More than half of fleet managers are using daily rental less often as a result of rising prices in the sector.

The results of a Fleet News online poll show that 52% of fleet managers are cutting back on daily rental use, compared to 48% who are not.

The sector has seen a bout of price rises this year with rates rising by up to 8%, and there are warnings that rates could rise by a further 15%, according to Sixt’s managing director Ian Lawrence (Fleet News, September 10).

Responses to the survey show that as well as reducing rental use, companies are also thinking smarter about their staff mobility needs. Informal extensions to contract hire deals, keeping spare vehicles and fixing prices for up to two years in advance are just some of the ways that fleet managers are avoiding paying more for their daily rental needs.

One fleet manager, who asked to remain anonymous, said: “We only use daily rental where the requirement is less than 14 days. Anything more is always either vehicle reallocation or contract hire.”

Another fleet manager taking the contract hire route added: “In times of uncertainty we have informal contract hire extensions until we decide on how best to proceed.

“If you speak to your leasing company they are generally flexible in this area for up to six months after the contract has originally expired.”

Another fleet manager added: “We have a two-year fixed price contract so we are not suffering from price rises.”

Paul Tate, commodity manager at Siemens, said: “We are using daily rental less, but it is just one measure we have in place to reduce costs.”

Andrew Davies, a franchisee at Interlink Express, added: “We’re using it less – it’s just as cheap to keep a spare van.”

But Inspired Gaming’s fleet manager, Gary Black, sounded a resigned note: “We’re not using daily rental less – if there was an easy alternative we would not use it at all.”