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Rental rate hike predicted

Date: 10 July 2008   |   Author: Tristan Young

Daily rental prices will rise in the next 12 months, adding to the fleet manager's costs burden, according to Enterprise UK boss Don Moore.

Moore, vice president of sales UK and Ireland, believed the rising cost of running cars and the overall economic climate would mean a rental rates rise.

"We haven't seen car rental prices go up recently, but costs have to increase. Yes, people have been saying that for a year or more, but there are other factors now, RVs for instance."

Enterprise, which was voted best daily rental company in this year's BusinessCar Awards, buys rather than leases its vehicles from car makers, which it thinks will help shield it from any increases in the future.

"Buying cars, rather than leasing, means we can just keep cars for longer," said Moore.

Despite the economic downturn and predicted rental rates increase, Moore expects Enterprise's business to grow. The firm's policy of collecting the renter then returning to a branch to carry out the vehicle hand-over means Enterprise experiences fewer disputes over vehicle damage and fuel charges.

Moore also claimed the size of Enterprise's network, 325 outlets, means the fuel cost of travelling to a branch is lower. This number of outlets means 25% of the UK's population is within one mile of a branch, 75% are within five miles and 90% are within 10 miles.