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Short-term and public sector rental on the rise

Date: 20 June 2013   |   Author: Jack Carfrae

Demand for short-term rentals is on the increase according to the rental arm of leasing firm Grosvenor Contracts. The firm reported a 38% increase in such business from the corporate sector since the start of the year and is putting it down to cautious businesses that don't want to commit to larger, longer-term fleets.

Head of Grosvenor Rental Management Alison Mead said: "Short-term rentals are being increasingly used by companies to build flexibility into their fleet size.

"It means they can quickly increase and decrease the number of vehicles they operate without having to worry about termination costs or expensive depreciation.

"We're also seeing a rise in the number of companies booking car-derived vans on short-term leases and there was an influx of requests for off-road vehicles during the snow."

This comes as rental giant Enterprise reported a spike in public sector rental. It described a "significant increase" (circa 30%) in business from local authorities, central Government and health trusts, following its partnership with Government Procurement Services.

The firm's head of public sector, Oz Choudri, said: "Public sector bodies are using cars in a variety of ways - by the hour, by the day or for longer periods of a month or more - to provide flexibility and convenience for employees while increasing compliance and cost efficiencies for organisations.

"It's helping to change some entrenched behaviours, such as mileage reimbursement."



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