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Three Tips for Choosing a Rental Car Company in China

2018-09-19 10:18 Wednesday

In the wake of explosive growth in the Chinese auto leasing market, consumers are now confronted with a wide range of rental car companies to choose from.

According to the 2017 Report on Auto Leasing Industry Development by the Qianzhan Industry Research Institute, at the end of 2017, the total transaction volume of the Chinese automobile leasing market had reached 73.5 billion RMB, including more than 12,000 rental car enterprises with registered capital in excess 500,000 yuan.

In spite of rapid development in recent years, the industry is still in its infancy. Most automobile rental companies are small, vary in management structure, and rely on privately-owned vehicles. Thus, it is of the upmost importance that consumers are aware of their rights, and exercise due diligence when choosing a service provider. Below are some criteria that consumers should follow:

rental car companies

1. Choose a rental company with developed procedures and a responsible management framework

Before leasing a car, consumers should pay attention to the management of the company, the contract terms, clarification of terms, and evidence of effective problem-solving procedures on the part of the company. The terms from an informal company are often unclear and usually such companies are unequipped to handle emergencies. Therefore, choosing a company with a well-developed management and problem-solving infrastructure is key to ensuring dependable service quality.

2. Don't choose a rental company solely based on low rates

In the car rental market, the rates from smaller companies tend to be 10-20 yuan cheaper than those for larger companies. Smaller companies do not invest heavily to guarantee the quality of rental services, meaning that in the event of a car accident or need for maintenance or repair, the company does not respond in a timely manner. The hidden risks associated with this can outweigh the money saved by lower rates.

3. Check the name on the vehicle license of the leased car

Rental cars are usually privately-owned vehicles, and the name on the license is the private owner, not the car rental company. The biggest danger to consumers is that private cars are self-driven vehicles with low premium rates. If there is an accident during the lease term, the insurance company can refuse to pay for it on reasonable grounds, with it then falling on the lessee to bear all of the related losses. Therefore, before signing lease agreement, it is highly recommended that you repeatedly check the vehicle's license documents and inspection certificates.

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