Car rental economics

[brewer12345]

We are going on a trip to visit DW's family next month and wanted to rent a car while we are there. We made a reservation with Hertz a few months ago when we bought the plane tickets. The cheapest thing that would reasonably fit all of us was a "midsize SUV" described as a RAV4, Ford Escape, etc. Total tab was $665.

Flash forward to today. I checked prices again and found that I could get a small car (and squash us all in) for $500 or so. Large cars, minivans, etc. ran $600 to over $1000. But a midsized SUV was offered by another rental company for $345. Sold. Made the new reservation, cancelled the old one. No way on earth will I burn enough gas to come anywhere near the price differential between the SUV and something else.

Is there that much media influence on consumers that they are making foolish decisions like this? I suppose I shouldn't be surprised, but I am.

 

[REWahoo]

Is there that much media influence on consumers that they are making foolish decisions like this? I suppose I shouldn't be surprised, but I am.

Seems right in line with the folks who are itching to sell their trucks & SUVs to buy an economy car - and lose thousands to "save" on their gas bill.

 

[73ss454]

Seems right in line with the folks who are itching to sell their trucks & SUVs to buy an economy car - and lose thousands to "save" on their gas bill.

Not to mention Motor Homes.

 

[ziggy29]

I've noticed (and heard) that rental car companies are offering a lot of "free upgrades" to people who have small cars reserved after they come to the rental counter.

By the way: the "media influence" you talk of is similar to the influence which panics people into selling stocks low and eggs on their irrational exuberance to get them to buy high. And it's the same influence which has them trying to unload their SUV at a $10,000 loss which would take MANY years of burning $5 gas to recover from. So I"m totally not surprised.

 

[REWahoo]

Not to mention Motor Homes.

Heh, you won't catch me trying to unload my [-]rolling money pit[/-] big toy anytime soon. I figure I'd take a $20-25k haircut to "save" $2-3k per year in fuel costs. Even with my limited education I can see the math doesn't add up.

 

[eridanus]

I've been offered those free upgrades. Two weeks ago, I drove a PT Cruiser off the lot instead of a compact car. They never seem to offer a free upgrade to a convertible.

Along the same vein, the rental "Green Collection" cars cost a lot more than the same-MPG "economy" cars.

 

[Martha]

After two of us, a dog and a bird living in a 23.5 foot MH for a month and a half I am ready to buy a big MFing motorhome.

Not seeing the deals one should see out there.

 

[Running_Man]

I just came back a week ago from a vacation in Scotsdale Arizona and we drove to San Diego CA for 3 days as well. Received a weeks rental of a Ford Escape for $22 a day for a weekly rental, plus taxes which are considerable in Arizona, total was $257 for the week. The only car offered cheaper was an Aveo for $21 per day.

Of course the gas in San Diego was $4.79 per gallon......

 

[brewer12345]

Heh, you won't catch me trying to unload my [-]rolling money pit[/-] big toy anytime soon. I figure I'd take a $20-25k haircut to "save" $2-3k per year in fuel costs. Even with my limited education I can see the math doesn't add up.

Heck, its easy to save fuel with a MoHo. Park it. Do so at a park if you like, but its not like you'll starve or lose your job by doing so.

 

[REWahoo]

After two of us, a dog and a bird living in a 23.5 foot MH for a month and a half I am ready to buy a big MFing motorhome.

Not seeing the deals one should see out there.

I'm seeing some reasonably good deals on Craigslist, but you know you'll have to get serious and make someone an offer to see how soft prices really are. If fuel prices don't ease up I'll bet some folks will start getting a little desperate in a few months.

 

[FinanceDude]

I'm seeing some reasonably good deals on Craigslist, but you know you'll have to get serious and make someone an offer to see how soft prices really are. If fuel prices don't ease up I'll bet some folks will start getting a little desperate in a few months.

Desperation has not set in yet, but the prices of nice fishing boats are beginning to fall............

 

[Nords]

But a midsized SUV was offered by another rental company for $345. Sold. Made the new reservation, cancelled the old one. No way on earth will I burn enough gas to come anywhere near the price differential between the SUV and something else.

You'll have to wait until after you're done with the car. Have you seen the Seinfeld episode on "But I have a reservation!?!?"

I fear that the cheaper rental company will be absolutely vicious and full of scare tactics about upselling. (They probably don't know you well enough to recognize the error of their ways.) Last summer we also got nailed by the "damaged windshield" scam. So now before we drive away we walk around (in plain view of the staff) taking digital photos of the car.

 

[audreyh1]

After two of us, a dog and a bird living in a 23.5 foot MH for a month and a half I am ready to buy a big MFing motorhome.

Not seeing the deals one should see out there.

The big MFing motorhomes are not near the quality of what you already own, unless you go with $$$$ Foretravel.

Audrey

 

[brewer12345]

I fear that the cheaper rental company will be absolutely vicious and full of scare tactics about upselling. (They probably don't know you well enough to recognize the error of their ways.) Last summer we also got nailed by the "damaged windshield" scam. So now before we drive away we walk around (in plain view of the staff) taking digital photos of the car.

I avoid one of the rental agencies at the airport we are flying to because they are extremely aggressive on the upsell and the pricing strategy is sleazy ("what, you want us to come deal with the car we gave you if it falls apart on the road? That will be an extra $2 a day.").

I usually give the rental agent the smackdown early on and that's it. I am very, very careful with the walk-around since I did a short stint as a car rental agent in my youth.

