Even without apps and peer-to-peer disruption, the car shortage could mean a lasting shake-up in the rental market—and that means prices are likely to stay high. One reason: The car rental industry was previously able to keep prices down in part because automakers produced too many vehicles, says Toby Poston, director of corporate affairs at BVRLA. Rental companies would either buy excess vehicles in bulk at a discount, selling them off after their rental career ended, or set up buyback schemes with manufacturers, cutting a deal to use a car for a short time before returning it.
Nicole Kobie explains why it is so difficult to rent a car right now. In part the drop-off due to the rental market drop-off during lockdowns and issues with supply chains when trying to restock. Kobie wonders whether this new normal will give rise to disruptions, such as gives peer-to-peer car-sharing firms. This all explains so much. Personally, I was recently run into and tried to hire a car and was told there was nothing available for three weeks.