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Old 01-05-2008, 11:18 AM   #1
Mr. Wyndham
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This should help even things out nicely

GM, Ford trigger auto rental price hikes

If you’ve noticed a price hike when you rent a car these days, blame Detroit.

Ford Motor Co. and General Motors Corp. in particular have pulled back on the vehicles they sell to rental car companies over the past year. And the result has been an increase in fees, from under $50 a day for a base daily rental to over $70 now, industry analyst Dennis DesRosiers points out in a recent note to clients. Ford and GM are now forcing daily rental to pay closer to the real value for their vehicles, he says.

Sales to car rental firms like Hertz and Budget are less profitable for automakers and in the past were frequently dumping grounds for vehicles they could not sell at dealerships. Boosting profitability is job one now for the Detroit players and they are actively scaling back less profitable sales, a fact that also showed up in their year-end sales numbers. Ford sales fell 2.2% and GM’s dropped 4.1% last year in Canada.

Foreign nameplates have stepped in to fill some of the rental void left by Ford and GM, a strategy Mr. DesRosiers questions because selling a model heavily into rental fleets reduces its residual value. Get ready for a whole lot of potentially pissed off Hyundai, Nissan and Toyota buyers.

Nicolas Van Praet
This was always a part of why some foriegn models had such a nice resale value.....hopefully that will drop a bit - and buyers can come to reality that all of the automakers are at least on par with eachother....
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Old 01-05-2008, 09:29 PM   #2
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very interesting. I am curious to see how this will effect things. I hate the way the rental companies never take care of the cars.

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Old 01-05-2008, 10:40 PM   #3

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Well, I'm too young to rent anyway, but higher fees aren't such happy news. I am glad that resale values should improve, and I have no problem with GM putting its profits and retail customers before cheap rental prices. I think I'll just have to plan vacations in such a way that I'll be less likely to need a rental, or just do a good ole road trip.
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