Kind Hertz brigade
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HERTZ UK Truck Rental and Leasing is introducing a revolutionary volume-user company rate structure which signals the end of the conventional annual rebate schemes.
Instead of waiting all year for rental charges to mount up before paying out a rebate (as under present Annual Incremental Discount type schemes), Hertz will allow selected companies to hire Hertz lorries at the weekly daily rate, even when the rental period is for less than a week.
For example, there is an instant discount of 28 per cent on Hertz' published daily rates for threeand seven-ton box vans and on 32-tonners.
This new cost saving programme is called "Advanced Purchase without Payment", and, says Hertz Europe truck marketing manager Mike Libra, "The scheme has been introduced in the interests of the customer because inflation has been eroding the real rebate received after a year's renting.
"Companies which received a rebate cheque for, say, £10,000 at the end of last year, had lost out in purchasing power by as much as £1500 because of inflation." To qualify for the new Hertz offer, transport managers simply estimate their rental requirements for the year. Under the current AID schemes, they could expect a £10,000 cheque for business totalling £100,000 a year. But with inflation running close to 20 per cent, the real return could be as little as £8,000 in purchasing power, with a further loss on possible interest earnings.
If the bulk of the rental requirement was used early in the 12-month period, the actual cost savings under the Hertz scheme would be even greater.