Saturday 21 April 2018

Rentals play key role in tourism and motor businesses

THE rental market can mean as many as 15,000 new cars are registered each year. It is also a substantial driver of the commercial/van sector.

In doing so it is an area, often overlooked, that makes a significant contribution to the tourism and motoring industries – and in the case of commercials, to the broader business economy.

As far as motoring is concerned, sales to and deals with car rental companies can account for a substantial percentage of overall registrations for some brands here. It helps them maintain market share.

They help the wider motor business because these cars need maintenance and repairs etc over the course of their relatively short lives as rentals. And then, when they come back to dealers after the tourist season (September onwards), they have traditionally been a source of 'nearly new' or 'newsed' car deals for buyers at the back end of the year.

However, now that we have two registration periods each year buyers need to ask themselves some tough questions these days.

Up to last year, the question was simple: should you buy a 'newsed' rental or wait until January for a brand new one?

It all had to do with money really. If there was a big cash saving on the price of the car new and the recent rental (and mileage was low) then you could see how you would be tempted. But you should most definitely factor in elements such as:

{HTML_BULLET} How close is the cash price of the new car (allowing for 10pc discount) to the asking price for the 'newsed'. It may not be as large as you think.

{HTML_BULLET} It will be a two-owner motor if you buy and that will have an impact on its value when you come to trade in.

{HTML_BULLET} January may bring a revised version of the car.

{HTML_BULLET} It will be a year old in a short time and you only get a few months driving a current-year car.

{HTML_BULLET} If you have a trade-in, it is likely to be worth a little more now than in January – but there is no guarantee of that because second-hand prices have firmed up a lot.

{HTML_BULLET} Dealers will be under pressure to shift a lot of cars so there will be some excellent deals out there.

Indo Motoring

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