Nine Alternatives for Scenarios when Car Rentals Escape Your Reach
In the current rental car market, a shortage of new vehicles has led to a scarcity of rental cars. This shortage is primarily caused by a microchip shortage affecting various automobile systems [1].
One solution to this predicament is to explore alternative methods for renting a car. Peer-to-peer car rental platforms, such as Turo, are proving to be a viable option. These platforms allow individuals to rent out their private cars, with some cars potentially available at airports and unlockable with an app [2].
Compared to traditional rental car companies, peer-to-peer platforms generally provide better availability of vehicles, more flexible pricing, variety and customization, and reduced wait times [1][2]. However, during periods of high demand, costs can still be high across all options [4][5].
Traditional rental companies, many of which sold off vehicles during the pandemic, are facing ongoing supply chain delays replenishing their fleets. This results in limited availability and higher prices [1][3].
Alternative vehicle options like camper vans can sometimes be a cost-effective substitute for SUV/4WD rentals in destinations like Iceland, combining transportation with accommodation savings [4].
Here's a summary of the current options and their key features:
| Method | Availability | Cost Compared to Traditional | Key Features/Notes | |------------------------------|-----------------------------|-------------------------------------|----------------------------------------------------| | Traditional Rental Companies | Limited, high demand | High due to shortages | Established fleets, less flexible, longer waits | | Peer-to-Peer Rentals (e.g. Turo) | Better availability | Often lower or comparable with deals| Owner cars, app-based, flexible terms, varied cars | | Camper Vans | Moderate, niche | Potentially cheaper if used for lodging | Combines transport and accommodation | | Alternative Vehicle Types (SUVs, etc.) | Limited for specific types (e.g. minivans) | Higher prices due to recalls/demand | Often last resort, prices surged for minivans/SUVs |
In conclusion, peer-to-peer platforms like Turo are currently one of the most effective alternatives during rental car shortages, offering better availability and competitive pricing compared to traditional rental companies. Booking early and considering alternative vehicle types or rental styles can also ease the impact of shortages and price hikes [1][2][3][4][5].
Other alternatives include driving your own car to the destination, using public transportation, buying a car at the destination and selling it, driving it back, or having it shipped home, and even limousine services.
References:
[1] ABC News. (2021). Rental car shortage: What's causing it and how long will it last? [online] Available at: https://abcnews.go.com/Business/rental-car-shortage-causing-last-long/story?id=77936048
[2] Turo. (2021). How it works. [online] Available at: https://turo.com/how-it-works
[3] CNBC. (2021). Hertz emerges from bankruptcy after $1.65 billion rescue deal. [online] Available at: https://www.cnbc.com/2021/06/29/hertz-emerges-from-bankruptcy-after-1-65-billion-rescue-deal.html
[4] The Points Guy. (2021). The current state of the rental car market: What to know before you book. [online] Available at: https://thepointsguy.com/guide/the-current-state-of-the-rental-car-market-what-to-know-before-you-book/
[5] Forbes. (2021). The Rental Car Shortage Is A Real Problem, But It's Not The Only One. [online] Available at: https://www.forbes.com/sites/alexknapp/2021/06/16/the-rental-car-shortage-is-a-real-problem-but-its-not-the-only-one/?sh=46f625db673e
- In light of higher prices due to the rental car shortage, considering credit options for car maintenance or travel could help manage expenses.
- The insurance industry is increasingly offering policies for car-sharing and peer-to-peer car rentals, providing financial protection for both renters and car owners.
- For a more sustainable lifestyle, public-transit and transportation alternatives, such as electric bikes or scooters, could be a budget-friendly solution, especially in urban areas.
- In the wake of the uncertainty surrounding the rental car shortage, some individuals might choose to invest in finance apps that help monitor and manage their spending habits more effectively.
- In addition to the traditional car-rental industry, the automotive sector has been exploring new avenues, like autonomous vehicles and ride-sharing services, to accommodate shifting travel needs.
- During extended trips, it is essential to consider travel-related expenses, including taxes and vehicle maintenance, when weighing the costs and benefits of renting a car versus other modes of transportation.
- Encouraging a culture of carpooling can help reduce the strain on the transportation system, ease congestion, and potentially lower personal spending on fuel and vehicle maintenance.
