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Renting and leasing on the rise in Colombia

The international trend towards vehicle renting and leasing is also manifesting itself in Colombia. That is the conclusion of an interview by local newspaper El Tiempo with Avis executive vice-president for Colombia, Peru and Ecuador, Francisco Matheus.

Longer term vehicle renting was introduced in Colombia in the late nineties, but it is only since the last five years that the attitude towards renting has changed. Before, owning a vehicle equalled status, whereas long term renting renting was considered a solution for those not financially strong enough.

Companies are starting to realize that not owning a vehicle has many advantages: they can use their capital for their core business, their credit lines are not affected –leaving them enough opportunity to use credit for business-relevant investments, and finally, the management of the fleet is outsourced to a company that knows the tricks of the trade.

Direct and indirect savings potential
Avis has been posting double digit growth figures the last eight years. One of the key drivers is the savings companies can achieve by switching from outright purchase to renting. “In some cases, we see savings of between 15 and 20 percent. Even when the direct economies are lower, it is important to realise that the real savings are in the administration space,”said Mr Matheus.

In Colombia, Avis has some 20,000 renting contracts, a number that is rising under the influence of countries like Spain and the UK. “There still is a huge potential left, even though Colombia is already clearly ahead of Peru and Ecuador. Apart from renting for businesses, personal renting as well holds significant prospects,” the Avis executive concluded.  11/07/2017  |  Dieter Quartier

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TAGS : Avis Colombia 
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