Call to end Bahrain's thriving illegal car rental business
TDT | Manama
The Daily Tribune – www.newsofbahrain.com
Commercial car rental operators in the Kingdom are urging the authorities to put an end to illegal car rental businesses, mainly run by expatriates, which according to them is now “thriving”.
They said, if uncontrolled, the trend would eventually put a full stop to the car rental business in Bahrain.
Speaking to The Daily Tribune, Abdul Rahman Abdul Waheed, Branch Manager of We Rent A Car, a leading car rental firm, said: “We are running the business by strictly adhering to rules and protocols set by the Traffic Directorate and the Transport Department.
We have to regularly pay fees to different departments apart from insurance expenses and such a trend would destroy this segment.
“There are many open advertisements across social media platforms posted by illegal car rental service providers.
Many are entering the scene as they stand to gain huge money without adhering to any regulations.
“All of them are renting out their cars only after obtaining third party insurance, which is nothing but putting passengers and drivers at the brink of financial risk.
Legal car rental companies will have to abide by many norms, including selling their cars after using them for five years.
But no rule applies to these illegal guys.”
Waheed asked how such an illegal business could thrive when a driver giving a lift to strangers constitutes a legal violation.
Speaking on the same tone, Rajesh Kumar, Front Desk Staff at Prestige Rent A Car, another major car rental firm, said the trend is flourishing at the cost of legal car rental businesses.
“The authorities should probe why an individual making BD250 or BD350 a month is buying five or six cars.
They are destroying the entire business segment,” he said.
“We, as a company, obtain CR before starting the business.
Then pay fees to many government departments as part of legal adherences.
How could we compete with these illegal people, who have no rules to follow?”
Kumar said most of the people, who run illegal car rental businesses, reduce the rental rates, in turn causing great difficulty for the commercial car rental and leasing companies to survive in the market.
“Many expatriates, while going on vacation, rent their cars out for BD100 or BD150 a month and they think it is legally fine.
They are unaware of the consequences or serious legal violations they are committing,” Kumar said.
He expressed hope that the authorities will start the clampdown once the association of commercial car rental operators bring the matter to the government’s notice.
Ruzbeh Engineer, Deputy General Manager of Avis Bahrain, a top car rental firm in the Kingdom, said he was not fully aware of the trend and would only comment after learning in detail about the issue.
Another commercial car rental firm executive, who doesn’t want to be named, said those who rent cars through such illegal channels must also be penalised.
“The beneficiaries of these illegal activities should also be punished along with those engaging in it.
And this seems the only way to curb it.”
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