Car rental in the short,
medium and long term
Focus on luxury cars
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What mean the short and
medium term rental
To hire a medium-term that generally means a rental
ranges from 1 to 12 months, unlike the short term,
ranging from a few hours up to a maximum of 3-4
weeks (although some companies already classified in
the medium term rental that lasts for more than a
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What is the long-term rental
For long term rental is defined as those covering a period
between 12 and 60 months.
In Italy it is widespread especially among the vehicles, but
its applicability is also extended to other categories of
goods: from computer and office machinery to building,
from agricultural equipment to the medical equipment.
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Why rent a good?
For businesses, the main advantage is found in greater
flexibility, being able to vary more frequently its
The formula in the medium term is increasingly
practiced by individuals, primarily for work-related
needs, but also for tourism or recreation.
The rental service has been going on for over a month
represents the most affordable solution for those who
must relocate to another city due to a new job, or have
the need to travel, even for a vacation for a week or
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The customer, who becomes an easy to use, it keeps its
requirements in the choice of vehicle and related services,
but is free of all operational and financial risks associated
with the purchase, management and resale.
With only pay a fixed monthly fee so you get all those
services that ensure the efficiency of vehicles and
Significant tax benefits too: the average savings for
companies is 15-20% compared to the management of a
fleet of vehicles owned.
The choice to manage the fleet with long-term renting is in
line with the trend to "outsource" non-strategic compart.
Means saving time, labor and capital (and taxes ...)
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The car rental industry confirms its countercyclical role: over the first six
months of 2008 share 217.000 new cars put into circulation, compared to
almost 200 thousand for the same period of 2007
In particular, it should be stressed that continued to grow market share in
the sector throughout the world of cars, which stands at 15% after the first
10 months (in 2007 stood at 13%). All this reduces the vintage car market
despite a record 2007 (reinforced by government incentives), but subject to
a drop in registrations this year, well over 10%.
For the record, the first half of 2008 has seen the car rental industry as a
whole (short rentals, long term and fleet management) to continue the race
that has continued without interruption for over a decade, recording a
turnover of +7% ( 2.367 million euros) over the first half of 2007 (2.212
million). The most interesting case of registrations that, after the stop of
last year determined by the complex rules on taxation of the car business,
demonstrate a + 9%, demonstration of the increasing penetration of services
into new segments of demand.
Estimates are also excellent throughout the year 2009: revenues stood at 4.8
billion euro in total (+5% vs. 2008); same increase for the fleet moving from
circulating 632.000 over 665.000 vehicles. A slight decline due to economic
crisis and the great difficulty of automotive, with contraction order and
reduction in registrations, which identify an end of the year to +4%.
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data of the “green cars”
The substantial increase in 2008 demand for rental cars with low environmental impact (+100%
over 2007, although still low-volume, close to 8,000 units) is an important sign of progressive
interest in the environment and sustainable mobility an indication of a greater and broader social
This trend is accompanied by the application of the latest generation of satellite navigation,
particularly valuable not only for greater safety on the roads, but also for reducing consumption
and thereby emissions.
Registrations by vehicle rental markets contribute to the rejuvenation of the entire fleet assets
through high turnover of vehicles (fleet for 6-8 months in the short term and for 36 months in
the long term) and continuous maintenance and checks on cars in the fleet for the limitation of
As for the score, the initiatives of many operators of charter to raise awareness of customers
and the reduction of CO2 production is the best testimony of attention to issues in the field
If at first you could think of a limited interest to multinational companies, largely due to reasons
of image, or need to move (ZTL and exemptions for Euro 4), now is found to extend a real
attention to the environment "on the fleets also in smaller companies and public administrations.
The supply of market participants engaged in supporting the "green car policy" of enterprise
customers today is oriented towards the placing on fleet of environmentally friendly vehicles
(mainly feed bifuel and hybrid), monitoring of emissions of the fleet and identification of
solutions for reducing their environmental impact, provide advice for the new construction of a
fleet that meets the parameters sustainable, safe driving courses, and low power consumption .
