Last Updated: 07/01/2010
Rentals rise in tough times
Flexible van and truck rental products are proving to be a hit during the recession as businesses aim to minimise risk, according to TLS Vehicle Rental. The GE-owned rental specialist says that flexible products that allow fleets to hire a vehicle from one to three years with unlimited mileage and no early termination fee are increasingly popular.“During the recession, we have seen a fall off in traditional daily rental in line with overall reduced activity throughout the economy,” says Simon Cook, sales director.
“However the slack has largely been taken up with flexible rental, which we believe is proving to be the recessionary acquisition method of choice for many businesses.”
With businesses finding it difficult to forecast their van and truck needs, products such as the flexible Advantage package allowed fleets a much higher degree of freedom than other acquisition methods, such as buying or leasing. It also allows businesses to sidestep potentially problematic areas such as future residual values while conserving cash.
“More than anything, businesses are still worried about cash flow. They know that it is poor cash flow that kills most companies during tough economic times,” says Mr Cook.
“What flexible rental allows them to do is take on the van or truck that they need without any of the long term commitment of buying or leasing. The vehicle essentially becomes part of their fleet, but the moment the need for it ends, they can hand it back without penalty. For many businesses, that is a proposition that makes a lot of sense at the moment.”
An additional benefit of flexible rental is that some of the most time consuming aspects of day—to-day fleet management can be handled by the rental company.
“For example, Advantage provides roadside assistance as part of the package together with a relief vehicle whenever one is needed,” says Mr Cook.
“Having these issues taken care of by the rental company means that the customer can concentrate on their core business.”
