sorry, Consumerist. There's no artificial shortage to speak of. The rental car companies found that they weren't getting the prices they wanted, renting the number of cars they had in supply, so they voluntarily decreased the supply. Every day they choose how many cars to supply, so you might say the only artificial thing is your suddenly being interested in the fact.

No conspiracy, or difficult concept. A shortage in some people's eyes is the correct amount in the market's eyes. Nothing artificial about it. It's natural.

My experience with renting cars has become comically bad over the past year. Reservations are becoming a joke--it's first come, first served. Twice I've arrived at the airport and Hertz has had no cars, despite having a reservation and being a 'gold' member. Hertz's response -- 'We're sorry'. Yes, Hertz you are sorry.

I have had consistantly good luck using Priceline over the years. I am in San Francisco this week and god a mid-size for $15 a day + fees through ALamo. From Friday to Friday it came out to $155, so I guess with fees it is more like $22 a day.

@kepler11: I think you should re-read the article. The artificial shortage is in supply and demand. They had enough supply to meet the demand, however, wanting more money they decided to take cars off there lot in order to higher prices. They created the car shortages in order to inflate there prices. Since it says car rental firms (and not just 1 firm) also says that it could have been planned by all firms cooperatively (if not the first firm to higher prices would never have attained the same business over the others) in order to get more money for cars which, btw, is illegal in the United States.

@ckaught78: Pretty much the same here - I got a car for a 3-day weekend from Alamo for $50 (including the "gouge the traveler" taxes) at Pittsburgh International Airport.

@kepler11: Sounds a lot like creating an artificial shortage to me.

@Devin DeVries:

An artificial shortage would be if they warehoused all those cars somewhere, and refused to rent them. They haven't done that - they've just decided to order fewer cars.

@kduhtoe:

By that metric, then their decision not to double the size of their fleets tomorrow would be considered an artificial shortage.

@Devin DeVries:

You're reading their motivation into the article. That's your assumption, not a fact. What the article SAYS is that rental companies are selling some of their cars, and they're holding off on buying new ones. Selling older cars is something rental companies always do. Buying fewer new cars is something you'd expect them to do during a recession.

The inadequate supply could just as easily be caused by inaccurate forecasting as by an intent to drive up prices. This recession was expected to be one of the worst in a long time, so it's not unbelievable that they would have a hard time forecasting demand for rental cars.

What is the quality of the remaining cars on the lot? A few years back I had a cross country and back trip but the rental had 26,000 miles on it already. I returned it the next day because it was out of alignment and I could not drive it straight without the risk of me getting my own shoulder out of alignment!

The replacement car had 29,000 miles on it and made it 6,000 miles before a flat tire forced me to return that one too. The 3rd car had only 10,000 miles so we were able to complete the trip although the 'check engine light' came on just before we returned it.

Thanks for the tips, for this year's trip I checked all of the major guys before trying Travelocity. They 'reserved' a car for me $300 less than I found on the rental car sites. I have another 3 weeks before I get the car so I don't know if that car will be available at that price at that time!

@Cant_stop_the_rock: Yeah but truth in headlining doesn't generate clickthroughs... This is sensationalistic spin pure and simple, accuracy be damned.

"Upgrade! Since everyone wants a small, fuel-efficient car, ask for a better deal on a larger, roomier car."

I thought the opposite was true. I'm always trying to get a larger car and and all they have is compact or sub-compact.

The shortage is not a conspiracy but is a case of supply and demand. Demand has decreased so they are stocking fewer cars. Supply has also decreased. The US auto plant shutdowns earlier this year has resulted in fewer cars on dealer lots and in rental fleets. The rental companies have had to hold onto their existing cars longer resulting in higher mileage rentals winding up at dealer auctions.

@fantomesq:
It's also very possibly libel.

