Car Rental on long term and the luxury car focus

Property Consulting & Promotion 1

Car rental in the short,medium and long term

Focus on luxury cars


What mean the short andmedium term rental

To hire a medium-term that generally means a rentalranges from 1 to 12 months, unlike the short term,ranging from a few hours up to a maximum of 3-4weeks (although some companies already classified inthe medium term rental that lasts for more than aweek).


What is the long-term rental

For long term rental is defined as those covering a periodbetween 12 and 60 months.

In Italy it is widespread especially among the vehicles, butits applicability is also extended to other categories ofgoods: from computer and office machinery to building,from agricultural equipment to the medical equipment.


Why rent a good?

For businesses, the main advantage is found in greaterflexibility, being able to vary more frequently itsfleet.

The formula in the medium term is increasinglypracticed by individuals, primarily for work-relatedneeds, but also for tourism or recreation.

The rental service has been going on for over a monthrepresents the most affordable solution for those whomust relocate to another city due to a new job, or havethe need to travel, even for a vacation for a week orfew months.


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The customer, who becomes an easy to use, it keeps itsrequirements in the choice of vehicle and related services,but is free of all operational and financial risks associatedwith the purchase, management and resale.

With only pay a fixed monthly fee so you get all thoseservices that ensure the efficiency of vehicles andmachinery.

Significant tax benefits too: the average savings forcompanies is 15-20% compared to the management of afleet of vehicles owned.

The choice to manage the fleet with long-term renting is inline with the trend to "outsource" non-strategic compart.

Means saving time, labor and capital (and taxes ...)


Sector information: The car rental industry confirms its countercyclical role: over the first six

months of 2008 share 217.000 new cars put into circulation, compared toalmost 200 thousand for the same period of 2007

In particular, it should be stressed that continued to grow market share inthe sector throughout the world of cars, which stands at 15% after the first10 months (in 2007 stood at 13%). All this reduces the vintage car marketdespite a record 2007 (reinforced by government incentives), but subject toa drop in registrations this year, well over 10%.

For the record, the first half of 2008 has seen the car rental industry as awhole (short rentals, long term and fleet management) to continue the racethat has continued without interruption for over a decade, recording aturnover of +7% ( 2.367 million euros) over the first half of 2007 (2.212million). The most interesting case of registrations that, after the stop oflast year determined by the complex rules on taxation of the car business,demonstrate a + 9%, demonstration of the increasing penetration of servicesinto new segments of demand.

Estimates are also excellent throughout the year 2009: revenues stood at 4.8billion euro in total (+5% vs. 2008); same increase for the fleet moving fromcirculating 632.000 over 665.000 vehicles. A slight decline due to economiccrisis and the great difficulty of automotive, with contraction order andreduction in registrations, which identify an end of the year to +4%.


Follows:data of the “green cars”

The substantial increase in 2008 demand for rental cars with low environmental impact (+100%over 2007, although still low-volume, close to 8,000 units) is an important sign of progressiveinterest in the environment and sustainable mobility an indication of a greater and broader socialresponsibility.

This trend is accompanied by the application of the latest generation of satellite navigation,particularly valuable not only for greater safety on the roads, but also for reducing consumptionand thereby emissions.

Registrations by vehicle rental markets contribute to the rejuvenation of the entire fleet assetsthrough high turnover of vehicles (fleet for 6-8 months in the short term and for 36 months inthe long term) and continuous maintenance and checks on cars in the fleet for the limitation ofemissions.

As for the score, the initiatives of many operators of charter to raise awareness of customersand the reduction of CO2 production is the best testimony of attention to issues in the fieldgreens.

If at first you could think of a limited interest to multinational companies, largely due to reasonsof image, or need to move (ZTL and exemptions for Euro 4), now is found to extend a realattention to the environment "on the fleets also in smaller companies and public administrations.

