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Here’s why rental car rates are increasing

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Rental car rates are increasing. Here's why.

If you’ve made a car reservation anytime within the past couple of weeks you’ve probably noticed that your rental car rates have increased…by a lot. Here’s why.

Car Rental rates are going to increase whether you like it or not. Some of you have probably made reservations months ago on a car, changed your mind, made the same reservation again only to find out that your rate has doubled (and in some cases…tripled.) According to some Redditors on their /r/Frugal subreddit on their latest thread on the matter from earlier yesterday (June 6, 2018), there are a couple of valid reasons for this.

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According to one Rental worker who actually has seen rates increase it’s because demand for rental vehicles at the beginning of summer is greater than the availability. A simple economics lesson will teach you that in order to reach an equilibrium point that matches supply and demand, you’ll have to increase your price temporarily.

Several Redditors commenting underneath this rental car worked echoed his response with similar experiences of their own where they went to rent a car and came up short.

In addition to these shortages, it looks like Ford is going through a massive recall of literally millions of its vehicles. According to CNNthere’s a nationwide recall on Ford Fusions and Focuses, two mainstays of the rental car fleet, affecting 1.4 Million units. That’s a lot of rental cars out for repairs!

This redditor shed some light on pricing even further by explaining that it’s really up to the luck of the draw at the moment you rent a car.

So, if you’re seeing extraordinarily high rental rates when you go to rent a car, don’t be alarmed. DO know that, like many things on the internet, prices adjust in real-time. If you’re patient, go ahead and wait a couple of hours to see how your rental rates turn out. Cross shop on other sites, look at Turo.com, check out ZipCar as an alternative, and if you’ve got a Costco membership or know someone who does, check out prices on their too.

Rental rates might be up at the moment thanks to it being Summer among other reasons but don’t fret. Give it a couple of hours or even a full day and try again. You’re bound to find a cheaper price out there.

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