How Local Residents Use Budget Car Rentals as a Second Vehicle

Car rental is traditionally associated with tourists, travelers, or business trips.

However, in recent years, there has been a steady trend: more and more local residents are resorting to car rental services, not for the sake of travel, but as a convenient, flexible, and economically viable replacement for personal transport. This approach is especially relevant in cases of temporary absence of your car, whether it is mechanical repairs, sales, or waiting for the delivery of a new vehicle.

Local tenants are becoming a special category of clients.

Unlike tourists, they are not limited by the timing of flights and accommodation reservations, and therefore often demonstrate less “rental discipline”. This creates certain risks for rental companies. It is no coincidence that, according to industry statistics, about 92% of all cases of “theft by hirer” are committed by local residents. Insurance companies, in turn, impose additional requirements, such as mandatory double identity verification (multiple documents, proof of employment, etc.), without which insurance coverage may be invalid.

Situations where local car rental is necessary

Nevertheless, there is a whole range of situations where renting a car for a local resident is not only justified, but also necessary. For example, a short-term rental may be associated with a visit from relatives, a trip outside the city when one’s own car is not trustworthy, or if the car is under repair. In these cases, the client knows the exact rental period, which reduces the level of uncertainty and makes him similar to a tourist in terms of the reliability of the fulfillment of the terms of the contract.

Uncertainty with accident-related rentals

On the other hand, renting a car after an accident or while waiting to buy a new car is accompanied by a high degree of uncertainty. Customers cannot accurately predict the end date of the lease: the timing depends on the delivery of spare parts, weather conditions, staff availability and other external factors. It is especially difficult when it comes to replacing a damaged car. There are four possible options here:

• The tenant is guilty, and he pays the rent himself.
• The client has insurance with the option to replace the vehicle.
• Insurance does not cover the replacement due to an unsigned option.
• The client is the injured party in an accident and can receive compensation from the insurance company of the other party.

Flexibility of rental terms

In all these cases, transparency and flexibility of the lease terms become key. Car rental companies, realizing the complexity of the situation, are accommodating: offer a fixed “daily renewal rate”, give a guaranteed refund for unused rental days subject to prior notice, and actively cooperate with insurance companies to provide “rent without payment” if the conditions are met, the presence of an insurance policy from the guilty party and the official recognition of their responsibility.

Features of passenger car rentals for locals

Passenger cars used by local residents, as a rule, are not equipped with traction devices and are intended exclusively for urban and suburban use. An important role is played by the day-to-day rental policy, which provides flexibility and simplicity when extending the term. Renters appreciate the opportunity to get a car for a short period of time and at the same time not be burdened with long-term lease obligations or additional fees for term changes.

Conclusion

Thus, renting a car for local residents is not just a temporary possession, but a tool for effective management of transport accessibility in conditions of uncertainty. With proper organization of the process and compliance with the requirements of the insurer, such a lease becomes profitable for both the client and the rental company. In an environment where flexibility, cost predictability, and the ability to quickly replace a vehicle are becoming more important than ownership, the short-term rental model is becoming increasingly recognized locally.