Car rental cost skyrockets nearly 40% after global microchip shortage
Car rental cost skyrockets nearly 40% after global microchip shortage cuts supply of new cars
The cost of renting a car has climbed nearly 40% after a global shortage of microchips reduced the supply of new cars.
Logistics headaches and increased demand for semiconductors from the gaming industry have resulted in a shortage of new vehicles.
Automakers have favored selling to dealerships over rental companies, which typically buy wholesale at lower prices. This has forced rental companies to scramble to find inventory to meet demand and replace older cars.
Shortage: Logistics headaches and increased demand for semiconductors from the gaming industry have led to a shortage of new vehicles
Search for The Mail on Sunday by comparison site Rentalcars. com showed that rental costs for some models had risen nearly 40% since the spring, leaving vacationers facing higher bills this semester.
The cost of renting an SUV for a week in Britain has risen 38% to Â£ 381, from Â£ 277 in April. For tourists to France, the average car rose 6% to Â£ 251 per week, although this was down from summer season highs of Â£ 280.
The average UK rental car now costs Â£ 45 per day, up from Â£ 35 six months ago, while van hire has dropped from Â£ 74 to Â£ 87 per day.
Auto Trader Director Ian Plummer said: âThe shortage of microchips has resulted in an unprecedented shortage of new cars.
âRental companies update their fleets every six months and therefore find it difficult to find new cars to replace old ones, which are more expensive to operate. Expect prices to stay higher for some time.
Europe’s largest listed rental company, Europcar, warned in July that the pressure on the industry was likely to continue.