The Hindu Business Line : Rent a happy journey

Armed with a tele-booking for a sedan done through Enterprise, North America’s leading car rental company, we headed for the nearest rent-a-car location one morning. A tall eager, beaming Chris Rickard, the customer relationship manager, greeted us warmly, seated us and quickly crosschecked the booking in the company’s system.

The deal was done in five minutes as Rickard swiped my credit card to hold some money as guarantee. Out at the parking area stood the flashing silver Elantra. Rickard jotted down the fuel meter reading and the mileage odometer. The weekend special comes with a limit of 80 miles per day, with every extra mile charged, and the customer needs to return the car with the same fuel.

Cars can be rented daily, weekly or even for months together. The rates vary across segments like the compact, sedan, luxury, minivan, sports cars, and SUVs. The weekend specials can be rented from Friday through Sunday at attractive rates, and sometimes even a luxury car can be had for the cost of an economy segment. Car rental companies have abbreviated toll-free numbers through which bookings can be made and the nearest dealer for delivery is identified.

Finally, we made the pre-rental walk around the car and Rickard marked the dents and scratches on the rental agreement form. We had a collision damage waiver and liability cover through our company’s corporate plan and were all set for the drive.

Impeccable service

The self-drive car rental system is well established in North America, especially in places like Michigan, which is devoid of public transportation.

The system originated at shops that were equipping vehicles with taxi lights and meters; they soon began renting vehicles as taxis. John Hertz was one such innovative businessman who began renting the vehicles around 1915.

Later, the railways set up a franchise of local car rental agencies at various stations. After World War II, with the boom in the airline industry, franchises were opened at airports led by Avis. According to ARN Online, a magazine of the North American car and truck rental industry, the US auto rental market generates around $20 billion in the nearly $32-billion international market.

As the proportion of cars rented during weekdays by the corporate sector is higher, weekend leisure travellers get attractive rental rates. According to Avis’s Web site, the proportion of corporate and leisure rentals is about 60 per cent and 40 per cent respectively. Hertz and Avis still continue to lead airport rentals, while Enterprise leads in off-airport rentals in North America.

The rental companies often offer free pickup and drop-off services, which I used to get back to work after the weekend; the attendants even take the extra effort to drop on the opposite side of the road, wherever necessary. The cars can also be returned at a different location from the one where it was rented. Before embarking on long trips, the rental company explains tyre changing procedures and cruise controls, if required. The rental fleet undergoes preventive maintenance which includes washing and oil changes.

A distant self-drive

In comparison, the Indian car rental industry is predominantly chauffeur-driven and largely unorganised. Driving is quite often dangerous, with traffic violations galore. Even though the rental comes with a liability cover, the accident claim procedures are frustrating and time-consuming. Also, the liability claim might not be fully reimbursed, with the difference billed to the client.

Generally, credit cards act as record books of credit history, but car rentals in India have no means of verifying the antecedents of a customer. Though highway infrastructure is improving, cities are clogged and direction signs inadequate. The pick-up and drop facility is charged. Above all, the cars must be returned to the original place of hire.

Due to cheaper manpower in India there is not much difference between the costs of self-drive and chauffeur-drives. However, with the rising wage costs, demand for self-drive may see an increase.

Rental car networks barely exist except in big cities, and self-drive options can be more economical in the case of inter-city travel. There is need to develop a chain and franchise to spur the car rental network countrywide.

The self-drive option was made available under the 1988 Motor Vehicle Act. As per the mandate, one requires minimum years’ driving experience for the self-drive option. Having a novice drive a car will lead to high rescuing rate for the car rental companies. However, there is need to enact separate policies for self-drives away from chauffer-driven taxis.

Fun on your own

The self-drive option offers freedom of mobility and also allows one to experience different cars, some as small as Kia’s Rio and some as big as a pickup. In fact, car owners prefer rentals for long-distance travel as it frees them from repair worries.

During a weekend outing in Detroit, I got hit by an SUV at a turn — a side impact on my Chevrolet Malibu. The door on the passenger side was damaged. The police after deliberation didn’t give a ticket and I deposited the car at the nearby rental location.

As I tried to explain to the person-in-charge about the accident, with many apologies at the ready, I was surprised to find him enquiring about me instead and stating that he was sorry the unfortunate incident had happened! I was offered tea while they inspected the car and filled the damage form. After putting signatures on a few papers, I determined not to drive again.

But the thought of hiring an expensive chauffer-driven taxi made me go for a replacement instead; it was a Dodge Dakota pickup truck, the only vehicle available at that moment, and within minutes I was back on the road.

A week after the incident the rental office made an apologetic call for the untoward incident and assured me that the insurance company would take care of it.

A couple of months after the incident I called Chris Rickard from India to enquire about the accident.

He said “Take it easy”.

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