Choosing Wisely: Rental Cars or Personal Vehicles for Business Travel

The way we work has transformed in recent years. Many companies now embrace a hybrid model, blending fewer days in the office with time spent working from home. More employees are now taking short trips to attend essential meetings. And with local and domestic business trips on the rise, many business travelers are opting to use their own vehicles, according to independent research* conducted on behalf of Enterprise MobilityTM, whose portfolio of mobility offerings includes Enterprise Rent-A-Car® and National Car Rental®.

But is personal vehicle use really in the best interest of your business and employees? Here are three ways in which renting a car for business use may be the smarter choice.

Safety and Company Image

Employees use their personal vehicles for 51% of business trips, while rental vehicles account for 44% according to the research. Yet the personal vehicles that workers are using for these trips are getting older: the average vehicle age has increased to 14 years in the U.S., nine years in the U.K., and 10 years in Germany**. With age comes wear and tear – and greater risk, as older vehicles run on outdated technology and are more likely to experience maintenance issues.

While vehicle owners around the world vary widely in how well they maintain their cars, lax upkeep can be a factor. For example, one in five U.S. car owners say they are behind on both oil changes and tire rotation, according to CARFAX dataŦ, which may heighten the risk of mechanical failure, accidents and insurance complications. In France, fewer than half of workers who use their own cars for business trips say they regularly have their brake pads checked or tires rotated, according to Opinium Research. 

“Ensuring employee traveler safety is our main concern, and relying on older personal vehicles that may not be well maintained can jeopardize that,” says Mike Guadagnoli, Vice President of Global Business Rental Sales for Enterprise Mobility. “Rental cars equipped with the newest technology and standard safety features can help reduce risk and better fulfill Duty of Care.”

Older personal cars may also present reputational risk to your employees and business. Showing up to an important meeting in an old or damaged vehicle can create a negative impression. One in five French business travelers say they have been late to a meeting due to maintenance issues with their personal vehicle.

Cost Avoidance

Analysis conducted with current Enterprise Rent-A-Car clients reveals that for business trips exceeding 100 miles, renting a car is generally less expensive than driving a personal vehicle. Car rentals also eliminate the hassle of mileage reimbursement. And because mileage reimbursement can vary compared to pre-negotiated corporate rental rates, many companies can net savings on the miles the business is paying for. Renting also provides greater predictability when tracking travel costs through pre-negotiated rates and insurance coverage, benefiting both the business and employees.

Convenience and Employee Satisfaction

Integrating vehicle rental into your travel policy can help promote safety, cost-efficiency, and convenience for your employees, while reinforcing your company’s reputation for taking care of its people and its resources.

Enterprise Rent-A-Car and National Car Rental have an extensive network of locations in more than 90 countries and territories including at airports, train stations, and in neighborhoods, making renting convenient no matter where your employees’ work takes them. In fact, there is an Enterprise location within 15 miles of 90% of the U.S. population and within 20km of 94% of the U.K. population, giving employees the opportunity to pick up a rental car close to home and drive to their destination with minimal extra effort. Our rental fleet includes more than 1.5 million vehicles, comprising 300 makes and models, so they can access the right vehicle whenever they need it.

*Research was conducted by global market research firm Ipsos on behalf of Enterprise Mobility in July 2023. N=3,016 business travelers from the United States, United Kingdom, and Germany (approximately n=1000 per country). N=600 decision makers for B2B travel/mobility (working in HR, Business travel management, Procurement, Finance), n=200 per country. For the business decision maker sample, no weights were applied to this study, and the findings reflect the opinion of these respondents only.

**U.S. source: S&P Global Mobility 2024; U.K.: SMMT 2024; Germany: KBA, & Die Zeit 2023

ŦSource: https://www.prnewswire.com/news-releases/carfax-data-its-scary-how-many-americans-are-behind-on-car-maintenance-301971428.html