Business is strong for van rental firms

Van rental companies are busy in the run up to Christmas as operators continue to put off new vehicle acquisitions. Ian Lawrence, managing director at rental firm Sixt, says: "Pre-Christmas bookings are building nicely, with reservations at the same level as last year. However we're already 11% up in terms of revenue for this month [November]."

He adds that there has been a noticeable take-up of rental vehicles by smaller companies in recent weeks, as operators continue to delay updating or even selling their fleets to raise cash. "Customers are saying they're thinking of cashing in their fleets and want to rent a CV from us on a long-term basis.

"We're also finding that they're returning vehicles immediately after the job is done, or negotiating a rate if the vehicle isn't in use for a day, instead of paying the set charge for the whole time period." This shift is echoed by Chris Sharp, sales and operations director at Burnt Tree. He says: "Though we've seen growth in December 2006 and 2007, and anticipate the same for this year, it's been undoubtedly compounded this year by a distinct shift in thinking by fleet managers.

"While Christmas is typically a short-term rental event, over the last three months we've seen a marked increase in the number of enquiries regarding flexible fleet arrangements, as fleet managers look to provide best value and free up capital while retaining the number of vehicles they source. "We anticipate this will continue throughout December," he adds.