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The long-term rental is
Among the customers of long term rental, fleet remains stable part of Public
Administration (about 20 thousand between ministries, local government, regions, provinces
and large municipalities) that now constitutes 2% of turnover in the sector.
Important aspect is the sharp jump forward (+15%) of all registrations, the result of the
aforementioned excess of the 'uncertainty tax "that had clouded the 2007 and 2008.
This is, without doubt, a further element for which the customer is aware of the many
financial benefits, economic, managerial and administrative aspects of hiring, having opted
in 2007 for contract extension and reshaping of services and assistance, in 2008 confirmed
the preference over other modes of acquisition of the vehicle.
In early 2008 the management services of vehicles owned by others (fleet management)
have kept score positive indexes: +8% and +5% in revenues for the vehicles operated.
These services are administrative (management and payment of fines, payment of fees,
claims management) or relative to handling, washing and even insurance and vehicle
On the market, there is an increase in the number of operators that offer fleet
management and it is confirmed that the flexibility on the supply side of the industry
attests to the diversity, but also the tendency to provide packages of services contained in
client companies that choose different vendors to manage their fleet.
Estimates of the end of the year confirm the trend of the first half and foreshadow a
closure of 12 months largely positive (+8%).
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Luxury cars: a growing segment
in the charter
Rental of luxury cars is used in situations as:
- special occasions like a wedding, hen parties, celibacy
and events - for business transfers and business travel -
branding services in order to promote social and
corporate identity of a Company.
Unlike the short-term hiring of cars on the lower
segment where the recession is obvious, the field of
luxury cars in the last two years has seen a trend of
double-digit growth (+25%).
The reasons have already been indicated in previous
pages, adding that the tightening of fiscal controls and
exacerbating further this growth.
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Cars, private jets but also villas and Yacht: This
offer of Milano Elegance for rental short or long
The intelligent use of luxury goods is the primary
philosophy behind the success of this dynamic
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The second element of success of this company is its ability to adapt their offer and work
with customers, which is derived by the offer of a rental service in the long term.
The company in fact offers a “full comprehensive” service.
The control center of its headquarters in Milan, in fact, Milano Elegance collects real-time
information on cars currently in use, for each of them the company can:
record the actual amount of time of use;
reduce the risk of any failures, knowing when they need preventive maintenance, and this in
turn reduces the risk that the car is still outside the program, avoiding the resulting
inconvenience to customers, enabling better planning of rentals;
in case of emergency, to quickly send a technical team at fault and collecting useful data to
improve their next rentals.
It 'also important to note that in the automotive producers located very convenience in
maintenance and spare parts: a little' as with razors and razor blades, the producer of
engines for cars, not so much gains from the sale of the motor, but its maintenance and the
sale of spare parts.
But with its own system, Milano Elegance has brought this concept to a higher level: not
selling razor blades and then, but the beard makes directly to their customers every
And this translates into unparalleled management control and Milano Elegance can therefore
offer our customers very competitive rates.
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That of Milano Elegance is a system that primarily poses a
high entry barrier to competitors, who can not compete
with a service of this type, which strongly customer loyalty.
This barrier is also much more effective than those based
solely on the financial offer or the variety and/or
technology, but in fact subject to constant evolution (the
ultimate solution is more or less replicated by competitors
after two to three years in this sector).
Secondly, this business model once again emphasizes the
need to tailor the service to the actual needs of the
customer, leveraging existing support for any technology to
assist in its activities.
The rental companies have understood this: who knows how
long will it productive, and customers themselves to grasp
the concept of service in the long term ...
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We are a senior consultant at the Department for
Development and Competitiveness of Tourism Ministry
of Italian Tourism;
We have the expertise to help you in promoting your
product, be it a service or an enterprise in Italy and
We also deal with the disclosure of your advertising,
not only through the "usuals" channels, but check the
possible variants of distribution with new
methodologies in co-partnership and paying attention
to new marketing techniques;
We study and realize the marketing plan and in
agreement with you will follow the correct application;
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