In recent months, discussions have emerged within the fleet industry regarding the condition and roadworthiness of vehicle rental fleets.
As a leading vehicle rental management company, Fleetondemand is uniquely positioned to offer insights into this topic, given our extensive experience working with both rental suppliers and customers.
We believe it's crucial to address these industry-wide concerns and provide clarity on the stringent measures we have in place to ensure the safety and quality of rental vehicles.
Resilience in the Vehicle Rental Industry
The vehicle rental industry, like many others, has faced significant challenges in recent years. From the disruptions caused by the COVID-19 pandemic to the subsequent supply chain issues affecting new vehicle production, rental companies have had to adapt to maintain their service levels. Despite these challenges, the industry has shown remarkable resilience and commitment to maintaining high standards.
Joe Howick, Group CEO at Fleetondemand, offers his perspective on the industry's evolution:
"I've observed some significant changes in the rental industry over the years. Whilst we did see some shifts in fleet composition during the 2009 credit crunch, with vehicles reaching higher mileages than usual, today's situation is far different."
"Currently, the rental vehicles we source are typically young and well-maintained. The industry has come a long way since 2009, and we're seeing vehicles that are consistently in excellent condition, often only a few months old and rarely reaching their first service interval. While the BVRLA's recent report shows the average rental car age at 1.3 years, we've observed that most daily rental cars we supply are less than 12 months old."
"We remain committed to ensuring our customers have access to high-quality, safe, and reliable vehicles through our extensive network of vetted suppliers."
The Reality of Vehicle Rental in 2024
To understand the current state of the rental industry, it's essential to look at the data.
The British Vehicle Rental and Leasing Association (BVRLA) has recently published its Vehicle Rental Credentials 2024 report, which offers valuable insights:
- The average rental car is eight years younger than the average privately owned vehicle.
- In our experience, due to flexible rental becoming more popular in recent years, this has contributed to the average rental car age increasing from 1.1 to 1.3 years, and most 'daily rental' cars we supply are less than 12 months in age.
- In comparison, the UK total car parc average age has risen from 7.9 years in 2018 to 9 years in 2023.
These statistics demonstrate that despite recent challenges, the rental industry continues to uphold a modern, well-maintained fleet.
This commitment to fleet quality is further emphasised by a representative from a multinational vehicle rental provider, who notes that:
"Rental allows businesses to access newer, cleaner and well-maintained fleets without the need for large capital investments in vehicles."
Our Commitment to Quality and Safety
As a vehicle rental management specialist, Fleetondemand plays a crucial role in ensuring the quality and safety of the vehicles we offer to our customers. Our processes are designed to maintain high standards across our supplier network:
Fleetondemand’s vehicle rental supplier network comprises of BVRLA members who adhere to the BVRLA code of conduct. This ensures that rental and commercial members are checked to a high standard, as well as making sure organisations have verified their quality objectives.
Fleetondemand’s supplier onboarding process acts as a screening procedure, which is critical for minimising risk and enhancing performance. This includes conducting an evaluation which provides us with an understanding of the organisation’s quality objectives, health and safety protocols and environmental and ethical considerations.
Supplier performance management is key in identifying potential quality issues which enables us to endorse corrective actions early. Key performance indicators give us the metrics to evaluate performance and build a high performing supplier network.
Supplier Perspectives on Vehicle Quality
To provide further insight into the industry's commitment to quality, we reached out to another of our major global strategic rental partners to add another perspective to this discussion by sharing their quality process:
"We have a dedicated team in place centrally and within each individual region to oversee maintenance, servicing and the road legality of all vehicles. We proactively manage communication with manufacturers on recalls and monitor vehicle mileage for service intervals and preventative maintenance."
The vehicle audit generally consists of a comprehensive 25-point vehicle service audit when preparing vehicles, covering both cleanliness and safety aspects. This includes checking tyre tread (minimum 3mm), pressure & condition, horn functionality, and verifying there are no warning lights.
Many of our suppliers work with accredited vendors to carry out servicing and maintenance to ensure vehicles receive professional care throughout their lifecycle.
The Bigger Picture: The Role of Vehicle Rental in the UK Economy
It's important to consider the vital role that vehicle rental plays in the UK's economy and infrastructure:
- 35% of businesses report using vehicle rental to free up cash for other priorities, while 40% say it reduces operational burdens.
- 39% of businesses state that rental helps them manage their grey fleet.
- The use of car rental over private vehicles saves over 25,000 tonnes of CO2 a year.
Rental vehicles support almost all sectors considered to be Critical National Infrastructure (CNI), providing continuity of service during urgent demands or travel disruptions.
Environmental Impact and Sustainability
The rental industry's commitment to maintaining a young fleet not only ensures vehicle quality but also contributes to environmental sustainability. Newer vehicles typically have better fuel efficiency and lower emissions, aligning with the UK's goals for reducing carbon emissions in the transport sector.
The BVRLA report highlights that businesses would need to purchase additional vehicles if rental wasn't an option, potentially leading to higher emissions. SMEs reported they would need an average of seven more vehicles, while large firms would require an average of 54 additional vehicles.
Continuous Improvement and Industry Collaboration
At Fleetondemand, we believe in the importance of continuous improvement and industry collaboration. We regularly participate in industry forums and discussions to share best practices and address emerging challenges. Our commitment to quality extends beyond our own operations to encompass the entire rental ecosystem.
We encourage open dialogue about industry issues and remain dedicated to raising standards across the board. If a customer has any concerns with a rental vehicle, we encourage them to report it to us immediately so that we can resolve the issue promptly and maintain our high standards of service.
Looking Ahead
While challenges can arise in any industry, the vehicle rental sector, including Fleetondemand and our suppliers, maintains a strong commitment to safety, quality, and customer satisfaction.
The data shows that rental vehicles are, on average, significantly younger and better maintained than the general vehicle population.
As we move forward, Fleetondemand will continue to work closely with our suppliers and industry bodies to ensure that we're not just meeting but exceeding expectations for vehicle safety and quality.
Our customers' trust and safety have always been our top priority, and we are committed to providing transparent, reliable, and high-quality rental services.
By fostering open communication, adhering to rigorous standards, and continuously monitoring and improving our processes, we aim to address any concerns and reinforce the rental industry's reputation for providing safe, efficient, and sustainable transportation solutions for businesses and individuals alike.
