AutoSlash

Well, we just about hit $4/gal average yesterday and the Russia-Ukraine situation shows no sign of letting up, so we may be able to declare a winner in this debate sooner rather than later.

stimpy

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fatlard

Reading the last couple of pages and it looks grim in terms of prices for summer rentals. I currently have a weekly rental in Miami Airport for $560 on 06/2022 with free cancellation. There are some non-refundable that can be as low as $450.
@AutoSlash Should I keep the free cancellation and wait and see if I can get below $450 or just book the $450 nonrefundable and be done with it?

AutoSlash

We always recommend keeping the free cancellation rate and tracking it with us unless you are less than a week out. Prices can be fairly volatile. No need to lock yourself in as you may end up around $450 in the end anyway--possibly even lower. No guarantees, but that's our best advice.

m907

Californians are used to ridiculously high gas prices, and $5/gallon won't stop people from living their everyday lives. I'm talking about $5/gallon in places like Florida. That would certainly depress tourism.

AutoSlash

Maybe for some folks planning a road trip, but think about this.. If gas rose another 25% from $4 to $5, and the average person who flies down to FL rents a car for a week and drives, say 200 miles, then even with a car that gets only 20 mpg, the incremental cost is only $10 more. Is that really going to impact demand?

Even someone driving 1K miles would only pay $50 more. People didn’t seem to rent (much) less when rental prices doubled from $35/day to $70/day, and that was much more impactful; so not sure gas prices are going to have a significant impact.

s0ssos

Californians did change their driving habits when gas prices rocketed up 2008. They would actually combine errands, drive less in general. But that was cause gas shot to new heights never prior seen and also at a rapid rate.
Because this has happened before Californians aren't as shocked, and it won't change as much. Plus, it is in line with all the other inflation going on, so only logical this thing would catch up and rise in price like eggs (which I think have increased more in price than gas).

TXJeepGuy

Exactly. My business travel plans (most of my renting) certainly won't change over that. My personal travel rentals tend to be free with reward days, so if the gas is my only cost, I don't care either.

At some point you might see the more economical cars priced on par with some of the less fuel efficient options based on what people decide to rent, but I don't think it makes a huge demand difference. Places you fly to where you need to rent a car won't have abundant public transportation overnight due to a fuel price increase.

sdsearch

Actually, it's quite the opposite for some people in some cases.

I have two options for some trips:

1. Drive a whole day to get there in my car.

2. Drive a short distance to the airport, fly an hour or so (thought the total trip time is of course longer), and then rent a car and drive just an hour or two from there to where I'm visiting for a few days.

So when gas prices are low, I might lean toward option 1, the main downside being the tiring nature of driving all day. But when gas prices are high, I might lean toward option 2.

So to me high gas prices are a barrier to long road travel, but not necessarily to short road travel.

Keep in mind that is what are very high gas prices in the USA have always been low gas prices in many other countries. So those of us used to renting overseas in the past are used to paying $8 / gallon or more for gas in some foreign countries. Meanwhile, I'm still not sure whether we're going to get to $8 / gallon anywhere in the USA or not.

And even for me long road travel is still at pretty good gas mileage. The kind of travel that high gas prices are even more likely to be a barrier to is things like RVing around the country. But then again, the people who would otherwise be RVing might look at other travel, and that might involve short-distance rental cars in some cases.

Auto Enthusiast

Even when new cars become more available, might rental companies decide they still like the idea of buying 3-4 year old lease returns for a significant portion of their fleet?

AutoSlash

Unlikely. It's much more of a hassle, and presents financing challenges.

m907

Valid points, but I just don't think that's the way people actually think. I have a tuner for my car and whenever I start to think I should install the high-performance tune that requires 91 octane gas, I see a gas pump with 91 octane for an 80˘ premium, then I think I'm doing just fine on 87. It doesn't matter that 80˘ per gallon adds up to only a couple hundred bucks per year.

When gas reaches $5+ per gallon, you're talking $90-$100 fill-ups for normal cars like Altimas, Explorers, etc., not just big trucks. For normal people (e.g. everyone outside California), that causes a visceral reaction. Businesses will start questioning whether travel is necessary when gas is so expensive. None of this is to mention jet fuel, which will probably cause airfare to rise.

We'll see how it plays out.

WGretzky

Anyone know the current situation at FLL? We will be flying into FLL this weekend and staying in Naples.

i need a 7 seater so booked a minivan with AVIS. I was reading horror stories about cars not being available so I also have one booked with HERTZ and enterprise to increase my chances that I will get at least a minivan if not a full or extended 7 seater SUV ".

does anyone know which company i will have the best chance? should i be worried?

not sure it matters but i have preferred plus with Avis, PC with Hertz and Platinum with Enterprise

any guidance would be great!

TIA

EAJuggalo

I think you'll see some places in CA at $8/gal by Memorial Day unless something gets done to lower the market price of oil. There are already some places in SF that are at $7/gallon for diesel.

It's would take a lot to get me to change the personal trips I have planned, but I might reconsider some that haven't been planned yet. I also might look at more fuel efficient vehicles when renting.

m907

Good point...we may be seeing pricey large SUVs out on the National aisle because few want them.