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Lotus Rental Cars - Research Paper Example

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The whole arguments have arisen because of ecological benefits which electric vehicles promise to bring. Electric cars are much safer for the environment since…
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Download file to see previous pages However, electric cars are more expensive than fossil fuel and hybrid cars due to the technological peculiarities. Therefore, buying electrical vehicles for business is a risky enterprise. Even though hybrid and electrical cars are more expensive than gas engine vehicles and company might lose profit, adding hybrid/electric cars to the company’s fleet will be a good investment for the enterprise which gives cars for rent.
Accurate assessing of the situation and finding the right niche may give benefits to such a company as Lotus Rental Car CFO if the company decides to use electrical cars along with conventional. First of all, the benefit is connected to a reduced amount of costs spent on fuel. Among the clients of rental car offices people on business trips are the most frequent followed by tourists. Most employers that send their employees to business trip will rather pay extra dollar to rent a fuel efficient car like a hybrid than reimburse their employees for gas. Savings for the money on electricity are much more persuasive compared to fuel savings. It was estimated that driving about 15 thousand miles will cost for about $500 annually taking into account existing prices for electricity in the USA. The same distance will require $1900 for a gas engine. So it is possible to cover high prices for the electric car with money raised by fuel economy. And this argument will be important for those who take car for a rent. Electric /hybrid cars are perfect for rent because the driver can calculate his/her distance in advance and charge it at the company`s office and in several other places(Electric Vehicles, 2013). Maximum time that allows driving without extra recharge is about 8 hours now, and most people who rent cars especially for business trips plan to cover the distances which are not so great. However, it is important to understand that electric cars differ ...Download file to see next pagesRead More
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