Do you want to rent a car? Do you know where to go? Well, looking forward into rented cars there are car rental companies out there that are willing for rental services. They are also referred as car hire or hire car companies that are known to their nature of services. They rent automobiles within a short period of time. Typically, rental ranges from couple of hours to several weeks. It didn’t exceed to straight years. There are huge car rental companies that are commonly operated with several local branches. These companies allow the renter to return the rented vehicle in any location. Preferably, the location is found near local and international air ports or any busy cities. It is often accommodated through online reservations.

Generally, Car rental agencies and companies offer rentals for those who are looking for a temporary vehicle. These people include the following:

  • Travelers

If you are out of town, you can rent a car in your destination for your convenience. It is easier to roam around the place when you have car with you. Lesser effort and time will be consumed that riding on a public transportations.

  • People who do not own car

Typically, people who do not own car go to car rental for several purposes. For example, if the family wanted to visit into a far place around their locality. Through rented car they can easily go to their place together with the whole family. There are also times that a person rents a car as used by a bride. When a bride has no car to ride on, they are renting a bridal car that is mainly offered by most of the car rental companies.

  • Owners of damaged vehicle

There are also car owners who seek the help of car rental agencies due to their damaged car. Temporarily, they rent car while waiting for the insurance compensation of the car. Sometimes, they are also using this rented car while their destroyed car is still in car repair shop.

The most common vehicles that are offered by these agencies are: trucks and vans. In some places, rental companies also offer scooters and motorcycles. Standard rental agencies can also offer additional product options including the following:

  • GPS (Global Positioning System)
  • Entertainment system
  • Navigation system
  • Insurance
  • Mobile phones

Historical background of car rental

During early times, there are already means of transportation that are already offered for rental. These include carriages, horses and chariots. And as time went by, the development of cars gave an idea to some car owners to do the same rental services. In early 1912, there is a German company that offered three rental cars in their locality. Then, this idea was spread across the world and reached America. An American citizen who owned a Ford model car allows local and visiting business persons to lend his car. This idea became a money-spinning to his career. It had grown over a year that leads to the manifestation of branches in 21 states.

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In 1920’s, competitors started to outgrow in America. The unique and undeniable rent-a-car business attracts the attention of other businessmen. This is when the car rental started that passed through different companies all over the world.

Business system

Renting car is one of the businesses that boom across the globe. There are interested business enthusiasts who operate this business system by leasing or purchasing fleet of vehicular units and let them rented by their potential customers in a higher cost. There are different ways of rental fleets such as:

  • Risk Vehicles-this refers to outright owning
  • Repurchase vehicles-this pertains to leasing or owning the car through buy-back program. This program is arranged directly by the manufacturer or financial arm of the manufacturer.

In some western countries, rental car registration system can be covered by simply using pen names, initials or companies. This aims to increase the value of resale by means of third party dealers or the manufacturer itself. In the northern region of America, rental companies that own brand-named surplus car dealers are very common. There are also car auctions being offered in some places in the region.

What are the types of vehicles?

Do you want to know the available types of vehicles for car rental? Well, most of the rental agencies of car can offer wide range of vehicle options. These vehicles vary on sizes that will fit to the customer’s budgets. Space is also highlighted as it is important in choosing rented car that will fit to the location. Commonly, prestige models, vans, convertibles, SUV’s and other hybrid and electric vehicles are massively offered for rentals. In other larger and busy cities, most of the independent car rental entities are offering old models of vehicles in cheaper prices.

What are the rental conditions?

It expected that in this type of business, rental terms and conditions are very important. These may vary from one place to another and from one company to another agency. In general, the primary condition is returning of the vehicle based on the approved time to return. This is important in order to avoid excesses to the payment.

There are rental agencies that prefer credit card when charging of additional fees is required. Basically, this might happen when there is a defect found on the car as the customer return the rented unit.

Car Rental Insurance

It is common that insurance comes along with rental cars. There are several types of insurance coverage which include the following:

  • CDW (Collision Damage Waiver)

It covers the damage costs due to moving accident.

  • LDW (Loss Damage Waiver)

It covers damage cost of the rented vehicle that reaches to the complete value of the vehicular unit.

  • PAI (Personal Accident Insurance)

It involves medical cost or accidental death of the renter and the passengers during the rental period of the car.

  • SLI (Supplemental Liability Insurance)

It is commonly offered in America which involves property damage or body injury to other people excluding the renter and passengers.

  • PEC (Personal Effects Coverage)

This insurance covers the risk of loss and damage to any of the personal belongings of the car renter during the covered period of rental.

Despite of the newest car models that are massively offered in a more affordable price, rental agencies still exist. This is because car rental is very important to several purposes.