This should help even things out nicely - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

*Mr. Wyndham* · 01-05-2008, 11:18 AM

Quote:

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....

stevenm357 · 01-05-2008, 09:29 PM

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.

stovt001 · 01-05-2008, 10:40 PM

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.

01-05-2008, 09:29 PM	#2
stevenm357 Drives: 98 Trans am 00 Trans am 01 corvette Join Date: Mar 2007 Location: West Virginia Posts: 381	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. __________________ 2001 Corvette Heads,Big cam, 4:11, Custom Exhaust, MGW Shifter Baer Eradispeed +2 2 pieces rotors, Hotchkiss swaybars. and a few other little things. 1998 Trans Am A4 ( was STS turbo until the turbo and oil pump died) 2000 WS6 Trans AM under the knife ( sadly turned into long term project.

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01-05-2008, 10:40 PM	#3
stovt001 Drives: 2006 Cobalt, 2004 Taurus wagon Join Date: Oct 2007 Location: California Posts: 3,812	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.