Arval UK has opened up used vehicle leasing to fleet customers, the latest lessor to tap the used segment amid lukewarm new car registrations and resilient second-hand values.
The “Re-Lease” scheme promises savings of up to 20% compared to a models’ factory-new equivalent. Cars that are “too good to go to auction”, clocking under 30,000 miles and less than 30 months old, can be leased for 12 or 24 months with immediate delivery. Mileage allowances can be between 5,000 and 25,000 miles per annum.
A spokesperson told Leasing Life and Motor Finance that most of the vehicles currently available are ex-fleet, but future stock may include former PCH and BCH cars.
Elliott Woodhead, deputy managing director at Arval UK, said: “Not very long ago, a two or three-year old lease vehicle tended to show signs of that use. Now, improved durability means that a properly maintained vehicle is, in many ways, difficult to differentiate from a new one.
He said the scheme was driven by “what’s in stock at any given point in time”, and added that the second-hand offer was more likely to attract smaller business customers rather than big corporate ones who might require specific features in vehicles.
“It is difficult to see used leasing becoming part of normal acquisition policy for major fleets – there just isn’t enough consistency to create a structured choice list. But for smaller businesses or individuals, it can be the perfect option … The short lead times attached to the product are also really attractive.”
Arval is the latest multinational lessor in Europe to to tap second-hand assets for use in fleets, as resilient values for ex-fleet vehicles are providing a palatable way to offset slowing new car business without having to through dealer-targeted auctions. A representative for Arval UK declined to say whether Arval’s move was driven by residual value rationales.
Last week, Arval rival Alphabet started piloting second-hand corporate leasing in Belgium.