Rental shortage provides opportunity for dealers to move into short term hire
May 17, 2010 Comments (0)
The current shortage in daily rental provision is providing an ideal window of opportunity for franchise dealers to move into short term hire, believes motor industry consultancy Network Automotive. The company says that offering the service will potentially provide dealers with a new revenue stream along with a range of other benefits such as a steady supply of used stock and the ability to offer customers extended vehicle trials.
Managing director Colin Bruder said: The rental sector has undoubtedly had a tough couple of years but it is now being widely reported that business from both fleet and retail customers is gradually picking up, leading to an ongoing shortage in rental provision that is likely to last into the medium term future. This does provide a window of opportunity for dealers to move into the daily rental market. Dealer based rental is something that has contracted considerably during the recession but our feeling is that this could now be the time for dealers to reconsider. After all, rental can provide a very worthwhile revenue stream.
Bruder said that franchise dealers had strong foundations for a good daily rental business already in place - a ready-made potential customer base, the credibility of being attached to a manufacturer, convenient premises, and facilities for storing and cleaning cars but that a determined approach was needed. "Where many dealers go wrong is that they think a daily rental business can be just to boost utilisation of their existing courtesy car fleet, he said. This never works because the needs of the renter and the dealership don't coincide. Instead, profitable dealer daily rental operations are usually run almost as independent businesses, with their own vehicles, their own desk in the dealership, dedicated staff, and their own phone number. Only by doing this can a real focus on customer needs be achieved and success found."
Bruder explained that Network had longstanding experience in providing a wide range of franchise dealer support services for daily rental businesses. "We help dealers and manufacturers to put an infrastructure in place and maintain it, something we have been doing in daily rental for more than 25 years, he said. That means everything from providing rental agreements, specialist stationery forms to training, promotional materials and operational advice."
About Network Automotive
Network Automotive Management Ltd is based in Bedfordshire and provides people and programmes, consultancy and support services to motor manufacturers, franchise dealers and vehicle rental companies operating in the fleet sector. The company is a sister company to Forester Grant Associates Ltd, a specialist in consultancy services for vehicle aftersales and APA Selection, a motor industry headhunting and recruitment company.