Smaller franchises often have unrealised opportunities to start successful rental operations within their dealer network.
So says motor industry support services specialist Network Automotive, which has a successful record in manufacturer dealer based rental initiatives stretching back more than a quarter of a century.
The company currently manages and has designed dealer based rental programmes on behalf of several manufacturers and says that those it operates for smaller franchises are often just as successful as larger ones.
Managing director Colin Bruder explained: “Most smaller manufacturers usually exploit a niche effectively - and that same niche often exists in the rental market as it does in the new and used car markets.
“For example, sports car specialists, LCV specialists and 4×4 specialists can all, in our experience, exploit rental markets successfully. It is a question of adopting the right approach and developing the right expertise.”
Bruder said that these franchises were often able to offer rental opportunities in markets that were ignored or neglected by major dedicated rental operations.
He said: “If you pull up outside most rental company premises, you will generally see large numbers of group A and B cars. They are not usually geared up for vehicles that fall outside of the mainstream.
“So, if you can offer an alternative - and 4×4s are a good example - then there is every possibility that you will be able to develop a profitable rental business from your dealership premises.”
Bruder added that Network has extensive experience of helping standalone dealers, dealer networks and manufacturers develop the expertise needed to run a success rental operation.
He added: “The successful dealer rental outlets that we see are the ones that are run with the same level of management and dedication as any standalone business. You must have the necessary knowledge and commitment.
“We are able to help dealers and their manufacturers gain the expertise they need from initial viability studies to training and from marketing to practical day-to-day help including business plans, and all the administrative documentation.”
