REPORT: Prepare to shell out a lot more for your next rental car

Chris Shunk — Wed, 01 Jul 2009 19:28:00 EST

Hertz Fun Collection Chevrolet Corvette ZHZ - click above to enlarge

The economy is in one of the deepest recessions in decades, and one pleasant side-effect of fiscal woes is that many companies are offering huge discounts to get you off the consumer sidelines. One industry that hasn't gone that route so far is the rental car industry. Abrams Consulting Group tells The New York Times that the cost of a week-long rental went from $199 in May 2008 to $345 this year; a 73% increase. The news hasn't gotten much better for June, as the prices went up 65% from $210 to $347. If car rentals are down 15% on the year, why the increase?

The reason for the jump in prices is that there are fewer vehicles to rent, as companies like Hertz and Avis have cut back on the amount of vehicles that they're buying. They're also selling vehicles to used-car starved dealerships. The result of smaller fleets is customers paying more for the cars and trucks that are left. And since customers have become accustomed to getting their rentals at the last minute, some aren't getting a rental at all.

To beat the car rental blues, The New York Times suggests that you start your search earlier. Not getting a rental from companies at the airport is also a good idea, as off-airport companies don't have as much demand. Sites like Priceline and Expedia also generally offer discounts over retail.

[Source: New York Times]

REPORT: Prepare to shell out a lot more for your next rental car originally appeared on Autoblog on Wed, 01 Jul 2009 19:28:00 EST. Please see our terms for use of feeds.

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Enterprise sees increased rental demand despite higher gas prices

Joel Arellano — Wed, 17 May 2006 19:07:00 EST

Filed under: Trends, Earnings/Financials

The New York Times interviewed Andrew C. Taylor, chairman and CEO of Enterprise Rent-a-Car, to see if he expects gas prices to affect his company's services. Taylor actually expects the opposite, predicting more Americans will be traveling on the road this summer than last year, with many demanding a rental vehicle. According to Taylor, customers focus on more convenient vehicles for their trip than gas prices, renting larger vehicles such as SUVs to carry extra luggage, etc. Of course, he acknowledges that people may be more likely to request smaller cars when driving solo or with few pieces of luggage.

Other issues discussed were the off-airport market trend, availability of "green" vehicles, and demand for technologies such as GPS. More details and link to the extended interview can be found at the link.

[Source: New York Times]

Enterprise sees increased rental demand despite higher gas prices originally appeared on Autoblog on Wed, 17 May 2006 19:07:00 EST. Please see our terms for use of feeds.

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