Will car rental prices go down?

Finally, memberships such as the AAA, AARP and alumni associations often include negotiated car rental discounts as a benefit. Of all the things that have experienced huge price fluctuations during the COVID-19 pandemic, rental cars recorded one of the biggest, and that fluctuation went directly up. It's reasonable to expect the current reduction in the supply of rental cars to last at least a year or two. With airline ticket prices and car rental prices, it's getting cheaper for some summer vacation travelers to skip both altogether and drive to their destinations in their own cars, faced with high gas prices.

As long as that company doesn't charge a cancellation fee (most car rental companies don't), then cancel and rebook the same rental. These companies work like a kind of AirBnB for renting cars; owners (“hosts”) advertise their rental cars and drivers book them through the car-sharing company's website or mobile application. In addition, some rental companies are still suffering from staff shortages after closing some locations early in the pandemic. Popular vacation rental models, such as the highly sought after Jeep Wrangler, now cost hundreds of dollars a day, even if travelers book them weeks in advance.

As travel begins to pick up despite the reach of COVID, more people may have to find similar alternative rental methods until at least next year. NerdWallet conducted an analysis of 360 rental car prices (including taxes and fees) to better understand rental car price trends. There could be a seasonal price increase during the holiday season, and customers can expect rental cars to remain in service longer than they used to. In the early days of the COVID-19 pandemic, car rental companies sold large portions of their vehicle fleets in an attempt to “size” the right size for extremely low demand.

If renting trucks daily at a home improvement store represents substantial savings compared to car rental rates, that could also be a viable option. Then, those 10 areas were ranked according to car rental prices from lowest to highest to give us a better idea of the cheapest metropolitan areas to rent cars. Ridesharing services, such as Uber and Lyft, are probably the first thing that comes to mind when considering alternatives to renting cars.