Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Winning Enterprise predicts rental price rises
Cookies on Businesscar

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time

BusinessCar magazine website email Awards mobile

The start point for the best source of fleet information

Winning Enterprise predicts rental price rises

Date: 25 February 2009   |   Author: Tristan Young

Enterprise Rent A Car boss Don Moore has predicted a rise in rental costs this year due to the recession seeing car makers cut back on vehicle production.

Speaking at the collection of the BusinessCar Award from Editor Tristan Young for best rental firm 2009, Moore (pictured right), said: "The numbers of cars going to daily rental by manufacturers means vehicle prices for us will go up. Because there's more margin in retail, that's where they will put any money."

However, Enterprise believes its policy of buying cars from car makers, rather than leasing them with a guaranteed buy-back price, has put them in a strong position for 2009.

"We took the hit last year [on residual values] but have retained greater flexibility. Those doing buy-backs didn't have the risk, but they have no flexibility either."

This flexibility means Enterprise can hold onto cars for longer if fewer vehicles are available or demand suddenly increases.

"98% of our fleet is purchased - we're the only rental firm who does that. We don't sell through auctions, but direct to the market. We have 40 employees who sell our cars in regions to approved buyers.

"Each seller has about 25 buyers and they sell small numbers of cars to these people," said Moore.