NDR: Anyone have thoughts on why car rental rates are so high?

[Shasta_man]

This is related to diving for me because I'm renting cars to get to the airport to go on dive vacations.

I'm seeing that daily rates, plus taxes are $100+. Cheapest.

Check out any day for SJC or SFO. Minimum rates are like $80-$100. FOr example, to drive home from SFO in mid November is $180 for an economy car. For comparison, a limo is about $175 plus tip.

I'm not asking for travel solutions. I'm just wondering why rates that used to be easy to get $25-$40 are now all $85 plus. It's not taxes because taxes are on top of that. This is not across the US because I see other rates while not great are maybe $50.

Just wondering if anyone knows why the agencies are doing this.

 

[urmaddad]

I think that it has to do with liability insurance, law suits, and trial lawyers.

 

[Damselfish]

some places they clobber you on daily rates, or if the drop off location is different

 

[ianr33]

some places they clobber you on daily rates, or if the drop off location is different

Agreed. The rates for one way rentals are usually a LOT more expensive.

 

[ryssyr]

because they can. it has nothing to do with demand or liability, they know that if all vendors raise rates in proportion the customers dont have anywhere else to go.

 

[Shasta_man]

Apparently only #5 is the right answer since I'm not doing any of the other things.

 

[JustinW]

I worked at a car rental company I'm ashamed to admit but I set rates and we all know exactly what we are doing when we set the rates. It's all done with computer pricing software and all the companies have access to the data. It's damn close to conspiracy. Basicly yeah it is all based on demand. At just off airport sites on a weekend you can get that same car for $30 a day just a mile away. Rates at SFO will be crazy, but the rates for the rental car place by the closest body shop will have vehicles really cheap. Thats why insurance companies only pay $20 a day or less, they can operate on way less. I tried to maintain my costs as a manager at no more than $9-10 a day, the rest was profit, and even more so on the SUV's.

One Way Rentals are difficult logistically for rental companies because they constantly have to move vehicles. (one ways generally go more one direction than the other)

Companies like Enterprise are constantly paying out multimillion dollar lawsuits for labor laws or harassment suits involving middle management, taxes are going up at airport locations as municipalities transfer the tax burden to tourists from residents. The US auto manufacturers have taken a severe beating that affects the availability of new cars and the resale price and volume of used cars. Rental companies are seeing reduced demands and smaller fleets giving them fewer cars to spread costs to while at the same time getting squeezed on both ends when they fleet a unit in or out.

Sucks to be a car rental company today, but they make sure they pass the suck right on to the consumer.

 

[Damselfish]

Apparently only #5 is the right answer since I'm not doing any of the other things.

aren't you renting a car for just a day and then dropping it off someplace different than where you picked it up?

 

[djtimmy77]

Get a cab and rent off-site. expect to pay 20-30% less off the bat simply due to not having the airport taxes and fees, and generally the rental is cheaper overall. At expensive airports you can typically save 50% that way.

 

[ReefHound]

Get a cab and rent off-site. expect to pay 20-30% less off the bat simply due to not having the airport taxes and fees, and generally the rental is cheaper overall. At expensive airports you can typically save 50% that way.

He is renting off-site and driving TO the airport to go on vacation.