From the "Car Rental Tips From A Pro" link above:

"4. Regarding availability - right now, a lot of car rental places are very tight on inventory because of the credit crunch, the general state of auto manufacturers, etc.,"

@Cant_stop_the_rock: But...but this is Consumerist. How will I sleep at night knowing there is a rational argument against the blind corporate hatred that is so prevalent around here?

I am renting a car in L.A. next weekend. The holiday weekend had prices going pretty high. Here's a couple things I noticed:

1) The prices in commercial Burbank locations were half that of the ones at the Bob Hope airport. Fortunately, I have a ride to the rental place.

2) I was comparing prices online. I was able to find a car at Enterprise, but when I tried the same search for the same location with my AmEx discount, they were mysteriously sold out. HMM.

@Cant_stop_the_rock: I don't think so it's too generic. "Car rental firms." No names no direct accusations. It's true because it's so broad. Even if 1 car rental firm is trying for a shortage it makes the statement true.

When I worked for Budget in their national rental car call center (when it was Cendant) I normally found airports cheaper than the local offices. I normally always checked for customers without them asking. But Airports do charge more in fees. This is a constant.
But this was over 4 years ago. So things could change.

Some of this is just bad advice.

First, renting a less efficient car will not necessarily result in savings overall. At $3 a gallon in Los Angeles right now, figure the car holds 15 gallons, it could mean the difference of driving 175 miles on that same amount of gas.

Renting in town versus at the airport isn't necessarily a better deal either ... and if you do get a better one, how much did it cost you to get from the airport?

Even better is to rent a car for only a couple of days and save on the parking fees if you're in a city like San Francisco or NYC.

But seriously, as others have mentioned, the rental companies don't care how long you were booked for or really what the rate was. When they're out of cars, they're out of cars and you're out of luck.

@kepler11: Whats next, companies raising prices to make for money?!

The problem is that when flying into any given city, it's often a real pain to rent off-airport, especially if you're arriving or leaving after the local one closes for the day.

But yeah, it sucks. It's been a SHARP increase in the past year, and from what I've noticed Avis leads the pack. :/

@MRsteve: My experience over the past year has been spotty...last rental was an '08 Mazda Tribute with 26000 miles on it. It had definitely been ridden hard and put away wet. Rental before was an '08 Dodge Charger that had crunchy brakes and 18000 miles on it. Have also had a couple of Toyota Camrys with under 10000 miles each on them and a couple of Ford Taurus/Mercury Sables with under 10000 miles on them.

The consistent thing seems to be they are poorly cleaned between rentals. Almost every car I've rented this year has had a layer of yuck on the interior. All the more reason to not buy a former rental car.

Decreased supply = higher cost?! OH GOD!

With the way prices are going, I've had to look at alternatives. There are times when it's less expensive to take a cab or shuttle service from the airport to my destination, then have a company such as Enterprise pick me up to rent a car off site.

@Chris Holland: Reminds me of Seinfeld.

"I know what a reservation is."
"I don't think you do!"

...

"Anyone can TAKE a reservation. Take, take, take! But it's HOLDING the reservation that matters."

@Devin DeVries:

If they were not losing money before, then someone would be keeping their prices down to get the business from those who are cutting back, assuming there wasn't a conscious, possibly conspiratorial, effort to lower supply. Either the previous state was unsustainable, or it is artificial (either that or markets don't work).

If everyone wants the compacts, why do they keep buying the mid-sized and large cars?

Is it like the car dealer with the ultra-low priced loss leader car (that they only have one of) taking up half a page in the classifieds?

Or is it like clothing retailers never getting enough large and extra large garments?

If they want to collude on something, maybe they could collude on keeping the cars people actually want to drive in stock, and raising the prices a little to make up the difference on the up-sell. I think it would be worth it to avoid all their bullshit.

@IfThenElvis: The rental cars buy a lot of them since that's what most customers order (and what insurance companies pay for). They just don't have nearly so many big cars.

How the hell are you going to skip the airport? Take a cab? Are you willing to waste an hour just to return the car and get a lift back to the airport?

