Originally Posted by
GeorgeJ
Here's a price example from my San Francisco mention above.....November 3rd, one day, typical rate for a compact, $180 with taxes ($129 base rate, $51 taxes)...are you kidding me?
If a rental company pays $300/mo to own the car, and let's say they can sell it for the remaining balance, it would only take them 3 days or so per month of rental to break even; if they actually have it rented half the month, what a windfall...
No freaking way would I pay $180 a day for a car! My roundtrip cost across country is less than that!
Adios car rental ripoffs; it's no wonder your business is down...I'll go with airport shuttles.
I havent posted recently but I had to comment on this. Rental companies pay approx $300/month for a car???? By this logic, a brand new car that was rented for 6months and had 25,000miles put on it, would have only depreciated $1800??? I wish a $25,000 car is worth $23,200 AFTER 6months . True cost of an avg fleet is closer to $800-$850/month (more these days with the lack of attractive fleet programs), thats not even factoring interest, maintenance, staffing, rent, overhead etc etc. Bear in mnd that most business comes from corporate travel which have negotiated rates, which are constant year round. When the retail rates are $100 or more per day, its because fleet is tight and it is a way to "cool" off demand. It is corporate travel that carries the rental companies, not the handful of retail rentals at a high dollar figure.The subject of the new fleet programs in the current economy have been discussed in other forums but I had to chime in with this $300/month that was pulled out of thin air.