Car and van rental spend is increasing rapidly
By Kyle Linsay
Thursday, March 12, 2015 - 12:52
Buys are up
And set to grow further
According to new research a huge rise in the number of fleets using short term rental has been seen in the last 12 months – and a further increase is expected in 2015.
The figures come from the latest quarterly Company Car Trends report from GE Capital, Fleet Services.
Almost two in five fleet decision makers (38%) say that they have spent more on rental in 2014, while a similar figure (41%) expect to do the same in the next 12 months.
The picture is even more pronounced for van fleets, where more than three-quarters of fleet decision makers (76%) report that their rental spend has risen while almost half (48%) believe that they will spend even more in 2015.
Gary Killeen, Managing Director at GE Capital Fleet UK, said: “What we believe we are seeing here is a hangover from the recession. Fleets are facing increasing demand as the economy starts to show signs of improvement. They want to be able to retain the flexibility to hand back a vehicle at any point in time in the eventuality that we see another downturn. It is an understandable attitude.
“Unfortunately it makes little sense from a financial point of view. Daily rental is very much a top-up to your standard fleet needs rather than a long term solution and using it as an ongoing method of fleet provision is very expensive. That flexibility comes at a high price.
“We are starting to see some fleets take a more structured approach to answering the need for further vehicles rather than simply turning to a rental company. We are having conversations with several about the need to manage capacity while maintaining a high degree of flexibility. It is all about helping fleets to forecast and meet demand successfully.”