RENTAL companies will not enter a price war with new cut-price operator easyRentacar, although the news that it will run Mercedes-Benz A-classes exclusively has caused concern. EasyRentacar, operated by low cost airline EasyJet, is promising to undercut big name rivals on launch in April with rates from £9 a day.

Bookings to the no-frills firm can only be made via the internet. Mercedes-Benz won the solus supply deal against Peugeot, Citroen and Ford and will supply 4,000 A-classes at airports in Europe. The first sites will be in the south of England and one in Scotland, which will be open within the next two months. Eventually 2,000 A-classes will be available from main airports across the UK.

Rental companies have dismissed the impact the venture will have on their business. Hertz and Thrifty Car Rental believe the promised £9 rental does not take into account costs such as insurance and because the vehicles are on buy-back, it is likely there will be mileage restrictions in the contracts.