The peak summer periods often cause issues for car hire companies in terms of vehicle availability, but this year looks likely to be worse. Anyone looking to hire a car this summer is advised to book early to avoid disappointment and possible rising car hire charges.
The reason behind this problem lies with how rental companies run their fleets. Cars are taken on in one of two ways. The preferred method is on a guaranteed buy back from the manufacturer. This is where the manufacturer agrees to take the car back at an agreed age and mileage and in a certain condition. In the past this was great news for the manufacturer as lots of nice easy registrations and, with a newish car, the chance to get it out and seen on the road; plus it generates some nice nearly new stock. The rental companies liked this as they didn’t pay for the depreciation and had nice new cars. The second way is where the car hire company buys the car and then disposes of it themselves. The manufacturers have had to give some eye watering discounts to make this work in the past so the daily “holding” cost of the car allowed the rental company to run its business and make a profit
Both methods cost the manufacturer a lot of money and as the economy has bitten they are less ready to dig deep. They are also all cutting back on production in order to avoid creating excess stock, thus tying up precious cash reserves in idle metal. This naturally leads to fewer cars being made available to the rental companies and could also start to push prices up
Add the scarcity of cars to the peak periods and it is clear to see that some people may find themselves disappointed if they leave hiring their car to the last minute.
Don’t think this will lead to free upgrades. The rental firms with fewer cars available to rent out will want to ensure they maximise their revenue
Book early to avoid disappointment. It obviously makes sense to book early as at least you then have the peace of mind and you know your holiday transport is sorted. You may also feel more comfortable booking with a larger rental firm as they tend to be part of an even larger group and so have better access to a larger pool of vehicles.
I know this sounds a bit like us drumming up business but you don’t have to hire a car from us. We aren’t alone is sharing this message and we DO think it will only get worse
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What others are saying:
http://www.holidaytruths.co.uk/viewtopic.php?f=24&t=135035
http://www.pastymuncher.co.uk/hire-car-shortage/
http://www.ttglive.com/c/portal/layout?p_l_id=61139&CMPI_SHARED_articleId=2456766&CMPI_SHARED_ImageArticleId=2456766&CMPI_SHARED_CommentArticleId=2456766&CMPI_SHARED_ToolsArticleId=2456766&CMPI_SHARED_articleIdRelated=2456766
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