Car hire

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Updated: Aug 20, 2021

There are three kinds of car hire business: (1) the taxi business; (2) the businesses which hire cars for specified periods at an agreed rate, normally based on time and mileage; (3) a variation of (2), the organizations which put cars at the disposal of customers at particular places and for specified purposes. These customers may then leave the cars at agreed places at the end of their journeys, for example: a businessman arrives at London airport, takes a self-drive car for the remainder of his journey to Glasgow, as planes are grounded. The car is then collected at Glasgow by the owners.

Car hiring in this third sense should be distinguished from car rental, where a person. rather than purchase a car. rents one on a permanent basis. He does not own the car but enjoys all the privileges of ownership. The charges and responsibilities will depend on individual contracts. The car is usually replaced at specified intervals.

Reference: The Penguin Business Dictionary, 3rd edt.



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James Knight
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James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.