The supply of market participants engaged in supporting the "green car policy" of enterprisecustomers today is oriented towards the placing on fleet of environmentally friendly vehicles(mainly feed bifuel and hybrid), monitoring of emissions of the fleet and identification ofsolutions for reducing their environmental impact, provide advice for the new construction of a

fleet that meets the parameters sustainable, safe driving courses, and low power consumption.


The long-term rental isincreasingly involved

Among the customers of long term rental, fleet remains stable part of PublicAdministration (about 20 thousand between ministries, local government, regions, provincesand large municipalities) that now constitutes 2% of turnover in the sector.

Important aspect is the sharp jump forward (+15%) of all registrations, the result of theaforementioned excess of the 'uncertainty tax "that had clouded the 2007 and 2008.

This is, without doubt, a further element for which the customer is aware of the manyfinancial benefits, economic, managerial and administrative aspects of hiring, having optedin 2007 for contract extension and reshaping of services and assistance, in 2008 confirmedthe preference over other modes of acquisition of the vehicle.

In early 2008 the management services of vehicles owned by others (fleet management)have kept score positive indexes: +8% and +5% in revenues for the vehicles operated.These services are administrative (management and payment of fines, payment of fees,claims management) or relative to handling, washing and even insurance and vehiclemaintenance.

On the market, there is an increase in the number of operators that offer fleetmanagement and it is confirmed that the flexibility on the supply side of the industryattests to the diversity, but also the tendency to provide packages of services contained inclient companies that choose different vendors to manage their fleet.

Estimates of the end of the year confirm the trend of the first half and foreshadow aclosure of 12 months largely positive (+8%).


Luxury cars: a growing segmentin the charter

Rental of luxury cars is used in situations as: - special occasions like a wedding, hen parties, celibacy

and events - for business transfers and business travel -branding services in order to promote social andcorporate identity of a Company.

Unlike the short-term hiring of cars on the lowersegment where the recession is obvious, the field ofluxury cars in the last two years has seen a trend ofdouble-digit growth (+25%).

The reasons have already been indicated in previouspages, adding that the tightening of fiscal controls andexacerbating further this growth.


Success Story:www.milanoelegance.com

Cars, private jets but also villas and Yacht: Thisoffer of Milano Elegance for rental short or longterm.

The intelligent use of luxury goods is the primaryphilosophy behind the success of this dynamicreality.


Success history:www.milanoelegance.com

The second element of success of this company is its ability to adapt their offer and workwith customers, which is derived by the offer of a rental service in the long term.

The company in fact offers a “full comprehensive” service. The control center of its headquarters in Milan, in fact, Milano Elegance collects real-time

information on cars currently in use, for each of them the company can: record the actual amount of time of use; reduce the risk of any failures, knowing when they need preventive maintenance, and this in

turn reduces the risk that the car is still outside the program, avoiding the resultinginconvenience to customers, enabling better planning of rentals;

in case of emergency, to quickly send a technical team at fault and collecting useful data toimprove their next rentals.

It 'also important to note that in the automotive producers located very convenience inmaintenance and spare parts: a little' as with razors and razor blades, the producer ofengines for cars, not so much gains from the sale of the motor, but its maintenance and thesale of spare parts.

But with its own system, Milano Elegance has brought this concept to a higher level: notselling razor blades and then, but the beard makes directly to their customers everymorning.

And this translates into unparalleled management control and Milano Elegance can thereforeoffer our customers very competitive rates.


Conclusion:

That of Milano Elegance is a system that primarily poses ahigh entry barrier to competitors, who can not competewith a service of this type, which strongly customer loyalty.

This barrier is also much more effective than those basedsolely on the financial offer or the variety and/ortechnology, but in fact subject to constant evolution (theultimate solution is more or less replicated by competitorsafter two to three years in this sector).

Secondly, this business model once again emphasizes theneed to tailor the service to the actual needs of thecustomer, leveraging existing support for any technology toassist in its activities.

The rental companies have understood this: who knows howlong will it productive, and customers themselves to graspthe concept of service in the long term ...


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Car Rental on long term and the luxury car focus

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