Fleet News

Daily rental rates rocket by a third

FLEETS are shouldering daily rental rate increases of more than 30% for some models as suppliers keep their promise to put the profit back into their industry. A 'mystery shop' survey conducted by Practical Car & Van Rental shows that rental rates in the UK have surged way above inflation in the past 12 months.

The survey covered 32 randomly selected rental outlets located throughout England and Scotland, monitoring the movement of the standard rates they charged. The figures revealed that rental costs for an average group one car, for example a Vauxhall Corsa, rose by nearly 4% to an average of £146 a week. But drivers taking Ford Mondeo and Vauxhall Vectra-sized vehicles bore the brunt of the increases, with rates rocketing from £195 a week to £258, a rise of 32%.

Month on month, the increase is less marked, as the average weekly rate for a Mondeo or Vectra-sized vehicle was £218 in May. Crash damage waiver charges have also rocketed, to £7 per day from £4.50 per day in July last year, while the average damage excess has jumped from £275 to £380.

Bolton Agnew, managing director of Practical Car & Van Rental, said: 'The adjustment seems to favour corporate customers who would normally rely on their own existing insurance when taking on a hire agreement. It also reflects a recent hike in insurance costs which rental companies are taking the brunt of this year.'

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