The Detroit News reports that The Big 2.8's decision to trim fleet sales is jacking-up prices down at the rental car lot. The cost of renting a car has jumped more than 20 percent in the past two years, heading for a five percent upwards jolt in '07. Manufacturers are also modding the product mix, cutting back on the dirt-cheap manual everything models the average Budget, Avis and Hertz renter has "enjoyed" in years gone by. By selling higher-priced, better featured cars, the Detroiters hope today's rental car will be tomorrow's not-so-dirt-cheap retail sale. Meanwhile, if you're not buying this explanation, if you're skeptical about car rental pricing policies, join the folks over iAfrica.com, who believe the industry is rife with "collusive and monopolistic practices."
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Perhaps that will open the doors for car-sharing outfits like Flexcar and Zipcar.
It was to be expected that prices would go up, the instant Detroit signaled that they would rein in their fleet sales to daily rentals, and alter the product mix.
They have Flexcar or something similar in Atlanta here… I looked into it once and it is very expensive. If you need a car for a day, you’re almost better off getting a rental for the prices they charge. For short trips here and there, I’m sure it’s a decent choice for your average car-less college student, but for anyone else (especially considering how long it takes to get anywhere around here) it’s not the best choice.
The idea that a rental may also be a test drive is not new but is unproven. Having said that I have been impressed with various rentals I have had over the years including a Mazda 3 and 6, BMW 120d and Golf TDI (both in Europe) as well as a Honda Civic. Would I have considered any of these for ownership without having rented them first? Probably not.
The last time I rented a car, I got a Toyota Corolla. It was a lot more expensive than the fairly well equipped Chev Malibu I rented last year. As ugly as I subjectively think the Malibu was, it was a better car (for the purpose) than the Toyota.
When the rental companies start buying Chinese cars will the prices start going down again?! I kind of doubt it! (Wonder if they’ll include St Christophers for free? – we’ll need every bit of help we can get with 1-star crash rating potential rental-wrecks).
Do we now equate prices of renting in Africa equel to the States? Those darn domestics!
Glenn: That’s an interesting point. I wonder if the Chinese makers would go after fleet sales to build volume, and what the domestics would do if they couldn’t place a bunch of cars in that market because of (what they would call) dumping?
Jim
cfisch:
Do we now equate prices of renting in Africa equal to the States?
Practices, not prices.