At what percentage do rental vehicles typically depreciate?

• A. 2.5%
• B. 1.7%
• C. 3.0%
• D. 0.5%

Answer: (B)

Rental vehicles typically depreciate at a rate of about 1.7% per month. This figure reflects the relatively rapid decrease in value for rental cars due to high mileage, frequent use, and wear and tear from diverse drivers. The rental industry often cycles through vehicles quickly to ensure a fresh inventory for consumers, contributing to the specific depreciation rate observed.

The choice reflecting this percentage signifies a realistic reflection of market trends, where the depreciation rate is not as steep as in the earlier months of ownership, but remains significant due to the nature of rental services. A focus on this depreciation rate is crucial for understanding fleet management practices and financial forecasting within the automotive rental sector.