Being able to pick up a car at the airport is more convenient than you might think, and the one time I did rent off-site (because the airport location was sold out) I had a nightmare of a time getting back to the airport. Airport locations FTW.

Many times I make a reservation and when I get there I'm asked if I want to upgrade for $x more. I say no. They sit there and peck, peck, peck at their computer and tell me my car isn't available and then they give me an upgrade for free. Sometimes it is something odd like a minivan or an Explorer. I haven't been told yet they are completely out of cars.

@OMAC: check around - at the airport nearest me there's an enterprise rental office. but there's also one a few miles away that will pick you up at the hotel i used to work at which has a shuttle from the airport.
a lot of business travelers would get the hotel shuttle when flying in on a sunday night and then have the non airport location of enterprise pick them up at the hotel on monday morning to get their rental. saved a day on rental costs and the non airport one really did offer better rates because they were competing with their own, "more convenient" airport location down the street.

@Cant_stop_the_rock: If only there were car companies with large amounts of stock on hand to quickly rectify that! Oh, wait, there are.

I'm not sure "artificial" is wholly accurate, but they could have more cars if they wanted them.

Also, look to SUVs for rental value -- we just rented a X-Terra in Florida, it was cheaper than a compact!

I've always scored deals on-airport through hotwire. They send you notices when the daily price has dropped. It's usually cheapest a few days b/f you want to rent when they try to unload inventory at a reduced rate.

@kepler11:

Gotta agree with Kepler here . Car rental companies can't "create" a shortage. If that was the case ,they would have done it long before now. All of this conspiracy venom is just silliness from you people that hate anyone that won't give away their product for free. These companies are just adjusting their inventory to the realities of the marketplace right now. Too many cars that are not being rented means dead inventory that is not earning a return (and costing money to register and insure in addition to financing costs).Eliminate some of that inventory and you get a higher utilization rate = more profits. Airlines are doing the same thing right now by retiring some of their unneeded planes.

I love Consumerist .It's usually one of my first reads in the morning ,but just like any family member that I love ,I realize that its fill o' shit sometimes.

Thank you for calling the consumerist on this. It is one thing to report the news. It is another to sensationalize it. Are there airlines creating artificial shortages as well or did they cut the number of flights to decrease the number of planes they were flying at a loss.

These headlines are causing you to lose credibility.

Car Rental Agent: [cheerfully] Welcome to Marathon, may I help you?
Neal: Yes.
Car Rental Agent: How may I help you?
Neal: You can start by wiping that f-ing dumb-ass smile off your rosey, f-ing, cheeks! Then you can give me a f-ing automobile: a f-ing Datsun, a f-ing Toyota, a f-ing Mustang, a f-ing Buick! Four f-ing wheels and a seat!
Car Rental Agent: I really don't care for the way you're speaking to me.
Neal: And I really don't care for the way your company left me in the middle of f-ing nowhere with f-ing keys to a f-ing car that isn't f-ing there. And I really didn't care to f-ing walk down a f-ing highway and across a f-ing runway to get back here to have you smile in my f-ing face. I want a f-ing car RIGHT F-ING NOW!
Car Rental Agent: May I see your rental agreement?
Neal: I threw it away.
Car Rental Agent: Oh boy.
Neal: Oh boy, what?
Car Rental Agent: You're f-ed!

Car rentals are notoriously bad for airport/city/county/state/federal/global/solar system fees and taxes.

In Chicago, they want to take it a step further:

[www.suntimes.com]

@Chris Holland: My now 2nd wife and I rented out of PHL and tried to get an HHR from the pick your own section but it smelled like party vomit and looked like it had either been in a flood or the vomit had filled up the floor boards at some point...

@Pibbs: Oh yeah, Edie McClurg from Planes, Trains,and Automobiles

Classic...

