Industry Analysis & Industry Trends
The Car Rental and Leasing industry struggled prior to and during the economic downturn. However, a number of factors have driven an acceleration in industry growth in subsequent years. Since 2010-11 improving economic conditions have prompted rising demand from businesses for vehicle leasing and from tourists for car rentals. This has driven strong revenue growth over much of the past five years, although the industry did struggle in 2012-13 as the economy faltered. Revenue is estimated to grow at a more modest rate of 3.5% in 2015-16, as stagnant global economic conditions are anticipated to weaken business confidence and tourism levels, while growth in the real effective exchange rate impedes growth.
Industry revenue is estimated to rise at a compound annual rate of 5.5%... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entering this industry are moderate, although capital is needed to acquire vehicles. Low interest rates and a robust economy have meant industry participants have enjoyed relatively flexible funding options in recent years. However, toward the start of the period, more stringent lending criteria as a result of the economic downturn, made it more difficult for new firms to access credit for vehicle purchases.
It is cheaper for companies to acquire used vehicles than to buy new ones. However, to join the British Vehicle Rental and Leasing Association, which provides creditability and support to members, members must purchase new cars and replace them after 60,000 miles... purchase to read more