Why are Rental Cars so Expensive?

Rental car companies fell on hard times at the start of the pandemic. Demand dropped as much as 90% in the early weeks. In the process, rental car companies sold large portions of their rental fleets. Many of these companies canceled orders for new cars too. Now that demand is coming back, rental car companies are also finding it harder to rebuild their fleets due to manufacturer shortages caused by factory shutdowns and recent semiconductor chip shortage that is holding up auto production. This has led to car shortages and sky-high prices.

The situation is likely to stay this way for the coming months as rental companies rebuild their fleets. So until then, book your rental car as far in advance as possible.