23 Apr Does Increase in Petrol Prices Effects Rental Cars Market
Vehicle or Car Rental business has become so famous in recent years that some may regard it as recent development. However, it is a popular and old business all over the world, in ancient Rome, chariots were used as rental vehicles and with passage of time, Rent A Car business has developed and modified. Rental Cars are great options, it is used by many travelers and also by natives of any region.Rent a car is very beneficial for natives as well as for tourists. In 21st century, life is very busy specially in cities. People do not have time for having their own cars. Because having a car means you have to take care or your vehicle like your baby like car maintenance, car services. They prefer to use rental cars as it provides them freedom from car maintenance, car services, parking and traffic. It is also very helpful for tourists especially for those who travel from one city to another.
As rental car business is growing in a great speed everywhere. In the same manner, rental car business has very solid basis in Pakistan, specially in its some major cities like Lahore, Karachi, Islamabad, Peshawar, Quetta etc. Many successful businesses and companies, like Rent a Car Lahore, rental car Lahore, rent-a-car Islamabad and many more, are providing their services throughout the country.There are many factors that have great influence to your business. Rental car market is also affected by many factors like car price, age of your car, fuel consumption, engine type, car brand, car model, car type, insurance, maintenance, time of the year and most importantly oil prices.
Rental Car Market & Petrol Prices:
Petrol has a lot of significance in the economy because of the reliance on it in the production of energy. In the same way, transportation sector has very solid influence on the economy of every nation. Though, their relationship has been of a great deal of concern due to their roles. Increase and decrease in the petrol prices affect the transportation sector significantly.Variations in petrol prices affects everything specially in developing countries. Petrol prices have their effects on almost every business but in rental car market, petrol is the necessary to power a car. Rent a car industry will have to encounter one direct and inevitable economic factor – the increase in oil prices. So, petrol prices are the most effective factor specially for rent a car business.
Rise in petrol prices directly affects the rent a car market, since it adds up to the total price of rental car products. Increase in price of petrol would decrease the demand for cars. Moreover, the rise in petrol price also will affect the investment of government in public transport. When petrol prices increase, drivers spending more on petrol and consequently rental car companies had to increase the fares in order to make a balance in their businesses. Furthermore, this may prompt higher inflation level, which will directly affect the purchasing power of client.
Accordingly, clients may prefer to use public transport rather than use their own cars or rental cars. This will increase the demand of public transport. In order to avoid shortage in public transport, the government may spend more on the public transport to meet the quantity demanded of public transport, for example buying more buses and hire more bus driver to smooth out the transportation system. As supplied quantity of public transport increases to reduce the shortage of public transport. This will decrease the demand of rental cars.
Overall, renting a car favors you in many ways. Now you can find Cheap Rent a Car in Lahore and in many other regions and you can move from one place to another place easily for very little money. Also, you don’t have to wait in parking lots to park your car. You don’t have to worry about road traffic and you’re free from many maintenance duties too. You can sit back and relax on your trips and vacations with your families and friends, leaving all the worries of cars and their maintenance issues by renting a car. Renting a car is very good option for tourists who want to explore new places.