The worldwide credit crunch has put a financial strain on most companies and homeowners, but there is one business that has managed to turn a negative into a positive by taking advantage of the market.
National Car Rental is preparing for what it dubs a period of “sustained growth”. The company is actually looking for “double digit growth in its van and minibus rental” in spite of economic fears. According to the company’s national sales director, Lorraine Farnon, the credit crunch has actually assisted the rental business with fewer people willing to commit to longer term leasing contracts or car loans.
“This is where rental has fared very well,” she said. “People don’t want to commit to long-term contracts and rental gives them that flexibility.”
Where problems have arisen however, is with the rising cost of acquiring cars from manufacturers. This has placed increased pressure on rental companies to be efficient with their fleets and this has coincided with a rise in consumer demand for green cars.
Farnon continued: “A year ago I’d have said absolutely, customers are asking but the reality of the cost meant there wasn’t a lot of take-up. It’s still small but we’re seeing more enquiries turning into rentals.”
National Car Rental already boasts the Toyota Prius among its fleet and is discussing the possibility of adding Volkswagen’s BlueMotion range in the future.
