Ten ways vehicle rental is changing transport

21 June 2024  |  Guest blogger  |  Cars

“When thinking about vehicle rental most people picture an airport desk, that post flight portal to holiday adventures. But this is just one of the ways rental contributes to our economy and society. You might not see them or be aware of them, but they pack a punch.

New research we commissioned from PA Consulting has uncovered ten ways that rental is changing transport in the UK.

Why does this matter? Transport is at an inflection point. Things cannot continue as they have. For emissions to reduce, health to improve and prosperity to increase we need to change how we travel. A logjammed, toxic and carbon heavy future will hit wallets, lungs and the planet.

Rental is quietly making sure that we instead navigate into a better future. How is it doing that?

1. Rental is for day to day: The use of rental vehicles for day-to-day activities (48%) is higher than for work purposes (28%) and holiday and leisure journeys (15%) combined. This means that rental is a filler for people’s basic mobility needs. Giving flexibility for people to be on the road when they must be.

2. New, safe and high-tech: The average rental car is eight years younger than its privately-owned alternative. These are vehicles at the cutting edge. With new vehicles ever more expensive, rental is getting normal people into some of the best cars on the road.

3. Cleaner and greener: The use of car rental instead of private vehicles saves over 25,000 tonnes of CO2/year. The average rental car or van also emits less NOx and particulates than its privately owned counterpart.

4. Fewer cars on the road: Vehicle rental may contribute to the disposal of more than 90,000 private cars each year. Giving access to cars when people need them empowers people to give up their private vehicles. Similarly, businesses would buy extra vehicles if rental wasn’t an option – SMEs would need an average of seven more, and large firms an average of 54. Rental fights congestion AND emissions.

5. Giving confidence in going EV: 25% of EV owners chose rental over other transport to meet specific needs and requirements. Rental allows individuals to transition to owning an EV but still access ICE when they need it.

6. In partnership with public and active transport: One third of vehicle rentals are used in conjunction with another type of transport, with 48% of these being public transport, cycling or walking. Rental vehicles are part of a mobility ecosystem not just point to point transport.

7. Serving rural users: Rental sites cover the UK, providing access to mobility where it is most challenging. 25% of rental vehicles are picked up from out of town/rural destinations, areas that are more reliant on access to private cars.

8. Big business benefits: 58% of car hire and 82% of van hire is with business customers. The majority of Critical National Infrastructure sectors rely on vehicle rental. Rental gives firms the certainty and support to pursue projects and investments in the UK.

9. Supporting small firms: 50% of business rental is with SMEs. 82% of businesses with 11-50 employees rely fully or partially on vehicle rental. These firms are the backbone of Britain but often the most under pressure. Rental keeps them moving.

10. Helping firms grow: 35% of businesses reported using vehicle rental to free-up cash for other priorities, and 40% say rental reduces operational burdens. Rental lets firm focus on what matters, their core business and fuels growth.

Rental’s massive impact in the transport transition cannot be overstated, but there is more it could do. We need to nurture this successful sector to unlock the next phase of its evolution and capture the benefits for the transport system as a whole.

So, when you’re next on the road think about how rental is keeping Britain moving.”

This guest post was written for Better Transport Week by Catherine Bowen of the BVRLA. Could you rent a car from time to time rather than owning one?