Daily rental is a short term leasing option for fleets, and can offer fleets a rental package without the long time financial commitment that comes with contract hire.
Why choose daily rental?
The main reason is a reluctance to make long-term financial commitments via outright purchase or contract hire during the economic uncertainty.
Daily rental can offer greater flexibility and can be seen as a good option for new starters and replacements for pool cars.
It helps fleets avoid long-term financial commitments and early termination charges, as well as having depreciating assets on the balance sheet. And they can change the make-up of the fleet at any time.
Many fleets are now looking towards daily rental instead of committing to a longer term contract hire agreement, the biggest disadvantage is that daily rental will in most cases work out more expensive in the long run and will not carry some of the perks available with longer contracts.