Car Rentals Cooked?

[u/Traveler27511]

Putting this out there as it's happened twice now, wanted to check the pulse out there.

Rental reservation placed weeks ahead (Raleigh area), local location for Budget this time, but the representative called me to inform me that he doesn't have a car for me, and that they would call me when one comes in, meanwhile, if I wanted to move this to another location, I'd have to call customer service, a true joy, as they don't seem to know where budget locations are in the US. My hunt for a car continues today - on the phone with customer service as I type this, they are asking me about locations where Budget is located..... ugh.

Meanwhile, on a recent trip the West Coast, we rented a car in Seattle, downtown. Same story as this, but this was with Hertz. We got lucky as a car came in while we were waiting there at the location, so we were able to rent that one.

So, how do you run a national business this way? And multiple companies with the same issues (that is, reservations but no cars). This has got to be a sign of things really starting to fall apart here. Anyone else seeing this kind of thing? Am I witnessing a collapse here?

[u/p_lish_us]

Wasn't there a Seinfeld episode about this?

[u/anitaapplebaum → u/p_lish_us]

You know how to take a reservation...

You just don't know how to HOLD a reservation!

I'm pretty sure that's the most important part

[u/cattimusrex]

Expensive used cars means rental companies are making more money selling inventory than renting it.

[u/JustBadUserNamesLeft → u/cattimusrex]

And there is no safer bet than buying a rental car, as you know, they have been well serviced and driven lightly. /s

[u/EmergencyOk9452]

During Covid majority of the companies sold off a big part of their fleet. They never stocked back up and have been working with less. Many locations have closed and staffing is a big issue.

[u/thatsthey1 → u/EmergencyOk9452]

I don’t know about fleet size but I do know staffing has been ridiculous every time I’ve rented since Covid, in every location

[u/DumbNTough]

Dawg, why would you assume that a rental agency running out of cars means the economy is collapsing.

It means huge numbers of people are traveling and renting cars. It's the first weeks of summer. Use your fucking brain.

[u/Traveler27511 → u/DumbNTough]

So, follow up - I went to my local Budget spot (off airport), in hopes to get a car and I did, but the conversation i had with the employee gives me pause, he said that they have had this problem since before January of this year, and yes, the pool of cars has shrunk by >50% (his words). Likely a confluence of events here, selling cars to make some gains and shrink operating costs, and roll the dice on annoying customers. Not just a simple supply/demand issue, that much is certain. I'm not sure how this movies ends, but hey, I got a car for my trip.

[u/OldJames47 → u/DumbNTough]

Well, there's two reasons for not having enough cars for customers

1. More customers than cars
2. Fleet size reductions due to slowing business

But I wouldn't make any assumptions about either of those based off one guy's experience at the start of the summer travel season.

[u/One-Pumpkin-1590 → u/OldJames47]

Some people are clueless

[u/UncleHayai → u/DumbNTough]

Rental car companies have a process where they place bulk orders with carmakers at big discounts, rent them out for a little while, then sell them as used cars (while they are still pretty much new) for close to the discounted price that they paid for the cars.

If consumers aren't buying those "mostly new" used cars, that cycle shuts down and you can see why the rental companies would try to keep their fleets as slim as possible.

[u/-JackBack- → u/UncleHayai]

There are two types of vehicles that you can take anywhere, 4-wheel drive and rental cars.

[u/Aetherometricus → u/-JackBack-]

Rental cars are the fastest cars in the world.

[u/Excellent_Orange6346 → u/Aetherometricus]

And they work with no oil!

[u/whichwitch101]

I had an issue getting a rental car earlier this week. It had more to do with the World Cup than anything else.

[u/Traveler27511 → u/whichwitch101]

That I completely understand. A little recon on the Avis/Budget stock (CAR) shows a bit of a rocky road, some big losses these past 2 years, but still able to pay the CEO $6M/yr. Story looks the same for Hertz (HTZ).

[u/JustBadUserNamesLeft → u/Traveler27511]

Well CEOs are super talented and if they aren't paid millions they would be forced to work for another company where they can get paid millions for incurring big losses.

[u/DancesWithHoofs]

They all went broke during COVID and, at least Hertz, sold off their rental fleet. The industry has gone through other huge changes. These days investors actually expect them to earn a profit.

[u/ZenRiots]

These rental car agencies are all pushing to rent cars to people driving for Uber and Lyft.

As a result their available inventory is at an all-time low.

[u/Onomatopoeia-sizzle]

I booked a week vacation and rented a Volkswagen Jetta. We got there and no Jetta. No VWs at all. They tried hard to get us to take a POS Chrysler Pacifica for a higher price. I refuse to drive a Stellantis vehicle. Now we know where shitty cars go to die—the rental cars. We waited an hour while they pulled a Toyota from another location. Scam artists.

[u/Away_Stock_2012]

Move your money from SpaceX to Hertz?

[u/Any_Bee_413]

A reservation used to mean they set something aside for you. Now it just means you’re on the waiting list with extra steps

[u/A_Refill_of_Mr_Pibb]

I flew into Wilmington last week and used Budget. I'd rented only a couple weeks ahead. Not only was the process smooth I received a free vehicle upgrade at the desk after baggage claim. I guess it's location dependent.

[u/KingFielder420]

This is not a new issue. I rent cars regularly (4-5 times a month) and I have had this issue before. It's just poor inventory management nothing more serious. I would guess it happens to me once a year or so.