If you’re planning to travel this summer, rental cars might be more expensive than you anticipated.
Prices are skyrocketing because of the pandemic, with no end in sight, per a new study.
According to data collected by New York investment bank Jefferies, the standard cost to rent a vehicle across the nation increased to a record rate of $63.75 per day in May, up 50% in some instances, reports New York Post.
As more states continue to ease pandemic restrictions, demand for the vehicles is rising, with experts estimating fees for rentals in August to surpass $100 a day. In addition, data on summer reservations show when vacationers sign up to rent a car, they will most likely pay more than double what they would have before the COVID-19 pandemic.
“You may see consumers resort to mass transit,” Jefferies analyst Hamzah Mazari said.
Prices for rentals from car company Avis have already risen to $81.59 a day in June and $94.51 a day in July. In August, the average is poised to be $103.40 a day, currently a 104% increase over prices for equivalent rentals before the pandemic.
Similar trends abound at comparable rental companies.
For Hertz, the median price is $114.49 for August, 147% above prices before the pandemic. Enterprise's median prices sits at $114.49 a day for August.
In May of 2020, due to Hertz Rental filing for bankruptcy, the brand announced it would be selling off a significant portion of its cars and wouldn't be buying anymore in 2020.
It was also reported that other rental car companies who struggled amidst the coronavirus pandemic needed to get rid of large portions of their fleet that were going unused and expected that buyers would able to get these used cars at a significant discount.
Rental car companies already sell lots of cars per year at discounted rates with no-haggle pricing and long tryout periods where you can get those cars checked by mechanics and get a feel for them.