fleet companies that the cost of hiring cars is likely to rise in
the near future.
Avis said that a combination of a strong Euro, collapsing
residual values for used cars, and rising costs from manufacturers,
against the background of a wider economic slowdown, will “force
all rental suppliers to pass on their increased costs to
customers”.
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Avis fleet director Paul Hainsworth said that costs, which have
risen “considerably” over the past year, look set to rise further
over the rest of this year, and into the next.
“In addition to the credit crunch restricting demand for new
cars, the weakening of the pound sterling against the Euro, the
currency of choice for many manufacturers, is significantly
reducing margins for car makers. They are already increasing their
prices and may look to further restrict supply to the rental
market, which some car makers are already doing,” Hainsworth
commented.
Avis noted that extra costs associated with the introduction of
new VED bands were also likely to be passed on to clients.
Hainsworth summed up: “Avis is committed to keeping its prices
as low as possible, but circumstances beyond our control will
continue to put severe pressure on the entire rental industry.”
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By GlobalData Motor Finance Issue: 42 – April 08
Published for the web: April 23 08 12:12
Last Updated: April 24 08 15:23
