The outbreak of coronavirus has majorly affected the Automobile industry. Many companies filed for bankruptcy or choose to sell their fleet of vehicles to survive the pandemic. Ford requested cash for the clunkers program while the major car rental companies Hertz bankrupted. This has led to a major shortage of rental cars in the US.
Spring and summer are the time to travel to foreign countries and cities. The travelers are facing a huge problem due to less availability of rental fleets and high charges. There are places open for a vacation where consumers around the corner are coming and facing this issue.
The normal fleet of vehicles is available at surge pricing. The shortage of rental cars in these places has affected tourism. The consumer cannot pay hundreds of thousands of dollars per day for a normal vehicle for sightseeing and visiting places.
The high fees are not only the concern people are not able to get vehicles. The revenue of these companies has received a high toll and consumers have to cut their trips shorts due to these issues. The pandemic time has led to selling almost half of fleets to other locations but now demand has worsened the situation. Consumers have to opt for uber to travel places at higher costs.
The pandemic affected every industry travel was on halt for a longer duration that created the shortage. Recently, the vaccine rollout has opened the door business and create a boost in the economy with travel. Slowly, these rental fleets are buying vehicles to manage the flow but it would require some time to stock the vehicles as before and make travel hassle-free.
The reason for the low availability of vehicles is pandemic and the effect in sales created a downfall. Many rental car companies filed for bankruptcy and competition has down the business. This situation led to canceling of fleets from different Automakers. The supply of vehicles in summer and fall is affected by the private sellers and the buying capacity has affected the sale of new car and used vehicles.
The rental car companies will face a shortage of cars for a long time. It will impact the vacation and travel in the company. Before you plan your vacation book the cars in advance and travel the country without any hassle.
