Long Term Rental: why it makes (increasingly) sense to talk about "tailor-made service"
More than ever, choosing which vehicle to rent has become complex: the technological evolution of vehicles, both in terms of equipment and powertrains, has accelerated in recent years like never before. As a result, the obsolescence rate of vehicles has increased, which, on the one hand, benefits fleet rotation and vehicle renewal, but on the other, poses challenges for consumers, professionals, and businesses, who see their vehicles "age" much faster than in the past.
Adding to this is the great uncertainty brought about by the European Green Deal, which remains firmly committed to the 2035 deadline (the year when internal combustion engines will no longer be allowed for registration), as well as the sudden and unpredictable fiscal decisions of the Italian Government, which recently introduced a new fringe benefit regulation that heavily penalizes internal combustion engines (including mild hybrids) while favoring electric and plug-in powertrains.
New Decision-Making Variables
In the face of this complex, multifaceted, and rapidly changing scenario, the question that a professional, SME, or large company must ask is no longer just – as it was a few years ago – which car model to choose for their needs or those of their employees and collaborators, but more importantly, which powertrain to opt for.
Paradoxically, these changes are shifting decision-making away from brand loyalty, prioritizing other variables such as average consumption, charging autonomy (when considering electric and plug-in vehicles), residual value retention (i.e., the estimated value of the vehicle at the end of the leasing period), standard per-kilometer costs, routine maintenance expenses, and other critical factors.
Today, a Procurement Manager or Fleet Manager must gather and cross-reference far more data than before to define the boundaries of their corporate car policy and often realizes that even this information is not enough. This is especially true when managing traveling personnel who cover many kilometers per year: while new powertrains offer greater environmental sustainability and lower tax impact, their durability over high mileage remains uncertain. This is why many still rely on the good old diesel. The savings achieved through tax incentives and reduced environmental impact can end up being offset by inefficiencies: increased maintenance needs, accelerated wear and tear, higher frequency of extraordinary repairs, and higher costs for managing replacement vehicles, among others.
The Value of a Tailor-Made Service
Returning to the title of this article: yes, it makes more and more sense to talk about a tailor-made service when discussing long-term vehicle rental. In fact, we should almost eliminate the term “supply” because it downplays the value of the service, reducing it to a mere “commodity”, which couldn't be further from the truth.
Companies like Locauto have moved beyond this outdated perspective for years and have positioned themselves as mobility consultants, rather than merely long-term vehicle suppliers. In such a complex, ever-changing, and uncertain landscape, designing a mobility plan has become a collaborative effort, where the Fleet Manager can only succeed with the support of a long-term rental company, working together to establish a framework that is economically sustainable, efficient, and compliant with regulations and corporate green policies.