 

[Notmuchlonger]

We always have used Hertz. Never ran into a problem with them. This spring in TX. Our car would not start without a jump when we were leaving from our relatives. We told Hertz. The lady at the desk gave us a 50.00 dollar voucher to use anytime. Quite pleased with them. Knock on wood.

But Im going to do the photo shoot next time before we leave and after we get back. Thats a good idea. Never dawned on me.

 

[audreyh1]

Not to mention Motor Homes.

It's amazing how much touring you can do on a single tank of fuel. We're over 2 months and have thoroughly explored northern CA and 2/3 of the OR coast and stayed at 10 different spectacular locations. Keeping our fingers crossed that we can finish the OR coast tour before another fuel up is required.

Diesel is up 60 cents a gallon since we last filled the MH on May 2. Of course, it's past double what it was when we started our adventure 3 years ago.

But still, it's those long distances crossing the country that kill you. I know we'll be feeling the bigger pinch when we head back into the interior....

Audrey

 

[FinanceDude]

It's amazing how much touring you can do on a single tank of fuel. We're over 2 months and have thoroughly explored northern CA and 2/3 of the OR coast and stayed at 10 different spectacular locations. Keeping our fingers crossed that we can finish the OR coast tour before another fuel up is required.

Diesel is up 60 cents a gallon since we last filled the MH on May 2. Of course, it's past double what it was when we started our adventure 3 years ago.

But still, it's those long distances crossing the country that kill you. I know we'll be feeling the bigger pinch when we head back into the interior....

Audrey

Do you have the "super duper" 250 gallon tank??

 

[saluki9]

I'm thinking the rental car companies are hurting.

My wife and I are going to Vegas this week and the going rate for a midsize car was $9-$12 a day.

Except for Hertz which was stuck at $50 a day.

 

[brewer12345]

I'm thinking the rental car companies are hurting.

My wife and I are going to Vegas this week and the going rate for a midsize car was $9-$12 a day.

Except for Hertz which was stuck at $50 a day.

We are getting the cornhole on rates because there is a major event going on in town the following week and I suspect we are getting hit by it. But I will be watching car rental rates carefully to see if they really go into the ditch.

 

[audreyh1]

Do you have the "super duper" 250 gallon tank??

Nope. 115 gallons. But I have never filled more than 99 gallons! And I felt that was really pushing it.

It's common for us to go well over 600 miles and occasionally over 700 between fill ups. A fill up is usually 75 to 85 gallons.

Audrey

 

[Brat]

The more fuel you have on board the heavier the vehicle, the lower the mileage.

Fuel in Cali and on the Oregon coast is more expensive than the OR I-5 corridor. If you are headed even further north to WA get what you need before crossing the Columbia.

 

[TromboneAl]

Is there that much media influence on consumers that they are making foolish decisions like this?

You're forgetting that normal people are not like us. They never sit down and calculate the numbers. They go by gut feeling.

Just talked with good friends who are selling their wonderful house and moving into town "because they are spending too much on gas." I calculated (but didn't share it) that they will save at most $1,000 per year. It will cost them 30K to move. $2K just to refinance their HELOC.

And today, they said that they plan to move again in three years, because they want to downsize. I had to bite my tongue. This retired couple is painting houses to make ends meet.

 

[boont]

Car Rental

After a recent flight to New York (mentioned in another thread) we decided to cancel our commercial flight reservations (home to California) and make it a road trip.

We hadn't done this cross country, take your time drive, since just after college. Listened to Walter Cronkite, back then, describe men walking on the moon from a radio balanced on the roof of my 1963 VW Bug.

This time, I wandered into a Manhattan garage (where parking cost $40 an hour) and said, "Give me something with four cylinders and I want to leave it in San Francisco."

They came up with a Pontiac "Vibe" which is a cross between a small SUV and a station wagon.

My brother, who knows about cars, said, "That's a Toyota made in Fremont Calif. with a Pontiac badge."

Whatever the hell it was, it got 36 honest to goodness miles per gallon ( I checked it about 6 times) and was a perfect car for this type of trip.

We drove it 4500 miles in about three weeks. This road trip was the second half of the best trip of my life.

Like the Ford Escape, the Vibe, has no cornering ability what-so-ever. You feel like you are going to fall across the car at any sharp turn. But, aside from that, it was great. Just back up to your motel or hotel and unload/load. We really got that down to a seamless routine.

I don't know how many people do this kind of trip anymore, but I saw our country and had a fantastic time.

No motor homes for me. We either did a cheap motel, to crash after the best restaurant meal Zagats Guide could find us, or a first rate hotel with the same meal, if the town was worth it.

I've always believed I could travel 1st class across the United States staying in the best hotels and eating in the best restaurants and still beat the motor home costs by a wide margin.

Having said this, I also understand the fun and social benefits that some people get with the motor home trip. Just not for me.

boont

 

[Patrick]

Heck, its easy to save fuel with a MoHo. Park it. Do so at a park if you like, but its not like you'll starve or lose your job by doing so.

It's gotten cheaper for me to fly or drive my car and get a hotel room than pay for fuel for my motorhome (80 cents per mile at today's diesel prices), so it's parked next to my house waiting for the next hurricane evacuation announcement.

 

[brewer12345]

I don't know how many people do this kind of trip anymore, but I saw our country and had a fantastic time.

If I suddenly find myself with a lot of t ime on my hands, this is exactly what I plan on doing.