Vehicle Rental Costs Skyrocket

As many of us start travelling abroad again for the first time in a while, families will have noticed another significant increase in their costs, recent studies have revealed vehicle rental prices throughout Europe have skyrocketed since the Covid 19 pandemic, some of the UKs favourite holiday destinations have seen some costs double.

Car rental prices in the UK didn’t escape this price hike either, anyone looking at hiring a vehicle found prices soar by 190% over the same period.

The study analysed the market in London, Manchester and Glasgow, comparing the average cost to rent a new or used vehicle (hatchback) during July and August, the price had nearly doubled, an increase of 190% saw the hire cost come in at around £818 per week.

London saw a rise of 119%; Glasgow increased from £624 to £917; whilst Manchester jumped by over 265%.

Data was gathered from many popular car hire companies that included, Budget, Hertz, Sixt, Avis, Enterprise, and Europcar. As well as the cost of living and inflation across many industry sectors, some motor trade industry experts have pointed to the shortage of new vehicles being available to purchase from car dealer showrooms and forecourts.

One study carried out highlighted the average cost to hire a medium hatchback during the summer months cost over £670 per week, compared to July 2019, when the average rental price for a week was just £339. The data analysed the most popular destinations in Europe, including bid city break destinations like Barcelona, Milan and Nice.

Geneva, Switzerland has seen the largest increase with an eye watering rise of over £500, where Barcelona rental costs increased by over 140%. Milan has seen the smallest percentage increase to date, but still a staggering 70% higher.

Some tips to consider before renting:

Understand the difference between Compact and Economy class vehicles.Do you need extras like a sat-nav, most modern cars now have them fitted as standard.Shop around as prices can vary by a considerable amount.Read the small print and find out what your mileage allowance is.Check for damage before setting off otherwise existing damage can be blamed on you.Do not pre-pay for fuel – you can always find it cheaper elsewhere.

Like everything else, motor trade industry costs are also rising, like private and motor trade insurance premiums, ongoing fuel prices, even parts and labour, so the car rental price increases wasn’t good news for holidaymakers looking to take a family road trip this year.

It is therefore important to know what is involved in hiring a car, there are many factors that could see you pay even more for your week’s rental; so look at the market carefully before deciding. Although there are many benefits to hiring a vehicle whilst on holiday, or travelling for business, you can always drive your own vehicle if you have one, driving abroad can save you money.

You may also want to consider private or motor trade breakdown cover before setting off to ensure the trip doesn’t end up costing more than you bargained for!