Rental Cars Procurement Intelligence: Rental Cars category is expected to have pricing growth outlook of 6.95% From 2023 To 2030
Rental Cars Procurement Intelligence In this rental cars procurement intelligence report, we have estimated the pricing of the key cost components. Asset depreciation, fuel, accident insurance, and maintenance form the largest cost component of car rental businesses. Together, they account for more than 80% of the total cost. The cost also depends on the type of vehicle such as sedans, SUVs, or compact cars. For instance, a lifecycle analysis of a typical fleet sedan with an annual mileage of 20,000, an interest rate of 2.8%, and a depreciation rate of 2.25% shows that the cost per mile bottoms out at 48 months, with a value of USD 0.329. This is the optimal time to cycle the vehicles as the cost per mile will start to increase after this point. Further, the application such as local usage, airport transport, or outstation use also determines the price of the car rental service. When examining airport rental locations, the results were generally consistent with the ...