Title:

Ways Rental Fleets Are Elevating

Used Vehicle Residual Values
Meta Description: Search Description
The memories of the stripped-down hire car or Car Rental are gone. What’s changed, and the
way has it affected the new and used vehicle ecosystem?

Primary Key Word:

Car Rental

Primary URL:
https://rentalcarsuae.com/

Secondary Key Word:

Rent a car Dubai

Secondary URL:
Same As Per Primary

Author Bio
Muaaz bin Hayyat is a senior analyst at Amex Cars Valuation Services. He is liable
for the creation of data-driven insights on new and used vehicle market
performance In Dubai Emirates, and is that the author of Guidelines, a monthly in-
depth review of the automotive industry.

1st header

You remember the old saying: “You never get a second

chance to form a primary impression?
It is a phenomenon that is  very likely at work when it involves the conventional  wisdom that
still  exists when it involves the impact of Car Rent fleet vehicles on residual automotive values. this
is often very true for those that could also be carrying over decades-old memories of
their hire car experience.
To be fair, those memories are real.

In the not-so-distant past hire car and Car Rental companies had an earned reputation of shopping
for — and putting into service — very basic, stripped-down models. If you knew anybody within the
past 20 years who was driving around during a sedan that had manual rollup windows, you'll safely
conclude your acquaintance had purchased the vehicle from rental car inventory.

Today, however
the realities round the Rent a car Dubai fleet are much different.
Car Rental companies still buy and sell many cars annually . Car Rent fleets purchased 2.30 million
units in 2020 and still be the most important purchasers of vehicles within the world. If you
include corporate, government and non-profit fleets, that number jumps to over 5 million units.

The main difference today — as against a decade approximately ago — is that hire

car companies are now buying vehicles that are literally desired by consumers. Buyers within
the Car rent fleet have proactively incorporated greater numbers of mid- to upper-level trim models in
their fleets. the times of getting to a hire car branch and seeing rows and rows of basic beige
sedans appear to be over. That's to not say there still aren't a lower-trim Car rent vehicles, it’s just that
today, there's a way better mixture of trim levels.

What has changed?

We can probably start with competition and transparency. Consumers Car Rental today have far
better access to a wider array of choices. they need a way greater ability to match and contrast price
and features to quickly — and cost-effectively — determine what experience they need to possess once
they Car rent a vehicle.
But in upscaling
Car Rent company leaders have also discovered that there's a big opportunity emerging on the back-end
of their vehicle lifecycle management strategy. When it is time for hire car companies to unload their
fleet within the marketplace, strategic investments in fleet mix are ensuring that car auction
houses aren't flooded with thousand of an equivalent generic vehicle model. In fact, they're now selling
vehicles that buyers actually want to get for themselves.

The move has had an extremely positive effect on the

ecosystem.
• Strengthening Residual Values: When it involves the used vehicle market, residual values are always
stronger once you have the proper level of supply and demand to deal with the various demographic
segments. By diversifying the combo, Dubai Rent a car fleet managers have stopped oversupplying the
low-end of the market to more rationally address the requirements and desires of more consumers. this
can be having a awfully positive effect on overall residual values.
• Strengthened Relationships with OEMs: Given the amount within which they purchase vehicles, car
rental companies have always had a special relationship with car manufacturers. This relationship has
now been enhanced as OEMs work hand in hand with Car rent fleets to satisfy the requirements of
various car rent. While this helps hire car companies become more competitive — and profitable — it
is also creating a “lab-like” environment for OEMs by providing early bird insight into what consumers
want.
• Strengthened Dealer Relationships: The move to a more diversified portfolio of vehicles has been a
boon for dealers who now have the opportunity to buy clean, late model Dubai rent a Car units
-that have been well maintained with service records. These aren't the stripped down models of the
past, but desirable examples jam-choked with the newest technology and safety features, the items that
buyers actually need in the marketplace today.
• Opportunity to teach Consumers on the worth of hire car Fleet Resales: The one thing that the
pros within the industry have always known — and therefore the average consumer has not — is that
Rent a car Dubai fleets receive exceptional maintenance while they're in commission. Faraway from the
prevailing view of being ridden hard and put away wet, car rent are critical assets that are valued and
well cared for. As a result there's an enormous opportunity for the industry as an entire to
teach consumers. Not only have these vehicles been well maintained, many of them tend to stay under
manufacturer's warranty and eligible for Certified Pre-Owned programs. Consumers have a chance to
get cars that are full of the newest and greatest safety technology features without paying new car
prices. As more consumers are made conscious of this dynamic, residual values are going to be further
supported.
At Amex cars
we expect the positive influence of rental fleets on used vehicle valuations to continue into 2020 to 2021
and beyond. In fact, we're expecting even more hire car units to enter the used market. While
there could also be slight downturns in new vehicle purchases in 2021 and 2022 — we're talking about
just a few thousand units — this may only serve to place upward pressure on pricing and value.