Why is Renting a Car Becoming So Expensive?

Rental car prices have been on the rise due to a combination of the coronavirus crisis and a shortage of chips. This has caused an imbalance between the high demand for rental cars and the limited supply available. Car rental companies use dynamic pricing to adjust their prices in response to the market, meaning that as more people try to rent cars, the prices will continue to increase. To avoid paying too much for a rental car, it is important to book as soon as you are considering traveling somewhere.

Additionally, it is best to avoid certain areas that are popular tourist destinations. It is likely that the current reduction in the supply of rental cars will last for at least a year or two due to supply chain issues. One way to save money on car rentals is to think outside the box and consider renting a cargo truck. This requires a driver's license and one of the main credit cards, but it can be done through a mobile application with a monthly or annual membership. Home improvement stores also offer truck and van rentals at an hourly rate, and carpooling services such as Uber and Lift are always an option. Car rental companies usually rely on the automotive industry for their stock, but this has been made difficult due to the global chip shortage.

If you are renting cars for work, you may be able to use your company's corporate rate for personal trips as well. The cost of renting a car depends on factors such as the type of car, duration of rental, and location.