Why Long Term Rental? 8 Benefits

20^th April '20

The famous oil baron Paul Getty said, “If it appreciates, buy it. If it depreciates, lease it.”.  Wise words to live by in the modern age. 

According to Reuters.com, in 2017 82.6% of new cars sales were purchased on a rental basis, with the majority using a PCP (Personal Contract Plan) to do so.  We're all familiar with the benefits of this model, we get a new car, enjoy it for 3 years, all servicing is taken care of and then at the end of the contract term we swap it for a new model.  

Long-Term Rental 

Long-Term Rental offers the same flexibility we enjoy with car rentals: new equipment, a fixed monthly cost and maintenance included. 

As we navigate the uncharted landscape that COVID-19 has presented, it’s imperative to find new ways to continue businesses operations. 

While refrigeration is business critical it's also a high cost, depreciating asset with vital, costly maintenance programmes. 

Retailers and food and beverage businesses alike are swapping to Lowe's fully managed Long-Term Rental plans as they allow the cost of equipment to be spread over fixed weekly, monthly or annual payments. 

This provides businesses with the opportunity to focus on the core business offering with the combined peace of mind that all maintenance is taken care of by the experts at Lowe. 

8 Benefits of Long-Term Rental: 

• Avoid large upfront capital expenditure 
• Avail of the new IFRS16 (Jan 2019) accounting code 

• Have better control over cash flow, due to fixed payments 
• Place new refrigeration technologies in store at the start of every contract 
• Boost flexibility around their assets in store 
• Reduce the time spent on fleet management, i.e. logistics, maintenance etc 
• Reduce running costs due to the energy efficiencies that come with new equipment 

• Reduce GWP & carbon footprint 

Current circumstances are forcing businesses market to re-think their approach to corporate expenditure. Long-Term Rental allows flexibility in the face of uncertainty, removes the hassle and risk associated with managing a fleet of refrigeration and provides businesses with a cost-effective solution to continue with business operations. 

How the Long-Term Rental process works: 

1. Discovery 

A member of the Lowe retail team will run a discovery phase uncovering all aspects of your requirements. 

2. Sourcing 

Lowe’s technical experts will then engage and source solutions from a large pool of manufacturers. 

3. Rental Plan 

Lowe's retail department will shape up a rental plan in both length and terms that supports your goals. 

4. Implementation 

The Operation and Installation teams now take over, rolling out and maintaining your rental equipment. 

5. Renewal 

At the end of the plan Lowe's Operations team return, remove your old equipment and replace it with newly sourced equipment. 

Interested in how these benefits could be applied to your business? Read more on Long-Term Rental or contact a member of the team.