Car rental pays in the long run

The car rental business in Hong Kong may be hampered by the absence of inbound tourists on fly-drive packages, but there is still consistent demand to meet the needs of other types of clients.

As Rebecca Hawkins, general manager of Hawk Rent A Car (HK), explains, the local market broadly divides into three parts. There are short-term hires usually for new arrivals, returning residents, or people whose own car may be in for repair. There are also long-term leases, in most cases arranged by employers for senior executives whose remuneration package includes a vehicle. And there is steady demand for chauffeur-driven limousine services for airport transfers, cross-border runs, or just that special night out.

'Actually renting a car is very straightforward,' says Hawkins, whose company has a fleet of more than 100 vehicles in Hong Kong. 'You can select from the standard groups used in the industry - economy cars, standard saloons, SUVs and luxury cars - and customers don't normally ask for a model, but send an inquiry based on the group and engine capacity.'

Indicative rates for a short-term, self-drive rental of a four-door executive sedan start from HK$630 per day or HK$3,150 per week. Terms include road tax, insurance and unlimited kilometres. Companies publicise standard rates on their websites and are open to negotiating special deals for longer periods.

'Generally, the longer you keep the car, the cheaper it is,' Hawkins says. 'So it works out much less if you rent for a month, rather than week by week.'

She emphasises the importance of regular servicing and maintenance, which are the basis for reputation and reliability. For her company, that means sending all cars for a seven-hour turnaround check before they go out to the next customer. In addition, corporate policy requires that all vehicles are purchased new from authorised local agents, so that there is no risk of involvement with parallel imports or second-hand vehicles with possible defects.