Fleet News

Rental price peg dismissed as unrealistic

UNITED Kenning Rental Group has labelled Fleet Cost Management's pledge to peg daily rental prices until March 1997 as unrealistic and potentially damaging to the credibility of the short term rental industry. A fortnight ago FCM pledged to hold its prices for the next ten months (Fleet News June 21); UKRG is one of FCM's key suppliers.

FCM's claim flew in the face of messages coming from the rental industry which predicted rate rises of 10-15% again this year to offset dramatic increases in vehicle holding costs.

Tim Eaves, UKRG's sales director, said pressure on holding costs and margins have led to significant price increases, and this process will continue to balance the relationship between the right product at an equitable price.

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