Rental car availability is at an all-time low: How to score the vehicle you need
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The battered travel industry is starting to bounce back as people plan for long-delayed vacations, thanks to Covid-19 vaccinations on the rise and infections on the decline. As a traveler, while you’ll see some enticing credit card bonuses right now, you very well may run into trouble in the car rental department. Because shortages are common these days among rental agencies, many travelers will pay a pretty penny and settle for a make and model that are far from their first choice.
What’s causing rental car shortages?
First off, ailing car rental agencies sold a significant number of vehicles from their fleets to stay afloat during the pandemic. As such, many are not able to accommodate the increasing demand for rentals.
By way of example, in the third quarter of 2020, Avis Budget Group sold off 75,000 of its cars in the United States, per the company’s earnings report. Similarly, Hertz sold tens of thousands of vehicles in 2020 in the wake of its Chapter 11 bankruptcy filing. (The company has since secured significant funding and plans to emerge from bankruptcy in the coming months.)
Another reason for the lack of available rental cars is that agencies can’t acquire new vehicles quickly enough. This is a direct result of automobile manufacturing delays brought on by a shortage of semiconductors. These electronic chips have become scarce in auto factories, as manufacturers reallocated many of them for use in items that were in higher demand, such as laptops and smartphones.
Problems such as the lack of rental vehicles are compounded by the high number of travelers opting for road trips instead of flights. Surveys have found that more Americans plan to take road trips and are expected to shy away from flying in the long-term wake of the pandemic.
What can you expect?
Without a doubt, you can expect to pay more for your next rental car, and you’ll likely face long lines at the rental agency counters.
Higher prices
As we’ve mentioned, prices are higher. And that may remain the case until the major players like Avis Budget Group and Hertz acquire enough vehicles to accommodate the demand.
Long pickup lines
As The Points Guy has reported, you may encounter long pickup lines when you arrive at the car rental agency. This can be caused by customers struggling to find a vehicle in the size and price range to meet their needs.
6 tips for getting a rental car at the lowest possible price
While many of these tips were already applicable pre-pandemic, some of them are helpful now more than ever due to the rental car shortage:
Book as early as possible
This is always a good rule of thumb, but it’s more important now than ever. The sooner you book your car, the better your chances of getting a make and model that suit you. To take it one step further, you’ll probably want to make sure there is a suitable vehicle available before you book the flight or hotel for your trip.
Adjust your rental times
Making changes, if possible, to your pickup and drop-off times could bring you better prices or a wider selection of cars from which to choose.
Schedule an off-airport pickup
You can often save on taxes when you pick up your vehicle at an off-airport car rental location. This tip calls to mind the success story of a Million Miles Secrets reader named Mark, who saved more than $100 in taxes when he picked up his car at a location in Boston away from the airport.
Join a loyalty program to avoid lines
Many car rental companies offer free loyalty programs that include valuable perks, like letting you skip the pickup lines when you arrive for your car. Honestly, who wants to kick off their vacation by waiting more than an hour in line for your set of wheels? Examples of these programs include the Hertz Gold Plus membership and the Avis Preferred membership.
Utilize websites that help you find the best price
One example is AutoSlash, a website that will help you find the best deal on a reservation when you enter parameters like your destination and travel dates. Not only will it bring up the best value, but it will also notify you if a better deal comes along before the dates of your trip.
Pay with a credit card that gives you discounts
For instance, when you use the Chase Sapphire Reserve card, you can score discounts on rentals with National Car Rental, Avis, and Silvercar. Similarly, The Platinum Card® from American Express provides several benefits from Hertz, including discounted rates.
As rental companies gradually add to their fleets, renting a vehicle may again become as easy as in the pre-pandemic days. As you can see, in the meantime doing the proper legwork and being a bit flexible can go a long way to getting a suitable car at an affordable price.
Chase Sapphire Reserve®
Annual fee
$550
Welcome offer
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $900 toward travel when you redeem through Chase Ultimate Rewards®
Why we like it
The Chase Sapphire Reserve is the premium Chase travel credit card. In addition to earning 3x points on travel and dining purchases, this card comes with a $300 annual travel credit and other travel and dining perks that quickly make it worth the $550 annual fee. One of our favorite benefits is the 50% point value boost that cardholders get when redeeming through the Chase Ultimate Rewards travel portal.
Who is it best for?
The Chase Sapphire Reserve is best for those who travel relatively frequently. With protection against canceled and delayed flights, access to 1,300+ airport lounges and an up to $100 Global Entry credit, those who travel internationally will enjoy this card. This card also increases the value of Chase Ultimate Rewards by 50% when redeeming through the Chase Travel Portal. This applies to rewards earned with any of their other credit cards, making it the ideal card to double up with a second Chase card with complimentary earning categories.
Credit Score Recommended
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Excellent
780
850
Details
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $900 toward travel when you redeem through Chase Ultimate Rewards®
- $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year.
- Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases
- Get 50% more value when you redeem your points for travel through Chase Ultimate Rewards®. For example, 60,000 points are worth $900 toward travel
- 1:1 point transfer to leading airline and hotel loyalty programs
- Access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select and up to $100 application fee credit every four years for Global Entry, NEXUS, or TSA PreCheck®
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more
Pros
- Travel credit of up to $300 covering a flexible range of travel related purchases
- Airport lounge access through Priority Pass
- 50% value boost when redeeming points through Chase Travel Portal
- Long list of travel protection benefits
- Flexible and transferrable points
Cons
- $550 annual fee, and $75 annual fee per authorized user
Reward Rate
- Earn 10x total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards®.
- Earn 5x total points on flights through Chase Ultimate Rewards®.
- Earn 3x points on other travel and dining.
- Earn 1 point per $1 spent on all other purchases
APR
21.49% – 28.49% Variable
Credit Needed
Excellent
Foreign Transaction Fee
$0
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Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)
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