Why is the cost of car rental going up?
The cost of a car rental has increased at a faster rate in recent years than in any previous time period in the past 10 years, according to a report released on Wednesday.
According to the annual Car Rental Costs Report, which tracks car rental costs in the US, the annual cost of renting a new car jumped by 8.6% from last year, when the average annual cost was $3,000.
In comparison, the average cost of owning a car in the country has risen by 2.3% since 2010.
The report, compiled by the Consumer Federation of America (CFA), found that in 2016 the average yearly cost of leasing a new vehicle in the United States was $15,000, while the average price of a used car in 2016 was $22,600.
While the price of new vehicles has fallen from the high of $46,000 in 2014 to the low of $30,000 at the end of last year (the average price has dropped by more than $2,000), the cost per mile of a new electric car has increased from $1,500 in 2016 to $4,000 now.
Car rental companies have also been quick to claim that the increase in rental costs has been driven by the growing number of people who prefer to rent a car.
“There’s a huge number of car renters who are opting for a car, and they’re paying less,” says Peter Smith, the CEO of leasing company CarRental.com.
“For the average renter, the cost savings is around $10 per month, but for a sharing owner it’s around $100 per month.””
For car owners, the rising cost of cars is also causing a backlash.””
For the average renter, the cost savings is around $10 per month, but for a sharing owner it’s around $100 per month.”
For car owners, the rising cost of cars is also causing a backlash.
“It’s really frustrating to have to pay more for a vehicle that I’ve never used,” says Kevin Sorenson, who owns two cars, a Toyota Land Cruiser and a Honda Odyssey.
But it’s not an option.””
In my mind, if I were going to buy a used vehicle, I’d get a better car.
But it’s not an option.”
The average annual rental cost of an average American household in 2020 was $16,400, up from $14,400 in 2016.
In comparison, a year ago the average rental cost for an average US household was $11,000 with a total of $24,000 of expenses.