A recent conversation about the set monthly fee for one of our cars and how that is not pay-as-you-go, has inspired us to write this here. We know, it’s a new concept (a world first in fact), and with everything new people need to get used to its existence.
So, here we go.
When a car hire firm offers a car for lease it is a car it has brought from a dealer. The purchase cost is recovered by leasing the car to you. The company factors in the cost of the car, the servicing, parts, insurance, registrations, depreciation, and everything else that comes with owning a car. The company then sets its price and offers a monthly fee, usually to cover a 24-48 month period. It adds a bit extra to make a profit and everyone’s happy.
The problem as we see it is that car hire companies, in the UAE at least, don’t discriminate between customers. If you drive 40, 000km a year and require four 10k services you’re paying the same as the person who drives 10, 000km a year and requires one service. If you are that long distance driver that’s great for you.
But we don’t think that’s fair on the other guy,
What we’ve done is keep the monthly fee low. And we’ve given you 1000km free a month. We’ve tested distances and have found that most short-distance drivers (mall – school – office close by) can manage to use less than 1000km a month. So if that’s you, you’re getting a really good deal on the lease of your car. if you go over the 1000km you top up your KMs by phone (we have an app, it’s all very fancy!).
We’re not factoring in the cost of four services a year when we lease you a car. And if someone does indeed take a car and drive 40,000km a year then the funds they have used to top up their KMs pays for their car servicing – that cost is not passed on to you.
We think that’s fair, don’t you?