I'm going to have to disagree with the "Rent early" though - I recently took a vacation, and the reservation I made 3 months in advance was for $400 for the entire week. As it got closer, the rates started dropping. Two days before my vacation was supposed to start, I got the exact car I wanted for the entire week for a total of $120 after taxes and fees.

While car rentals are notoriously bad.. in general... This is not artificial shortage. Fewer airline fares, means fewer rental cars. Less money in the expense account of business travelers, means taking a taxi, or carpooling... All of this leads to less demand for cars at airports.

Common people, this is common sense, not conspiracy.

LOL, Yea, Massachusetts wants to do something even better: they're angry that many denizens drive over the border to N.H. and buy stuff where there is zero sales tax. This is especially relevant since Massachusetts wants to boost its sales tax over 25%. So legislator's want to force N.H. businesses to collect Massachusetts tax! They plan on forcing the retailers to check every one's license and if they have a Mass license, then you pay the tax. I'm not kidding. LOL! I'm curious how they're going to enforce this. Right! LOL

Looking for a local rental office is very good advice. Last year we flew in to Norfolk with 8 people in need of a large SUV or full-sized van. We had reservations at Budget, Avis and Hertz for a 8 passenger SUV (made three to make sure we actually got one if another location all of a sudden didn't have one) and the average cost for the three was well over $1200.

We then found Triangle Rent-A-Car in Norfolk that the same SUV's for a little over $600 with unlimited mileage! The SUV was a '08 Ford Expedition EL and other than a hint of smoke smell, was great! 21MPG was the average from Norfolk to NY to Niagara Falls and back!

We are going to Hawaii next month and so far the best I can find is a 7 passenger SUV (we only have 7 this year) for $600. My bro-in-law tells me there are not many local outfits in the HNL airport area so good deals may not be in the works...

Anyone know of any locals rental joints in Honolulu?

@Chris Holland: Aw hell. It's gotten to be so much trouble I don't even rent cars anymore. I just buy one when I get there and abandon it at the airport on the way out.

The "shortage" is actually due to changes in the auto industry.

For many years, rental car companies were the auto industry's version of "Overstock.com". If a manufactuer had a glut of production capacity and/or unsold vehicles it wanted to unload (think Dodge mini-vans, Kia, etc.), they would sell them to rental car companies at fire sale prices.

This eventually came back to bite the auto industry in the ass: When these rental vehicles were retired and wholesaled (usually around 30,000 miles; just before the factory warranty expired) , they ended up on dealer lots as "program cars" at half the price of a new, untitled model. This, in turn, cannablized sales of new vehicles (Why buy a "new" Dodge Caravan for $24,000 when a "program" model - same model year, same options - is half the price) and turned off prospective new vehicle buyers when they realized their "new" car would depreciate 50% in the first year of ownership. This is one of the reasons Hondas have higher resale values as Honda refuses to offer fleet/rental discounts on its cars and SUVs.

Without pre-bankrupt GM, Chrysler or pre-Hyundai Kia, the rental car companies' whored out pricing on vehicles is gone.

@kepler11: One thing people need to understand is that car renal companies are now paying a higher price for CARS. Fleet rates and the number of cars the auto companies will provide at lower rates has gone down. It used to be Ford would dump a bunch of cheap Taurus on the car rental companies to stay the number one selling car. It was true, but not necessarily profitable. Now with car sales low, the car companies want every sale to be a profitable one. I hate that car rental rates have gone up, but who do you think is the largest end user of rental cars? It is business travelers or insurance repairs. Leisure travel is secondary, and if you need a car for that, you should budget it in to your trip.

Typically cities will impose fees on cars rented at the airport so as to charge visitors to the city a higher fee than locals. Of course this makes visitors less likely to visit, makes the car rental places relocate offsite from the airport so that you have to take a (sometimes fairly long) bus ride to the actual cars or when the in town places are out of cars forces you to pay the higher fees.

I've never understood the "let's sock it to the out of towners" attitude with higher fees at airports, hotel taxes and the like. It's not very friendly and in my mind not economically wise.