The demand for car rentals is higher than at any time this season, the NY Post says.
The average cost of a daily vehicle rental reached an all-time high of $63.75 in March, a 50% rise in some regions, according to figures obtained by Jefferies, the New York investment firm.
The economy is roaring back to average con; summers are between high demand and a shortage.
Fox Business Network reports that car demand has been high for months because of a shortage of microchips and an exploding demand for copper. However, supply has decreased since rental car companies have reduced their fleets in the aftermath of the epidemic to cut costs.
However, the recent spike in rental prices is a phenomenon that’s not been seen before, according to Jefferies Analyst Hamzah Mazari, who’s been monitoring the rental costs of Avis, Hertz, and Enterprise since t015.
The average daily Price for Avis increased to $68.07 in May. This is 50 more than the average price the company charged from 2015 to 2019.
Avis’s median Price climbed between $81.59 and $94.51 in June and July, and it is currently hovering around $103.40 for August.
Hertz, as well as Enterprise, are also experiencing similar increases.
Mazari believes that prices won’t fall until next year when new cars are produced, and rental companies can increase the number of vehicles in their fleets.
As of now, Mazari says, “You may see consumers resort to mass transit.”
CSpecificconsumers have already done this.
Brooklyn, NY, resident Gordon Price says he used Uber for his entire trip to Puerto Rico because every car rental service was booked. However, he managed to locate aaKIA Sorrento for $400 daily.
“I was not amused,” Price stated. “I also wasn’t paying it.”
