Last summer, renting an economy car on Maui, even in peak tourist season, cost about $50 a day. This year? More than $500. If you can find one. If you’re flying into Kahului Airport next week, you’re just out of luck – we couldn’t find a single rental car available on the island.
That phenomenon is occurring at vacation destinations all over the world due to a rental car shortage. Some vacation hotspots are seeing prices of $700 per day, Deutsche Bank Senior Hotel-and-Leisure Analyst Chris Woronka told reporters this week.
The problem isn’t limited to islands and resort towns. Jonathan Weinberg is the founder and CEO of AutoSlash, which helps vacationers find deals on rental cars. He has been seeing prices rise in areas not known as tourist sites, he says, because rental car companies have sent all the cars they can find to the busiest vacation spots.
“The only real logical explanation is that they’re pulling vehicles out of there, and they’re leaving those areas with a short supply,” Weinberg explained.
Blame the COVID-19 pandemic. In 2020, with worldwide travel shut down and no easy way to tell when it would return to normal, rental car companies sold off much of their fleets to stay afloat.
Now that vaccinated Americans are traveling again, the companies are struggling to restock. A microchip shortage has halted or slowed production of many cars. Automakers are using the available chip supply to build their most profitable models – not the bargain sedans that rental companies buy in bulk.
The rental car shortage is likely to be with us until the chip shortage ends — and the chip shortage may last into 2022.
So, what can vacationers do?
Shhh…You Can Rent from Some Car Dealerships
This one is our favorite tip (you are reading Kelley Blue Book, after all). Some car dealerships rent out parts of their own fleet. Toyota has a website dedicated to its rental program, allowing you to search for a rental car from Toyota dealerships across the U.S. as easily as you could from Hertz or Avis. Nissan does the same.
While other automakers may not have nationwide rental programs, local dealerships from many brands offer try-before-you-buy rentals. If you’re taking the time to plan a vacation, try calling dealerships near your destination. Most won’t have rental programs, but some do, and they’re not always advertised.
Even if you’re leaving the U.S. for your vacation, this might be worth a look. Kia doesn’t have a formal try-before-you-buy rental program in the U.S., but it does in parts of Canada and the U.K.
Rent From a Local
Turo and Getaround are to cars what Airbnb is to homes. Car owners use the services to rent out their vehicles by the day, in Turo’s case, or for cheaper hourly prices, in Getaround’s.
We’re big fans of using the services to rent a vehicle for needs your daily driver doesn’t meet in normal times. If you need a third row of seats one week a year when Mom and Dad visit, you don’t have to pay year-round to own one. You can buy a more affordable compact SUV for 51 weeks a year and use Getaround when the folks visit. Turo even has a classic and vintage car rental program, allowing you to experience a first-generation Corvette or open-top Mustang for a day or two without breaking the bank.
In these times? They might net you a way around Key West when the traditional rental companies are out of cars.
Check Hourly Car-Sharing Services
Renting from a traditional rental car service means renting by the day, but you don’t use your rental car all day long at many vacation spots. Services like Zipcar rent by the hour. Why not spend the day at the beach, then rent a car to head into town for dinner?
Rent a Bike Instead
How far will your daily excursions take you once you reach your travel destination? If you expect to travel just a few miles every day and your health allows it, try using bike-sharing services instead.
Don’t Rent a Car
Lastly, consider whether you really need a rental car, even if you are heading somewhere you expect to move around a lot. With prices as high as they are this summer, renting a car can easily cost more than renting a hotel at your destination.
If you’re heading overseas, consider that many countries have far more robust public transit systems than Americans are accustomed to. If you’re heading to an American beach town, it’s quite likely that you can cobble together hotel shuttle rides, taxi cabs, and Uber and Lyft trips for far less than it would cost to rent a car this summer. And many outdoor excursion outfitters offer rides as part of their standard packages of kayak trips, caving expeditions, and other activities.
