Car rental firms to help new car industry

Experts in the car buying market are predicting that vehicle rental companies will help the sales market start to grow again. Despite the government’s money for old cars scheme, where you receive payment for an old car from the government, ending soon after an investment of £400 million, the predicted sales to rental firms over the next year are expected to kick start their finances again.

The UK Government earlier this year made steps like the US where they offered money for old bangers. It was an incentive to encourage people to buy new cars and has paid off well for the UK car manufacturers, but is just coming to an end and we have taken full advantage.

The industry experts are now saying that 2010 will see car hire firms replace their older vehicles that they kept hold of to ride out the recession tidal wave. Many firms now have fewer cars on their books and a lot are older than what they would usually have. The car rental market is now looking up as many of the big names have managed to pull large figures in revenue and not be far off last year’s profit.

For the first 11 months of 2009 new car sales figures rose to 1.84 million and although this is down by nine per cent on last year there has been a steady rise that has shown improvement over the course of the year. Next year is predicted to be better for car sales and we will once again see brand new cars in the car parks of rental firms.