Why Are Rental Cars so Expensive?

If you’re planning a trip to Daytona Beach in the near future and plan on renting a car, you’ve more than likely noticed something- high prices. Why are these cars so expensive to rent? Is there another option? Let’s look further into the reason behind car rental rates, as well as a better option for your upcoming Florida trip.

 

Table of Contents

  • How Much Does a Rental Car Cost?
  • Why Are Rental Cars so Expensive? 
  • Car Shortage
  • Chip Shortage
  • Daytona Beach Rental Cars

 

 

How Much Does a Rental Car Cost?

Kelly Blue Book tells us that in 2019, the last pre-pandemic year, the average cost for a rental car in the U.S. cost about $51 per day. This summer, in 2022, the same car costs about $96 per day. That’s quite an increase in the cost to rent

It’s important to note that we’re not alone. The same article tells us that in Spain, prices have jumped from $23 pre-pandemic to about $72 today. In the U.K., a rental car cost has gone from about $37 before COVID-19 to $83 today. In Canada, the average rental price has nearly doubled since 2019.

 

Why Are Rental Cars so Expensive? 

Why Are Rental Cars so Expensive? 

The question becomes, why? What is the reason behind the higher price? The main reason behind it probably won’t surprise you. The bottom line for the price hikes is that the COVID-19 pandemic led to a shortage of rental cars. The rental car company has a fewer number of cars to rent and so they cost more; it’s simple supply and demand economics.

 

Car Shortages

When you arrive to pick up the cars, you may notice a lot of empty parking spots. There are car shortages all throughout the auto industry. When the COVID-19 pandemic hit, most rental car companies knew we wouldn’t be traveling for a while and sold off large portions of their fleets in order to avoid the expense of maintaining vehicles no one wanted to drive. At the same time, car manufacturers slowed or even stopped production. This led to less new cars in general and quite a few car rental locations without a full fleet.

 

Chip Shortage

That’s not all. A worldwide microchip shortage has also halted production for automakers. The chips they do have are being used to build higher-margin, more expensive vehicles. That means fewer of the inexpensive, bare-bones models many rental companies use for their fleet.

 

 

Daytona Beach Rental Cars

Daytona Beach Polaris Slingshot Rental

Many auto industry experts recommend you get creative with your rental car this summer. We agree! With a credit card and a valid driver’s license, you can rent a Polaris Slingshot! This may not be the type of car you can put a car seat in, but it’s perfect for one or two people cruising the beach. 

When you rent one of our open-air vehicles, you will have unlimited mileage. You’ll be able to go anywhere in the Daytona Beach area you want, from the beach to the highways. Plus, it’s a fantastic way to save money because our rentals are less expensive than other options. Once you rent a Polaris Slingshot for the first time, you’ll never go back to driving boring sedans or bulky SUVs on vacation again!

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