This article is writing after the request of many customers and dealing with large number of Query about what will be our cost of Renting a Van For our Northern area Trip. I am writing this article after detail analysis of our past trips to northern areas and in the light of actual costing data which we record during our Trips to northern area from last 3 Months.
After public discussion people complain that car rental company many time provide wrong budgeted figure for our Trip to northern area, when we compare it with actual there is large difference.
I want to give answer of above question that is “providing wrong budgeted figure” . First thing we need to understand what is the basis upon which this budgeted figure is constructed and second the Division of budgeted Figures For Example.
% of Vehicle Rent
% of Fuel Cost
% of Driver Food
% of Tool Tax
When we get this detail for car rent service Provider Company you will be better understand where the actual difference occur. Vehicle Rent, Driver Food and Residence is the fixed cost, Fuel cost and Tool tax cost is variable cost
Two variable costs Fuel cost and tool tax costs are the main reason of variance.
Car Rental company calculate Fuel Cost by considering vehicle average per liter, Actual Fuel cost, No of Km Travel. For example if Fuel cost is Rs 95 Per liter then per Km Cost of Hiace van Will be (95/6=Rs 16 Per Litter) and Total For your 1500 km Travel Rs 24000
Rent a car Lahore company will give you cost Rs 24000 by considering Fuel cost Rs 95 Per liter. But when you go to naran or cross Naran the fuel cost is totally different our historical data shows that our vehicle get Fuel at these areas at Rs 140, 150,160 Per Liter due to this difference in prices your actual cost differ largely with provided budgeted figure.
So we can conclude that the main reason of difference in the Fuel Price. I suggest make your budget in two to three tires Like at Rs 160, 150,140