Sydney’s car rental industry is in a “state of flux”, with some leasing operators reporting an uptick in new car rentals.

While the city’s economy has improved in recent years, demand for cars is still high, and rental rates remain low.

However, car rental company Convertible Car Rental, which has a network of more than 1,000 rental cars across the state, says the industry is still in the early stages of the downturn, and the company is expecting a “staggering increase in car rental demand”.

The Sydney-based company said it is expecting more than $300 million in new rental car rental investment by 2021, up from the $130 million it expects in 2021.

It said it expects the industry to see an increase of nearly 25 per cent in rental car revenue by 2021.

“Our current rental market is not sustainable, and we believe it will continue to be so for the foreseeable future,” CEO James Davenport said.

“New cars will still be an important part of our rental portfolio in the coming years, but we need to see a strong increase in rental rates.”

Convertible Car rental, which is based in Adelaide, has seen its fleet of rental cars grow from more than 200 to more than 2,000 over the last year.

Mr Davenports said he was encouraged by the response to the industry’s recent launch of a mobile app, which allows users to book and book an appointment on the spot.

“We are seeing the positive feedback from our customers who are saying that the app has been incredibly helpful,” he said.

Convertibles car rental in-store servicesMr Davenpool said the app would also help the company with the launch of its car rental services, which will be available in-stores, in the first half of the year.

“This app will enable our customers to book their next car rental through our mobile app and have it available on our website when they need it,” Mr Daveton said.”[Our customers] have also told us that they will be using the app to book new car rental appointments on the go, when they are not at home.”

Conversionible Car Rentals will also offer a variety of in-house car rental options, including car rental from one of its vehicles, as well as leasing options such as a car rental business.

The company said more than 4,000 new car hire reservations were booked for the first time this year, and more than 20 per cent of car rentals booked for 2021 were for in-home use.

Mr Daveport said the company was confident it could recover from the industry downturn.

“The industry is very strong and we expect that we will see some of that recovery come through in 2021, but it will be in a very gradual and gradual way,” he explained.

Topics:business-economics-and-finance,industry,nsw,southern-australiaFirst posted February 18, 2021 14:27:46Contact Sam Ford