Supplier stability is set to be the key issue in the van and truck rental market during 2009, according to TLS Vehicle Rental.
The GE-owned commercial vehicle rental specialist says that recessionary pressures mean that many commercial vehicle operators may be tempted to cut corners in areas such as maintenance and vehicle compliance.
Carl D’Ammassa, chief executive officer at TLS, said: “Operators of commercial vehicles and daily rental companies are currently under a huge amount of pressure from rising costs, falling residual values and depressed markets. Many daily rental companies are fighting for for survival and rates are highly competitive right now.
“Against this backdrop, we are aware of a number of daily rental companies offering very low rates that raise questions over their ability to survive long term in the market.”
D’Ammassa added that the situation was leaving customers wary and confused, with many aware that supplier stability could be under question.
He explained: “Customers are not stupid. If they are offered a daily rental rate that is simply too good to be true, they immediately start to ask questions about that supplier and whether they have a long term future.
“Customers are also intelligent enough to recognise when a rental rate is so low that maintenance and compliance issues are likely to be falling down the list of priorities, and to steer clear of those suppliers.
“More than ever it is important to choice the right partner for your commercial vehicle provision.”
D’Ammassa added that the reassurance of being supported by the financial stability of parent company GE, with its recently reconfirmed AAA credit rating, was helping TLS to retain and win new business as the recession starts to bite.
He said: “Our rates are competitive whilst being backed up with very high levels of compliance, maintenance and customer service. Our Customers applaud our service standards and those who are looking for a partner to work with them during the recession recognise the advantages of flexible rental and our approach.
“They know that, in the final analysis, our stability and high compliance standards drive down the total cost of operating commercial vehicles in the long term.”