Fewer cars are being made. Those that are mostly go through retail channels above MSRP, rather than offloaded in bulk to rental companies at a discount. Manufacturers are also prioritizing the most expensive models and trims over the levels normally cost-effective for fleets.

Rental companies are trying to fill gaps in their inventory by buying new cars from dealers, and even used cars at inflated prices from dealers.

All of this means that even if rental companies were willing to take a cut in profit, their base costs are much higher than before covid.