Challenge facing commercial vehicle hire companies is to reposition rental as the "third way" for acquisition
                    
Commercial vehicle rental companies must work hard to continue the process of repositioning hire as the "third way" in acquisition, says TLS Vehicle Rental.
The GE-owned company believes that a subtle shift has occurred in the hire market during the last few years, with more fleet operators beginning to view rental as a viable long-term acquisition method alongside outright purchase and leasing.

Sean Welham, marketing director at TLS, explained: "If you look into the history of CV rental, it was something that was once viewed almost as a distress purchase - you rented a van or truck only if your own vehicle was off the road or if you needed to complete a one off job.

"During the last few years, that perception has changed, and many operators now take a more sophisticated approach, especially where a large degree of flexibility may be required or where there is some volatility in the sector in which a fleets operate.

"We now have some customers who have in place a long term strategy that sees them buy or lease the core 50-75 per cent of their fleet but the rest are rented. This is a solution that allows them to take advantage of some of the benefits of established acquisition methods but also to access the flexibility inherent in renting: if business falls away, they can hand the vans back; if it increases, they can quickly add more.

"The challenge facing us - and all other CV rental companies - is to extend this mindset much further across the market. When a fleet manager has a vehicle need, we don't want them to think 'should I buy or lease?' but 'should I buy, lease or rent?'"

Welham said that much of TLS's sales and marketing activity over the coming year would be focussed on trying to bring about this cultural change.

He said: "We will be taking on a more consultative role. It is not just a question of TLS trying to sell rental to someone who already wants to rent a van - but to help fleet managers identify when rental could genuinely be the best option for them.

"Especially with the slight degree of unease that many now have about general future economic prospects, we believe that this could be the right time to try and bring about this cultural change because of the potential nervousness some feel about entering into a long hire leasing contract or loan. Our first moves in this direction will be announced soon."