The New York Times reports, "While the global recession has sent prices plummeting on airfares, hotels and cruises, it is having the opposite effect on rental cars. In May, the average rate for a weekly airport rental of a compact car booked seven days in advance was $345.99, up a whopping 73 percent compared with $199.65 for the same month last year."
Why the dramatic increase? Autoblog explains, "There are fewer vehicles to rent, as companies like Hertz and Avis have cut back on the amount of vehicles that they're buying. They're also selling vehicles to used-car starved dealerships." Smaller rental fleets mean the companies can charge more to customers that need to rent, "And since customers have become accustomed to getting their rentals at the last minute, some aren't getting a rental at all."
What should you do when you need to rent a car? Reserve early, says the Times. Renters might also note that "Deals can also be found by upgrading. With demand for fuel-efficient cars particularly high, travelers can sometimes find a better deal by booking larger, roomier vehicles."
If you're in the market for a new car, check out the U.S. News rankings of this year's best cars as well as this month's best car deals.
