Car hire – Rent as per convenience


Hiring of cars in the twenty first century is the latest fad. Cars are hired by companies on a short term basis from a few hours to a few weeks. The car hire sector is well organized with many local branches which allows or enables the customer to choose accordingly. Car hire serves the customer in two ways. Firstly it gives the customer a vehicle as he does not own one himself and secondly they serve the self moving industry by offering different vehicles for different purposes.

History of car hire

The first Nurburgring car hire services began in the early nineties by a German company. America also started the car hire system in 1916 while United Kingdom started in 1920. The car hire sector expanded so rapidly that there were one thousand two hundred delegates for a convention organized by America Drive yourself association. After World war two several International companies joined the band wagon.

Business models

Car rental start their business by buying a fleet of cars and then giving them out on rent. These rental cars can be either self owned or they can be leased out. There is also a guaranteed buy back scheme where one can buy the vehicle directly from the manufacturer who outlines the price lower than the market or show room price.

Types of vehicles

Car hire companies usually offer a range of vehicles depending on the customer’s budget and space requirement. At major air ports where there is a continuous flow of passenger’s rental usage some specialized companies offer high end vehicles for rent. Cars come in different sizes and people have their own choice of selecting a non ac against an ac car.

Rental conditions

Cars on hire have a stipulated set of rules that need to be followed on taking a car on hire. Though the rules may vary from company to company however the standard rule is that the vehicle must be returned in the same condition as it was taken. This rule is mandatory. Also the vehicle must not exceed the mileage restriction, failing which the customer will be charged extra. Insurance companies also have their own stipulated guide lines where in the minimum legal age of the driver to be eighteen and above. A majority of the car rentals agencies allow for the use of credit card facility. If any defect is found on the car after its return the same is added to the card.


Car rental companies always ensure that third party insurance is done in case of accidents. These companies maintain liability insurance on their vehicles. It is mandatory when renting a car to offer different types of supplement insurance at an extra or additional cost. Personal accident Insurance covers medical cost and accidental deaths for the renter and the passenger. Personal effects coverage insurance includes risk of loss or damage to personal belongings of the renter and the renter’s rental companies in Europe, South America and Australia offer excess insurance as this covers up as an opt in secondary insurance.