The Functioning of Car Rental Companies

Planning a vacation involves a number of things like booking for hotels or accommodations and also means of conveyance like flights, train and also find car hire in the area where one plans to travel. A car hire agency is a company that rents vehicles for short duration of time mostly ranging from a few hours to a few weeks in return for some fees. It is an arrangement whereby numerous local branches offer vehicles for rent and allow a user to return a vehicle to a different location. These are mainly located near airports or busy city areas and are supported by a website making online reservations possible.

The various aspects of car rental companies

Car rental companies function by purchasing or leasing a number of fleet vehicles and letting them to their customers for a fee. Rental fleets can be planned in various ways. They can be owned completely, they can be leased, or they can be owned under an assured buy-back program approved directly through a manufacturer or manufacturer’s financial arm.

Towards the end of a rental vehicle's useful life, rental companies mostly sell them to the used car market to dealers across the country through direct-to-dealer and specialized wholesale auctions companies. Dealers usually get an inspection of the vehicles done to assure that they meet the safety standards of that dealership and then sell the car to the public.

Rental agencies have a range of vehicle sizes to offer to suit a different budgets and space requirements and some furthermore offer specialized cars to suit its location such as convertibles, prestige models, hybrid/electric vehicles or SUVs and passenger vans. Some independent car rental agencies offer high-end vehicles for rent at major airports at reduced prices. To facilitate a standardized classification and easy assessment of car rental prices, the Association of Car Rental Industry Systems and Standards (ACRISS) has developed the ACRISS Car Classification Code coding system. This denotes the size, door count, gearbox type and whether the car is air-conditioned, encoded into four letters. Additional categorization based on seat numbers and trunk volume were also set by the Belgian Rent a Car association to provide a integrated system for evaluating the car types in online reservation systems like Amadeus or Argus.

The car hiring system is based on many conditions which may vary from one country to another and from one company to another. Normally the vehicle must be returned in a good condition and must not go beyond a maximum driven distance, or else extra fees may be charged. Recently GPS technology has been utilized to a great extent to limit maximum speeds or for driving to specific regions. The majority of car rental companies prefer that the customers use credit cards so that they can charge additional fees in case of a fault in the car on its return or for road tolls, motoring related fines or missing petrol. To find a car hire one must keep all these conditions in mind before selecting the one that best suits your requirement.

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