Javascript is not enabled.

Javascript must be enabled to use this site. Please enable Javascript in your browser and try again.

Skip to content

Learn about car safety features like active cruise control and smart headlights with AARP Smart DriverTEK.

Content starts here
CLOSE ×
Search
Popular Searches

Games

Car rental

AARP daily Crossword Puzzle

Hotels with AARP discounts

Life Insurance

AARP Dental Insurance Plans

Travel

Suggested Links
Help Show me my account info Change my Address How do I contact AARP? Where is my membership card? How do I get a digital card?
Red Membership Card

AARP MEMBERSHIP 

AARP Membership — $12 for your first year when you sign up for Automatic Renewal

Get instant access to members-only products, hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. 

 

120x30-AARP-logo-red
Join
Renew
Enroll
Rejoin

AARP en Español

Join
Renew
Enroll
Rejoin
Leaving AARP.org Website

You are now leaving AARP.org and going to a website that is not operated by AARP. A different privacy policy and terms of service will apply.

Continue Cancel

Rental Car Shortage Causes Rates to Skyrocket

Tips on how to book a car without breaking the bank

Vehicles sit parked as Dollar Thrifty
Bloomberg/Getty Images
By
Larry Bleiberg and Nancy Dunham
 
AARP
Published May 04, 2021

It used to be that reserving a rental car was an afterthought, the last thing a traveler did before taking a trip.

This year, it's best to make it the first.

In recent weeks, travelers have reported rates topping $500 a day in hot spots like Hawaii and Puerto Rico. Prices are also high — and car availability limited — across Florida and in Alaska, where Anchorage airport agencies are sold out for the summer.

A recent study by CheapCarRental.net found rental car rates across the U.S. averaging about 30 percent higher than last May, while in Hawaii and Florida they're up by more than 50 percent.

And the problem will likely get worse.

Travel experts and rental companies say several factors are fueling the surge, all related to the pandemic.

In recent months, vaccinations have sparked a travel boom as more people take to the skies to visit friends and families, and plan vacations.

But this comes at a time that rental fleets have shrunk. When demand dropped last year during the pandemic, companies sold off a large proportion of their rental fleets to raise cash. Auto dealers and sales centers gladly snapped up those offerings due to a shortage of used cars. That leaves rental companies scrambling to find vehicles to ramp up supply, says Lauren Fix, editor in chief of Car Coach Reports.

A shortage of semiconductor chips used in high-tech automotive systems, as well as a scarcity of rubber and steel, has slowed auto plants and the production of new cars. “Fleet sales are last in line, so it has been difficult to quickly ramp up fleets to match demand,” says Mark Mannell, CEO of CarRentalSavers.com.

Like many firms, Enterprise Holdings, which runs Alamo, Enterprise and National, says it's finding it hard to acquire new cars due to the semiconductor chip shortage.

"We continue to work closely with our manufacturing partners to secure additional vehicles,” the company said in a statement. “If you're planning travel, we encourage you to reserve a vehicle as early as possible. Providing flexible travel dates and branch pickup locations in your search may also help increase your options."

Jonathan Weinberg, CEO of AutoSlash.com, was one of the first to identify the problem back in February, when he warned of a coming “car rental apocalypse.” He expects it to get worse in the coming months, citing Montana — expected to be a hugely popular destination this summer — as an example.

Car rental agencies at the airport serving Glacier National Park in Kalispell, Montana, are completely sold out for the summer, he says. And the problem has spilled over to airports more than 100 miles away, in places like Missoula and Bozeman, as travelers look for other rental options across the region. The same thing is happening in Alaska.

Due to that demand, prices are soaring.

"Prices are at the highest levels I have seen in my 15 years of tracking rental rates,” Weinberg says.

Prices currently range from about $100 per day for Memorial Day weekend in Florida to up to $609 a day in Puerto Rico, he says.

