‘Carpocalypse’ for consumers, rental car prices could increase as demand returns

News

LAS VEGAS (KLAS) — Renting a car anytime soon won’t break the bank as it did over the summer, but there’s a chance renting a car could get more expensive.

During the pandemic, rental car companies decided that since the demand for rentals was down they’d sell off inventory and float themselves. The demand came back much sooner than expected, creating the mass shortage known as “carpocalypse.” During that time, rental car rates increased five, six, and even seven times what they normally are.

There is a little bit of worry if demand comes back really fast like it did in May June July of 2021. We may see prices rise again, and that’s because of supply chain shortages,” Willis Orlando, Operations Specialist at Scott’s Cheap Flights said.

Chip shortages are making it even more difficult for car manufacturers to build up inventory.

Car rental agencies tend to buy cars in bulk and cheaper, and right now car manufacturers are not prioritizing those lower-priced sales.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

8 news now breaking and daily news sign up

CONTESTS

Pro Football Challenge

Don't Miss

Trending Stories