Rental periods are increasing, says TLS Vehicle Rental

Van rental: flexibility proving popular

Recession pushing up length of rental period

The average length of van and truck rental is going up growing during the recession, according to TLS Vehicle Rental.

Carl D’Ammassa, chief executive of the GE-owned commercial vehicle rental operator, says businesses are turning to rental because it offers more flexibility than outright purchase or leasing.

“The average rental length has increased during the past year and requests for quotes are 25% up.

“There are all kinds of factors making rental attractive at the moment. Businesses that would normally lease may be uncomfortable entering into new three or four-year agreements; those that would normally buy may want to hang on to their money to preserve cash flow; others may simply no longer have the lines of credit available to lease or buy.”

Rental circumvents these issues, he says. “If you need a van or truck, we can have one with you as soon as you can get to a depot or delivery can be arranged. You can then keep that vehicle for as long as you need it and hand it back the moment you don’t.”

D’Ammassa said rental rates remained highly competitive. “Most rental companies are seeing upward pressure on rates. But most are managing to minimise any increases and the customer is benefiting. Commercial vehicle rental rates in general are, we believe, something of a bargain at the moment.”

As the recession bites, businesses are extending van rental periods

Like other highly flexible business models such as using supply staff and serviced office space, commercial vehicle rental was very much a product that fitted in with recessionary thinking, D’Ammassa said.

As the recession bites, businesses are extending van rental periods

“Some experts say that we could be out of recession later this year while others believe that we are entering a depression that could last a decade. Against this backdrop, businesses find it difficult to plan with any degree of certainty. Rental allows them to stay flexible.”

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