Fleet News

Equality means price rises for all, say the BVRLA

Banning any form of age discrimination in the vehicle rental industry could cost the sector more than £34m per year and add up to 30% to the price of hiring a car or van, according to the BVRLA.

It wants the industry to be exempted from the government's proposed age discrimination legislation because regulation in this area is not required and would introduce a huge administrative and cost burden on its members.

Statistics show that young and inexperienced drivers, particularly males, are much more likely to have accidents and it costs more to insure them. Despite serious safety concerns about these drivers gaining access to a range of high-powered cars, vans and minibuses, a significant number of rental companies do rent to people under 21.

The government has agreed that it is justifiable to charge higher prices, deposits and excesses to people in this age group. However, the BVRLA claims new legislation would present rental companies with the on-going burden of having to provide statistics to justify these charges, which could be challenged in court.

It feels that the industry would also face extra administrative costs involved with insurance claims and vehicle repairs, which would end up increasing the price of vehicle rental for all customers.

"Older and younger drivers are already able to hire vehicles and the government accepts that some younger or experienced customers should be charged more," said BVRLA chief executive John Lewis.

"But our industry is still being threatened by this new tranche of pointless red tape, something the current government has sworn to eliminate.

"Costs for our vehicle rental companies and their customers will rise and no-one will benefit - where is the logic in that?"
 


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