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The number of fleets using short-term rental vehicles has risen, and is expected to increase again in 2015, according to top 10 leasing company GE Capital.
Research from the firm's quarterly Company Car Trends report, showed that 38% of fleet decision makers said they spent more on rental in 2014 than in previous years, while 41% said they are expecting that trend to continue this year.
More than three quarters (76%) of van fleet managers said their rental spend has risen in 2014, while 48% believe they will spend more in 2015.
"What we believe we are seeing here is a hangover from the recession. Fleets are facing increasing demand as the economy starts to show signs of improvement," said Gary Killeen, managing director of GE Capital UK. "Fleets want to be able to retain the flexibility to hand back a vehicle at any point in time in the eventuality that we see another downturn. It is an understandable attitude."
"Unfortunately it makes little sense from a financial point of view. Daily rental is very much a top-up to your standard fleet needs rather than a long term solution and using it as an ongoing method of fleet provision is very expensive. That flexibility comes at a high price."
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