Beijing's car rental companies have suspended their limited travel distance policies for Spring Festival rentals, but lease prices may double or triple, industry insiders told the Global Times yesterday.
Under a standard car rental policy, daily travel is limited to between 200 and 300 kilometers, and extra fees are applied for anyone who exceeds such a distance. The new policy has suspended the limitation, but upped rental fees.
Renting a sedan for one day during Spring Festival now costs 349 yuan ($55), up from the normal 109 yuan, a customer service employee, surnamed Li, with China Auto Rental said yesterday.
"Vehicles belong to the category of consumable goods and need regular maintenance, this increases costs for rental companies," Li explained.
In response to the change, consumers are going to smaller, less trustworthy dealers in order to rent a car for the holiday.
Zhang Shangzhi, an IT professional working in Beijing, rented a sedan from a small company near the North Fourth Ring Road, and plans to drive home to Jingzhou, Hubei Province.
"Unlike big car rental agencies, small companies are more flexible with bargaining," said Zhang, who is paying just 150 yuan per day for the vehicle.
Despite price hikes, the business of car leasing seems to be booming this year.
"We started holiday bookings last October, and by the year end, 85 percent of our vehicles were booked," Shao Wei, publicity officer of eHi Car Service company told the Global Times yesterday.
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