The cost of renting a car is one of the most important parameters in choosing a rental company. The price of renting a car of the same brand in different companies may vary, and sometimes very significantly. Is it possible that the price of the car is different? Why is it sometimes cheaper to rent a car from a local small company or from a private person than from a global rental company? Are there objective reasons for this? Let's figure it out together.
1. Sources of financing
Small rental companies and even more so individual entrepreneurs usually collect a fleet of rental equipment at their own expense. A global network company buys equipment on lease and pays rather large lease payments, which of course are included in the rental price.
2. Rental of offices and garage spaces
A local rental company or entrepreneur has one office or does not have one at all, and the equipment is placed in public parking lots or in their own garages. A global network company pays for the placement of its points at airports, train stations, and large shopping complexes, and this is a rather large cost item.
In a global network company, all cars must have maximum insurance, as this is a requirement of leasing companies, while a local company has an optimal insurance package.
4. Personnel costs.
Global network firms are forced to maintain a huge staff, while small companies and individuals are often a family business or a business of close friends, where you can completely manage on your own.
5. Advertising and promotion
The huge advertising budgets of global network companies undoubtedly affect the final rental price of their cars.
Managers of global network companies are forced to follow strict instructions in their work, which in every way protect only the interests of the company. For example, even minor damage to the car is required to be fixed by the manager and most likely the tenant will pay for it. In the case of a small rental company, the owner of the equipment himself often acts as the manager and he makes his own decision, often turning a blind eye to minor damage to the car.
Global network firms are required to take depreciation charges into account in pricing, which also increases the rental price. Small private companies are more flexible in including depreciation charges in the rental price.
8. Service and maintenance costs
Global network firms are forced to repair and maintain their machines in the services of official dealers where these machines were purchased. They are obliged to do this, including the lease agreement. Local rental companies are more free to choose maintenance services, which also helps them minimize costs and ensure competitive rental prices.