Reducing the costs of a car rental company is not always easy. Here are 5 tips to optimize spending in this sector.
The managers in charge of running a vehicle rental business know this very well, managing such an activity requires a certain amount of skill. When costs rise, it is difficult to reverse the trend. However, there are a few tricks to reduce the costs of a vehicle rental company and drastically increase its profitability. Let’s analyze the solutions to implement and the mistakes to avoid in order to minimize the expenses of a car rental company. These tips are valid whatever the size of your fleet and your orientation towards short, medium or long term leasing.
Anticipate in order to improve the profitability of a car rental company
The constantly changing and highly competitive car rental market requires the anticipation of various criteria to improve the profitability of a car rental company. Here are the two main tips to consider to anticipate the evolution of your car fleet and tailor it accordingly.
1 – Anticipating automobile claims
Anticipating automobile claims is often a source of complication in the management of the vehicle rental business. A customer has just had a car accident? Has your rental vehicle been stolen or damaged? Don’t wait to report an automobile claim. More importantly, analyzing the impact of the claim can help you identify a relationship of cause and effect between the claim and the category of the vehicle that may prove to be accident prone. Anticipating automobile claims and tailoring your leasing offer accordingly is a first step towards improving the profitability of a car rental company.
2 – Detecting vehicles that increase your expenses
You may not realize it, yet there may be vehicles in your fleet that contribute significantly to your costs. Age and kilometers driven are the main causes of increased vehicle costs. As mentioned above, these vehicles often account for most rental claims. Identify these vehicles in your fleet and sell them at the right time before they affect your profitability. Effective analysis and reporting tools such as myrentcar and its claims and cost management features will greatly help you anticipate and plan the sale of these vehicles.
Optimizing management to control the costs of a car rental company
Controlling the costs of a car rental company by optimizing its management is essential. Let us review the three main tips that greatly improve management in the car rental industry.
3 – Optimizing transfers of rental vehicles between agencies
If you are a multi-agency car rental company, better management of transfers of rental vehicles between companies allows you to better control the costs of a car rental company. Here too, a thorough knowledge of your offer and your fleet is essential. Being aware of the shortfalls in the offer of certain rental agencies will enable you to compensate with the excess of vehicles from other agencies. The idea is to be able to offer a continuous quality service in all your rental locations. This constant rotation and tailored service limits the cost of returning vehicles. A philosophy that makes sense within the wider objective: better managing your business.
4 – Know your expenses to negotiate better
It is necessary to know the expenses of your rental company to negotiate better. The more knowledge you have on the subject, the better your negotiating power with suppliers and garages will be. Profitability necessarily involves savings on purchases, maintenance and repair costs. Your expertise on the subject will play a key role in negotiating your costs with external stakeholders. Don’t be fooled!
5 – Manage the re-invoicing of damage to your rental vehicles
The invoicing of damages to your rental vehicles should also not drag on. Indeed, it is unfortunately common to find your damaged vehicle at the time of handover. Identify the damage quickly and be sure to charge the customer accordingly. These details should not be taken lightly if you do not wish to end up paying the bill yourself. In order to simplify this often tedious process, the rentpad check out application ensures that the customer is billed immediately.
Hitechsoftware is committed to reducing vehicle rental company costs
A decrease in the costs of a vehicle rental company today requires the support of efficient and adequate IT tools. Experts in solutions dedicated to vehicle and fleet rental management for more than thirty years, hitechsoftware has been developing solutions to reduce the costs of car rental companies. Its online rental management tool myrentcar ensures rigorous and optimal management of your car fleet. This software centralizes and analyses all the data of your rental activity in real time.
Equipping yourself with a dedicated solution means allowing better monitoring and greater efficiency in the maintenance and upkeep of your fleet. All of this while accessing preventive alerts and your fleet history in the blink of an eye. A reference in the field, the myrentcar solution is an ultra user-friendly, mobile and customizable tool that is tailored to all your rental needs and optimizes the profitability of your rental company. In addition, myrentcar is compatible with the rentpad tablet application. Ideal for quickly anticipating the evolution of your vehicle fleet and implementing the above advice. For more information, please contact our team here.