COVID-19 Impacting the Rental Car Industry

by | Jul 15, 2020

Since the recent pandemic of COVID-19, the car rental companies have been suffering greatly. With limited travel throughout the country, the rental cars have been accumulating more dust than mileage. However, the future for the rental car companies is not as bleak as it looks on the surface.

Why, you may ask? Well the pandemic has hit the ridesharing companies even harder. Travels who are renting currently have been advising the rental agents that they are renting a cleaner and more cared for vehicle with a rental company than a rideshare vehicle. But there is more good news for these rental companies; at least for those that can survive this pandemic. Those that do survive will be facing less competition once normal levels of business resumes. Now, obviously that can be bad news for those that do not keep their doors open, but those closing have some silver lining on their clouds too. The banks are working with the companies on the financing issues in unprecedented ways. Some of the rental companies are evening turning back their 2018 model fleets and owing nothing due to a forgiveness program the some lenders or providing. Then, they are buying new 2020 vehicles for less than they originally owed on the 2018 models.

 With possibly several months to go of this pandemic, there is only speculation on the full impact this will have on business, rental car companies included. So only time will tell what the true affect this COVID-19 outbreak will have on the rental car industry.

I am optimistic that this pandemic should be under control before the end of 2020. How long do you think this pandemic will last?



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