Almost every day there is a new story of a supply chain issue affecting a product. Rental cars are one of the many items impacted by the Perfect Storm caused by the pandemic and changing consumer demand. These factors have dramatically reduced the number of vehicles available for rental, which could also impact your vacation travel plans.
Travel plans for the holiday season last year were severely disrupted by COVID-19, with many families unable to come together to celebrate. This year, more and more people are delighted to reunite with their loved ones. With the rental car shortage in full swing, you need to be aware of the potential challenges that lie ahead and what you can do to avoid further delaying visits to friends and family.
Car rental companies are lost
Due to several factors, the availability of rental cars is currently low. When the pandemic first hit, many companies rushed to sell their inventory to cover lost revenue due to lack of travel. It was a quick fix to stop the bleeding of income as the demand had abruptly stopped and no one could predict how long it would last. Another impact on the rental industry is caused by the same shortage of chips affecting the production of new cars, which reduces the number of vehicles that rental car companies have on their lots. When demand rebounded in 2021 (although not to pre-pandemic levels), there were few cars available to replenish the dwindling fleets.
Additionally, the car rental industry is facing a labor shortage similar to that experienced in many retail outlets today. With a shortage of workers, low stocks and increasing demand, it will likely be some time before significant relief is offered to consumers.
Alternatives to carpooling
The car rental crisis can last for months, but luckily there are other options for travelers. One of the biggest opportunities is to use a carsharing service. If you are familiar with the concept of home sharing, for example through popular sites like Airbnb and VRBO, the same concept can apply to vehicles. Carsharing companies allow you to “rent” a vehicle for a short time and you only pay for your use. You log into a car-sharing service, find out which vehicles are available near you and book use through the app.
The table below highlights the pros and cons of some of the most popular carsharing options on the market, along with the estimated costs. In some cases, carsharing can be equivalent to renting a car through a traditional car rental company.
| Carsharing company | Advantages | The inconvenients | Estimated prices |
|---|---|---|---|
| Turo | Reduced daily or monthly rates Peer-to-peer car sharing Wide choice of local vehicles No registration or membership fees Available in major cities and near airports Delivery may be available | Must pay for your own fuel Rates are not available for hourly use May incur additional rental fees if you are under 25 | Varies depending on host, location and make of vehicle and miles driven |
| Take advantage | An Allstate company Guaranteed reservations Full coverage auto insurance included in the daily rate No hidden fees and upfront prices in the app No charge for drivers under 25 Add a second pilot for free | Currently limited to 15 major airports in 12 states Must pick up airport shuttle lots | Daily rental rates start at $ 25 per day, but vary by vehicle type and location |
| Move | Peer-to-peer car sharing Offers hourly car rental rates Available in 20 states plus Washington, DC Includes comprehensive coverage in its insurance program | Installation fees required 200 mile daily limit Must pay for your own gas | Hourly rates typically start between $ 5-10, but increase depending on location and vehicle |
| Zipcar | Avis Car Rental Ownership Available in many major metropolitan cities and college campuses Rate coverage covers gasoline, insurance options, parking and maintenance costs Can book by the hour or by the day | Membership fees are required No delivery available, must be returned and picked up from certain locations High fees if you come home late or don’t use the gascard to refuel | Membership is $ 7 per month or $ 70 per year, plus driving rates start at $ 10 |
Uber and Lyft are another alternative to traditional car rental companies and carsharing options. With these carpooling options, the best course of action during the holiday season is to plan ahead when possible or to book in advance to lock in the lowest prices, before the prices increase. vacation. The more you can lock in your vehicle needs for the holidays, the more likely you are to ensure that you have transportation for your trips.
One point to consider when booking a rideshare service is to make sure you read the fine print of any agreement. There may be more to sharing a vehicle than you think. Reading the agreement carefully can help reduce surprises. Each company has slightly different rules, particularly with what is included in the cost per mile. Be sure to inquire about gasoline costs, insurance coverage, where pickup and drop-off takes place, and whether the rate is available by the minute, hour, day or weekly. The more information you have in advance, the more likely you are to be able to comfortably manage the costs associated with carpooling.
Before booking a carsharing service, now is the perfect time to review your coverage with your auto insurance policy. You can have additional insurance coverage through your policy or you can select the additional insurance package offered when booking the rideshare service.
Winter Driving Safety Guide
Winter driving requires special attention on the road. Not only do you need to pay more attention to dangerous conditions, but you also need to be fully prepared for an emergency. Before hitting the road in a rental car, personal vehicle, or one that you share, make sure your tires are properly inflated. You may also want to keep these and other safety items in your vehicle when traveling:
- Fix-a-flat or other tire and air sealant
- Quality ice scraper
- Wool blanket and towels, for heat or other emergencies
- Jump cables
- Tool kit with screwdriver and bolts, knife and other items
- First aid kit filled with bandages, gauze and other supplies
The likelihood of getting a rental car this holiday season may be a bit more difficult compared to previous years, but it doesn’t impact your opportunity to spend time with friends and family in other cities. You might find that rental prices have gone up, so it’s best to plan ahead as early as possible.
Another alternative is a ride-sharing service, like Uber and Lyft, or ride-sharing services, like Turo and Zipcar. Carsharing services offer a convenient alternative to renting and may even end up costing less than a traditional car rental service.
