Medium term rental can provide car dealers with the opportunity to double their sales, according to Meridian Vehicle Solutions.
The rental company says that while lead times on new cars remain long, dealers can offer the customer a rental vehicle to bridge the gap. This vehicle can also be supplied by the dealer.
Phil Jerome, managing director of Meridian, said: “Many franchise dealers have long waiting times for some models but others are available for immediate delivery.
“What doubling means is that they can give customers who face a long wait for their new vehicle the option of taking another new car on medium term rental to fill the gap. We can then act as the funder and overall provider of that rented vehicle.
“The dealer has effectively sold two cars for one sale and, in some cases, they also buy back the rental car from us to put into their used approved programme. It is a very effective way of generating sales and stock while meeting customer needs.”
Meridian can help dealers by providing pricing and promotional material so that medium term rental could be integrated into the new car sales process.
“Dealers know that they are currently facing long delivery times for many popular models and medium term rental is a way of meeting the customer’s need for a vehicle, heading off a weakness in their sales proposition by providing a cost-effective solution.
“While this is an element of our business that is in its infancy, interest from franchise dealers of all kind has been immediate. They can see the many benefits doubling brings,” Jerome added.
- For views and insights into how motor retail will adapt to new technologies and consumer behaviour come to the Automotive Retail Congress on May 21. Click here for more details.