The cost of renting a car soars by almost 40% after the global shortage of microchips reduces the supply of new vehicles
The cost of renting a car has soared by almost 40 percent after a global shortage of microchips reduced the supply of new cars.
Logistical headaches and increased demand for semiconductors from the gaming industry have led to a shortage of new vehicles.
Automakers have prioritized selling to dealers over rental companies, which generally buy in bulk at cheaper prices.
That has left rental companies scrambling to find stocks to meet demand and replace older cars.
Shortages: Logistical headaches and increased demand for semiconductors from the gaming industry have led to a shortage of new vehicles.
Research for The Mail on Sunday by comparison website Rentalcars.com showed that rental costs for some models had skyrocketed by nearly 40 percent since the spring, leaving tourists facing higher bills in this semester.
The cost of renting an SUV for a week in Britain has risen 38 percent to £ 381 from £ 277 in April. For tourists heading to France, the average car is up 6 per cent to £ 251 per week, although that’s below the summer season highs of £ 280.
The average UK rental car now costs £ 45 a day, compared to £ 35 six months ago, while van rentals have risen to £ 87 a day from £ 74.
Auto Trader Director Ian Plummer said: “The shortage of microchips has led to an unprecedented shortage of new cars.
“Rental companies update their fleets every six months, so now they are struggling to find new cars to replace old ones, which are more expensive to drive. Expect prices to stay higher for some time. ‘
Europcar, Europe’s largest publicly traded rental company, warned in July that pressure on the industry would likely continue.