Daily Rental Basics
Sometimes viewed a commodity, the most common mistake when procuring daily rental is simply looking for the lowest price. We show you how to save money and avoid common pitfalls.
When it comes to using a vehicle over a short term, such as finding additional support for when fleet vehicles are unavailable or for employees to travel to an out of town meeting, it is important to look past what most consider the only deciding factor with daily rental; price.
Usage and internal management are the two main areas that should be considered when looking at daily rental. Both can easily incur hidden additional costs which can soon mount up.
In terms of usage, thought should be given to the frequency of hires and the types of vehicles required. Specialist vehicles can often be considerably more expensive to hire due to a lack of available stock resulting in higher demand. Location should also be a consideration, whether this is local, national or even international – both in terms of travel and the areas the vehicles will be hired.
Delivery and collection requirements can also add considerably to daily rental costs. Home and business delivery might not make that much difference to the end user, but it can have a big impact on costs. Home delivery tends to be more expensive as the very nature of the process often requires unattended deliveries, deliveries the day before or out of hours. Business deliveries on the other hand are cheaper and more effective to manage. Money can be saved and management streamlined if business delivery is the default.
The second often overlooked consideration is internal management. Exactly who will be managing the bookings, invoice reconciliation, payment, escalation and queries should be identified and their time accounted for. Setting a rental policy to ensure all staff understand what is expected when renting vehicle for various scenarios is important.
For example, ensuring a vehicle booked that is used for a local meeting is only booked for one day rather than kept for two or more days can make big difference in total expenditure. Multiple bookings can soon become more than just a remedial task.
With these bases covered, there are multiple ways to approach daily rental, matching demand with supply and obtaining the best terms. By using a rental management company like FleetEurope, we can provide one suite of rates and SLA’s against various vehicle categories from a wide range of suppliers.
There are number of advantages to this approach, such as considerable more branches over a national perspective. With more branches and partners come increased supply levels, especially when demand peaks such as with vans on the build up to Christmas. There is the added benefit of a single point of contact for all rental management issues regardless of location, vehicle or supplier, bringing management and billing into one place.
For a high frequency of bookings, a rental management system is vital to place and administer bookings but also offer management tools and reports to help keep those checks and balances in place.
Finally, we advise choosing a supplier you can talk to and can prove quality of service over the telephone, email as well as online/connected services. People forget that rental still requires a physical movement of vehicle to enact a service and sometimes things do go wrong. It is how those situations are managed that shows the true value of daily rental supplier.