Modeling the Purpose for Renting Passenger Vehicles

Abstract

This article specifies and estimates a multinomial logit model (MNL) to explain the purpose of renting a vehicle for short-term use. The model, which predicts the probability of renting a vehicle for business, leisure, temporary replacement, or other purposes, is estimated using a random sample of approximately 1,000 individuals from 10 Canadian provinces. The records used in the analysis were collected in 2016 via an online survey. The findings suggest that the purpose for renting could be predicted through factors associated with the sociodemographic characteristics of the renters and their rental plans, as well as attributes associated with the rented vehicle.