But not all areas of the country have a problem. Availability differs market to market, and week to week. For example, cars are inexpensive and readily available this spring in places like El Paso, Texas; Sacramento, California; and Rochester, New York.

Still, experts expect the shortage to continue for most of the year in places catering to vacationers.

"Unfortunately, there is no quick fix, and with vaccination rates expanding, we'll likely see even more demand for travel over the summer and even higher prices,” says Nick Ewen, senior editor of The Points Guy, a travel advice website. “I would expect this to last through the summer and into the early fall at least.”

Tips for finding an affordable car rental

  • Reserve a car rental before booking a flight, and consider shifting travel dates based on car availability.
  • Make a reservation as soon as possible. Rates will likely rise the closer you get to the travel date.
  • Check prices at non-airport rental agencies. Even if it requires a long taxi or Uber ride to get to your car, you can still reap considerable savings.
  • Always book pay-later rates (no credit card required) so you can cancel and rebook if a better deal comes along. Use AutoSlash.com, which automatically checks discount codes and numerous travel websites, to find the best deal. And always try discount codes, including AARP and corporate codes, and any others you may have through frequent flier memberships.
  • Consider booking for a longer rental period and then returning your car early, because longer rentals usual carry a lower per-day fee. In many cases, the company will prorate your rental if you return it early. But read the fine print: Some agencies will revert to a more expensive daily rate if you change your reservation.
  • Sign up for the major car rental companies’ loyalty programs. They're free to join and will let you skip the counter — and the long lines — at airport locations.
  • Get creative. Travelers have resorted to renting a U-Haul instead of a passenger vehicle for their vacation. While it may not be as flashy as a convertible, the cost can be considerably lower.
  • Consider Turo.com, which arranges car sharing for individuals, much like an Airbnb for cars.
  • Rethink your plans. It may be cheaper to book rides on Lyft or Uber to get around your destination instead of renting a car.

Unlock Access to AARP Members Edition

Join AARP to Continue

Already a Member?

AARP Travel Center

Or Call: 1-800-675-4318

Enter a valid departing date

Enter a valid returning date

Age of children:

Child under 2 must either sit in laps or in seats:

Enter a valid departing date

Age of children:

Child under 2 must either sit in laps or in seats:

Enter a valid departing date

Age of children:

Child under 2 must either sit in laps or in seats:

Flight 2

Enter a valid departing date

Flight 3

Enter a valid departing date

Flight 4

Enter a valid departing date

Flight 5

Enter a valid departing date

+ Add Another Flight

Enter a valid checking in date

Enter a valid checking out date

Occupants of Room 1:

Occupants of Room 2:

Occupants of Room 3:

Occupants of Room 4:

Occupants of Room 5:

Occupants of Room 6:

Occupants of Room 7:

Occupants of Room 8:

Enter a valid departing date

Enter a valid returning date

Age of children:

You didn't specify child's age

Occupants of Room 1:

There are children in room 1 without an adult

You didn't specify child's age for room 1

Age of children:

You didn't specify child's age

Occupants of Room 2:

There are children in room 2 without an adult

You didn't specify child's age in room 2

Age of children:

You didn't specify child's age

Occupants of Room 3:

There are children in room 3 without an adult

You didn't specify child's age in room 3

Age of children:

You didn't specify child's age

Occupants of Room 4:

There are children in room 4 without an adult

You didn't specify child's age in room 4

Age of children:

You didn't specify child's age

Occupants of Room 5:

There are children in room 5 without an adult

You didn't specify child's age in room 5

Age of children:

You didn't specify child's age

Age of children:

You didn't specify child's age

Child under 2 must either sit in laps or in seats:

You have more than 6 people total

Please select a trip duration less than 28 days

There must be at least 1 traveler (age 12+) for each infant in a lap

Enter a valid start date

Please select a Pick Up Time from the list

Enter a valid drop off date

Please select Drop Off Time from the list

Select a valid to location

Select a month

Enter a valid from date

Enter a valid to date

Benefits Recommended For You

See All