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They have nowhere to park their fleet. Do we see single-digit rates?

They have nowhere to park their fleet. Do we see single-digit rates?

Old Apr 2, 20, 11:10 am
  #1  
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They have nowhere to park their fleet. Do we see single-digit rates?

I read how all rental companies have to look where to park, and obviously are carrying an expense to be able to park. So what are the greatest rates, especially in NYC area?
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Old Apr 2, 20, 3:06 pm
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Alamo location @ YVR has $55/week cars... National is still crazy expensive.

Ron.
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Old Apr 2, 20, 4:05 pm
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Originally Posted by newfbc View Post
Alamo location @ YVR has $55/week cars... National is still crazy expensive.

Ron.
TY. Looking in NYC area though
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Old Apr 3, 20, 9:56 pm
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LA area National and Alamo locations are still full price - I guess business is great!
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Old Apr 4, 20, 7:51 am
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Agreed. Seeing rates of $60+ / day for compact cars at my regular location.

They must figure the only people traveling are doing it for business so cost isn’t a major consideration.

Same with hotels.
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Old Apr 4, 20, 3:36 pm
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I think any pricing action that would encourage people to make non-essential rentals (or hotel stays or airline travel) would be a bad thing to do.
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Old Apr 4, 20, 7:39 pm
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I stopped by the LGB location - the National manager was super nice, but said he could not alter the rates that National was charging. I might have better luck with a local Enterprise location manager, but with my usual in-city National location closed which forces me to the airport and higher taxes, there just doesn't seem to be any reason to pay $160/week to keep my 36,000 mile Fusion Hybrid vs $113/week for a Mercedes or BMW with Sixt, especially given gas is now around 2.50/gal in my area. If the Enterprise manager agrees to match the Sixt all-in rate, I might stick with Enterprise and my Fusion, but that Sixt deal is looking awfully attractive.
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Old Apr 5, 20, 9:06 pm
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So I ended up returning my long term National rental today rather than waste time dialing around trying to find an Enterprise location willing to match Sixt. I did a 3 month rental with Sixt for an almost brand new Mercedes CLA with 2,000 miles per month, for about $110 per week or $416 per month vs $160 per week with National to keep my Fusion which they wanted back anyway so they could sell it even without another one to put me in.

When I dropped at LAX, it was a ghost town - even the terminal buses were downsized to vans, maybe 3-4 customers in sight, yet National is still charging full price for rentals rather than charge a small amount to get them on the road earning some money vs the cost of parking them, which just likely increased given the insurance premium lift that will likely result from the RSW fire that just took out a huge number of stored cars.
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Old Apr 6, 20, 6:50 pm
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how did you go about getting a good price quote ?

I need a SUV in a few weeks , and pricing is sky high

Originally Posted by bocastephen View Post
So I ended up returning my long term National rental today rather than waste time dialing around trying to find an Enterprise location willing to match Sixt. I did a 3 month rental with Sixt for an almost brand new Mercedes CLA with 2,000 miles per month, for about $110 per week or $416 per month vs $160 per week with National to keep my Fusion which they wanted back anyway so they could sell it even without another one to put me in.

When I dropped at LAX, it was a ghost town - even the terminal buses were downsized to vans, maybe 3-4 customers in sight, yet National is still charging full price for rentals rather than charge a small amount to get them on the road earning some money vs the cost of parking them, which just likely increased given the insurance premium lift that will likely result from the RSW fire that just took out a huge number of stored cars.
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Old Apr 6, 20, 7:25 pm
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Originally Posted by 4aks View Post
how did you go about getting a good price quote ?
Call?

Originally Posted by 4aks View Post
I need a SUV in a few weeks , and pricing is sky high
How about local?
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Old Apr 6, 20, 7:55 pm
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Originally Posted by 4aks View Post
how did you go about getting a good price quote ?

I need a SUV in a few weeks , and pricing is sky high
Sixt is running a big discount/promo right now on their website.
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Old Apr 6, 20, 8:24 pm
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Originally Posted by 4aks View Post
how did you go about getting a good price quote ?

I need a SUV in a few weeks , and pricing is sky high
Just go to Sixt.com and look at their rates - but these discounts are for long term rentals, short term/weekly are much higher because they want their fleet out earning at least something, vs being parked. It appears only National/Enterprise is really dumb enough to incur costs to store cars vs just letting them out 30 days at a time, even if it's only at $10-15 per day.
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Old Apr 7, 20, 8:45 am
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Originally Posted by bocastephen View Post
Just go to Sixt.com and look at their rates - but these discounts are for long term rentals, short term/weekly are much higher because they want their fleet out earning at least something, vs being parked. It appears only National/Enterprise is really dumb enough to incur costs to store cars vs just letting them out 30 days at a time, even if it's only at $10-15 per day.
Not necessarily. I'm by no means an expert in fleet economics, but on the whole their strategy could be to preserve mileage/wear and tear on the cars rather than send them out for pennies a day. At least in the past, EHI bought their cars from manufacturers outright. Many other fleets (I don't know about Sixt) lease the cars from manufacturers and return them once the mileage reaches a certain threshold. Another thing to consider is that more traffic at the rental lot also means more staff that have to be available to service the cars, attend to customers, etc, which also increases the human-human interaction points.
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Old Apr 7, 20, 3:03 pm
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Yes I too would love to see real bottom dollar rentals, but realistically I don't think this will happen. Their choice to not give us cheap rentals is calculated, these companies have professionals with fancy degrees crunching numbers to make strategic decisions. That doesn't guarantee they will succeed as a company, or even that they will weather this storm, but it just means we may never see the desperation deals we are hoping for
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Old Apr 7, 20, 7:22 pm
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Originally Posted by dwbf11 View Post
Not necessarily. I'm by no means an expert in fleet economics, but on the whole their strategy could be to preserve mileage/wear and tear on the cars rather than send them out for pennies a day. At least in the past, EHI bought their cars from manufacturers outright. Many other fleets (I don't know about Sixt) lease the cars from manufacturers and return them once the mileage reaches a certain threshold. Another thing to consider is that more traffic at the rental lot also means more staff that have to be available to service the cars, attend to customers, etc, which also increases the human-human interaction points.
By the time these cars are put back into normal service, they will need to be replaced by inbound fleet changes, unless EHI has canceled their new car orders and plans on weathering out the losses from this mess by pushing cars back out past their sell-by date and letting them accrue higher miles for another year, and just selectively swap out cars that are in accidents or suffer from mechanical issues along the way. I still feel SIXT has the right approach - keep as many cars out on the road, even if revenue is cut substantially, it's better to earn revenue than to spend cost, and not worry so much about margins. You don't need an MBA to figure out it's better to earn $1 net than spend 0.10 net.

While National at LAX was a virtual ghost town, SIXT at LAX was pretty busy with cars going in and out during the time I was there, so their pricing approach seems to be working.
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