturer guidelines.

“We have ordered several hundred of the latest new PHEV cars with a longer electric range as corporates clearly want to reduce emissions across their business but are still getting their heads around the electric vehicle (EV) workplace and public charging infrastructure.

“Therefore, the new longer-range PHEVs are providing a useful half-way house to moving to full EVs, whilst keeping drivers’ Benefit-in-Kind (BiK) tax in check.”