Industry Analysis & Industry Trends
The Car Rental and Leasing industry struggled as the UK economy floundered in the two years through 2009-10, but responded with a surge in subsequent years. Revenue reached a trough in 2009-10 after the industry was forced to deal with declining international tourist numbers and weaker corporate leasing demand. These factors contributed to lower vehicle leasing and rental levels and therefore exerted downward pressure on industry revenue and profitability. However, since 2010-11, strong demand from businesses for vehicle leasing and growing demand from tourists have driven revenue back up above pre-recessionary levels, although the industry did struggle once more in 2012-13 as the economy faltered. A more buoyant economy is expected to drive industry revenue growth of 3.9% in 2014-15... 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. Until recently, low interest rates and a robust economy meant industry participants had relatively flexible funding options. However, with the onset of the UK recession and more stringent lending criteria, it has become 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