Corporate renters have been warned they will face increasing daily rental rates for the next two years at least.
Experts at Avis UK car hire have been analysing market data and found that rates had increased by between 5-10% over the past two years and will steadily increase throughout 2011 and into 2012.
Commercial Director Antony Ainsworth said:
“We found that the market as a whole has moved rates up as a consequence of rising input costs and a greater focus on the segments they serve. There is an element of starting to charge more realistic daily rates so we can maintain investment in the levels of service customers expect.”
ING Rentals concurred with the findings of Avis saying that they had found an increase in holding costs had added around 2% onto costs however sourcing costs saw an increase of up to 8% on automatic vehicles and an all around 5% increase on van hire. ING also revealed that the models that they have had the most difficulty sourcing were Ford Mondeos and Vauxhall Insignias.
Short term rental is a good option if you are wanting something for a few days, however for any long period of time you might be better off looking at contract hire deals, with this type of deal you can choose your vehicle rather than just a band or range. Contract hire deals also offer a degree of flexibility and can include servicing and repair costs.
As a business owner you are also entitled to claim back as much as 50% VAT back on the vehicles. Contract hire deals can also be broken down to a per mile cost,meaning that you know exactly how much you’re paying, this is especially handy if you are running a fleet of vehicles. For example the most popular rental brand currently on the market is Audi, a brand new Audi A4 could cost you as little as £125 per month if you are covering 10,000 miles or less. Obviously this is based on an economical driving style.
Source – Business Car