Breaking the Chains Off of Long Term Leasing Contracts
12 October, 2016: Carlease Rent a Car has introduced a one-of-a-kind platform for customers who want to end their long term lease contracts without incurring exorbitant early termination penalties. By doing so, Carlease is providing its customers with the cost advantage of long-term leases, with the flexibility of a short term rental. The Lease Exchange (www.carleaseexchange.ae) puts every long-term lease customer in control of their leasing journey by connecting them to potential lessors who can take up the lease, thereby saving them the cost of the early termination penalty. This is the first service of its kind in the UAE and is available exclusively to Carlease corporate and retail customers.
A commonly heard complaint among long term lease customers is the distress caused by early termination penalties on their long term leasing contract, which can range from anywhere between two and six months of the total monthly lease cost – in most cases over AED 3,000 based on the market rate for an entry-level sedan. Customers prefer the cost advantage provided by long term leases; however in an expat-driven ecosystem where stability can sometimes be difficult to achieve, they have expressed the burden they feel when they have to pay early termination penalties on top of the cost of moving back to their home country.
Acknowledging this concern, Carlease devised a simple and elegant solution. The Lease Exchange platform allows existing lease customers to exit their contract before the end of its tenure without paying a penalty, by offering the remainder of the lease period to other potential lessors. The original customer gets to avoid the early termination penalty and instead pay a fee for a fraction of the cost, and the acquirer of the remaining lease period gets the attractive price offered by long term leasing contracts, with the flexibility of a shorter contract.
“At Carlease, we always try to recognize our customers’ need for flexibility and we work hard to develop innovative solutions that meet their requirements in interesting ways,” says Aswini Borkotoky, Carlease Managing Director.
Carlease customers can go to www.carleaseexchange.ae on their desktop or their mobile phone and create a listing of their current car and contract terms on the platform, which is visible to new customers seeking a deal, or those looking for flexibility in a contract. Once the terms are agreed between the customer and the acquirer, the new customer simply takes over the lease.
“Innovation and customer-centricity is in our DNA. We have demonstrated this before through our
portfolio of 70+ different models of cars, and with the introduction of 6-month mini-leases. The Lease Exchange is simply the latest example of Carlease’ tradition of pioneering in the market, and focusing on customer service,” says Mr. Borkotoky.
Long leases are popular with car rental customers for many reasons – it gives them a fully-serviced car without the hassle of maintenance and other costs of ownership, and at very favorable price points. Long-lease customers also receive beneficial contract terms and often receive brand new vehicles. These are the advantages passed on to the acquirer of an existing lease through the Lease Exchange platform.
The Carlease Lease Exchange is available at www.carleaseexchange.ae.
About Carlease Rent a Car LLC
Carlease is one of the fastest growing automotive companies in the UAE, with over 1300 cars and locations in 5 of Dubai’s key business hubs. Carlease services individuals and corporates throughout the UAE, offering short and long term contracts, event transportation and total fleet management services. We provide cars for people that love to drive them, with a focus on care, efficiency, and sustained satisfaction. We pride ourselves on our service quality and the variety of our fleet, and are firmly committed to our core principles: value, variety and service. Carlease is a member of the Canadian Business Council and has been nominated as a Finalist at the MEED-Gulf Capital SME awards in 2015 and 2016, most recently being nominated in the Small Business of the Year, Entrepreneur of the Year and the Customer Focus Award categories.
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