What is happening in the rental market?
Laurie Dealer had heard several whispers regarding the future, or lack of, involving some major names in the rental market. With TLS in the process of departing and shifting its stock as Laurie Dealer types, and news that Leaseway Vehicle Rental is in administration it raises concern the rental market is struggling.
Is it possible that it's the light CV rental market that is over subscribed?
TLS has been downsizing since 2004 and much of its business in the light CV sector is with local authorities and utility companies, and Leaseway, who with 13,000 vehicles is more than double the fleet at TLS, appear to have an issue with liquidity, a lack of hard cash to service its day-to-day issues.
Rumours that large rental businesses involved with trucks and trailers are finding it tough always does the rounds but in the current climate its feasible there is more to the usual stories than meets the eye, or ear.
Rental is often touted as the easy option for operators to fill the void, and cut down its financial commitments on paper but RA Meredith provided more evidence that there are alternatives to the hiring stock.
With the manufacturers getting more involved with the rental market (MAN Rental recently opened its doors) the market has hardened and competition is tougher than it has ever been before.
Conversely, the festive run in has seen rental operation in strategic markets more than hold there own. Laurie Dealer hears that Cartwright Rental cannot get enough trailers such is demand.
TLS and Leaseway, believes Laurie Dealer, could well be the exception...