Profits boost for Rental and Leasing
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• Profits, sales, and return on capital are all increasing in the vehicle rental and leasing market, according to a new report from ICC Business Ratios.
In the report, Vehicle Renting and Leasing, 105 companies active in vehicle rental and leasing are compared and analysed, over the three-year period ending in October 1985.
The report shows that sales grew on average by 36% over the three year period, and profit margins rose 18.3%.
Companies specialising in vehicle rental appeared to fare best though towards the end of the period companies specialising in leasing were boosted by the phasing out of capital allowances.
ICC says that results of the combined leasing and rental operations are rather poor, "This suggests quite strongly that these two types of activity. . . ought not to be mixed. In terms of both returns on capital and margins, falls outweighed losses by two to one."
The report is available from ICC Business Ratios (01-253 3906).