AUTHOR Cherie Carter

Why are Car Hire prices so much higher this year?

Thinking of arranging a Car Hire for the festive season. Started to look online for Car Hire quotes and literally left stunned at what the Car Rental suppliers are quoting?

Let me explain why Car Hire prices are higher than what you would normally expect.

The main reason why car hire prices every year are higher than what you would expect to pay throughout the rest of the year is due to the increase in demand for car hire. A range of different types of people looking to hire vehicles over the Christmas and New Year Period. Travellers flying back into the UK to spend the festive season with friends and family. Then you have the requirement to hire a larger car or an additional car. Also especially in places like Central London, drivers that do not own a car require a rental car to get around as public transport is reduced over this period.

To make matters even harder, rental suppliers fleet levels are a lot lower than they would like or usually have. This is caused by the reduction in fleet levels which were intended to get through the pandemic to manage the reduction in demand caused by the lockdown measures implemented by the UK Government. Sounds like a perfect plan, you would think.

semi-conductor Chip Shortage

However, then arrived the Semi-Conductor Global Chip Shortage. Surprisingly most customers when you explain are not aware of how much of an issue this is. This is an ongoing issue not just for car hire suppliers but consumers looking to purchase a new vehicle. Lead times on purchasing a vehicle to actually receiving can be anything up to 12 months or sometimes longer. There are several reasons why we are seeing this shortage.

Rental suppliers simply cannot get anywhere near the number of cars needed to service the demand, or at least in reasonable time scales. Often delivery dates for new cars are pushed back by the car manufacturers which is a logical nightmare for planning or knowing how many cars will be available to rent out. Overbooking is something rental companies want to avoid to prevent letting customers down on arrival.

ways To Get A Cheaper Car Hire Over Christmas?

1. Surprisingly it can be cheaper to hire a car for a longer period. All rental companies have a set date when they impose their Christmas tariff, this is usually around the 15th of December. The pickup date for any car hire is what determines the rate used. For example, looking to hire a car on the 20th Dec, you hire from the 15th the saving could be very favourable.
2. If you are willing to travel further to collect a Car Hire. Often Car Hire in premium parts of the UK such as Central London will be a lot more expensive than locations either in Greater London or on the outside of London.
3. Book as far in advance as you can, I would suggest around 6 months or earlier.
4. Try to rent either a mini, economy or compact car. Do you really need a larger car? Prices from intermediate size cars or above tend to be a lot higher than entry-level cars.
5. Avoid premium cars. Thinking it would be nice to treat yourself and hire a Mercedes or BMW. Maybe leave it for another time. Renting a premium car over the festive season will leave a huge hole in your pocket.
6. Last of all, if you are looking to hire a car via ourselves. Do not just book online, call or email to see if any discounts are available as more often than not we can do something better than what you will see online.

If you have any other enquiries or questions please feel free to contact one of our car hire experts!

Tel – +44 113 2899281 / sales@indigo.ecomfixers.com / Or use our online chat function.

Having working solely in the car hire industry since leaving school, car hire/travel is a huge part of my life and something that gives me great satisfaction and enjoyment.  I love coming across new products/locations and sharing these details with our customers via our online platforms.

Cherie Carter

Traveller