Security deposits have traditionally served as a reliable means of protection for vehicle owners against damage or fines for traffic violations during the rental period. Increasingly, however, customers are hesitant to book a car under this system for fear of personal information leaks, unsecured payments, and digital fraud. In addition, local laws can cause money to be locked up for an extended period of time, which only adds to tenants' concerns about providing upfront deposits.
GetRentacar predicts that the short-term car rental industry will adapt to the needs of renters in the coming years.
The company has developed and plans to implement a new payment model that eliminates the practice of freezing customer funds, both during and after the end of the rental period . Based on its own data, the platform concluded that many customers cancel bookings at the final stage, namely at the payment stage, due to excessive deposit amounts that are several times higher than the rental price.
The security deposit is intended to protect owners from potential losses resulting from renters exceeding the mileage limit, damaging the vehicle, or being charged for traffic violations. But tenants do not want their funds blocked in their accounts while traveling abroad. To solve this problem, the platform offers a profitable solution.
Now the tenant has the opportunity to either make an advance payment, as before, or slightly increase the cost of daily rent. By adding an additional option to their personal account, customers can now choose to rent without making a deposit. In this case, all financial obligations, which in which case the deposit could cover, are assumed by the financial partner. The owner does not incur any costs, he is “insured”, as the cost of financial guarantees is automatically included in the rent.
GetRentacar currently operates in more than 100 countries around the world.