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Facts About Car Rental Agencies

American Government Special Collections Reference Desk

Facts About Car Rental Agencies

Adriana Noton
August 22, 2011

A car rental agency is a company that rents vehicles likes cars and trucks for relatively short term rentals of hours to weeks. Most of these companies are national, with locations throughout the country. Some of the larger companies even operate internationally. However, most of these services are located near airports or in large cities.

Rental car companies offer a fast, easy, and convenient solution for people who do not have access to their own car for a short period of time. Some businessmen and women need to fly to cities all across the country in the course of their business travels. When they arrive at their business destinations by air plane, they then need a rental car to navigate the streets of the new city. Another common use for a rental car is when the renters own car is out of commission because it is being serviced.

Because there are so many different reasons to rent a vehicle, these companies usual operate a fleet of different vehicles from cars to trucks to vans and SUVs. These companies acquire their fleets in different ways. Some will purchase the vehicles outright. They then put the vehicles into hiring service.

After a period of time, they pull the vehicles from service and sell them used. They expectation is that the money generated from hire fees between the purchase and the sale of the vehicle is greater than the depreciation of the value of the vehicle. Other ways of assembling a fleet are by leasing, or through a buy back arrangement with a manufacturer.

Most vehicles available for rent are average economy class automobiles. However, some airports in major cities throughout the word have high end vehicles like Ferrari and Rolls-Royce available. The cost to rent these cars is usually entirely too high for the average renter.

The car rental is based on certain conditions, not the least of which is that the car is returned in the same condition it was in when leased. For that reason, the agent will inspect the condition of the vehicle before you drive off, that way they can tell if any damage the car has was preexisting or caused by you. You also usually have to return the vehicle with a full tank of gas.

There are restrictions on who can rent a vehicle. Although the legal age to drive in most states is 16, and the legal age to enter into a contract is 18, rental car companies do not rent to anyone under the age of 25. In any case, a valid current drivers license is required.

There are many advantages to renting a car. For example, if you do business in several cities, transporting your own vehicle to these cities is cost prohibitive. It is more cost effective to rent a car at each destination. Also, sometimes the condition of your own car, which might be adequate for short distances, will not allow for you to drive on a long trip. So, renting a vehicle from a car rental company that can handle the trip reduces the wear on your own vehicle.

Discount Car Australia offers everyday low rates, long-term car hire and one way car hire. Rental car classes include large corporate car rental, economy car rental, pickup truck rental.

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