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Rethink The Future To Avert A Race To The Bottom
Rental car operators heard a sobering industry message and a stern challenge at the close of the International Car Rental Show.
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SEARCHMENUSEARCHRental car operators heard a sobering industry message and a stern challenge at the close of the International Car Rental Show.
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Commercial, rental, and government fleets saw monthly sales decline again as 2024 totals are hovering close to 2023 levels.
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Rental fleets are propping up the overall upward trend in fleet vehicles sold so far this year.
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The total U.S. supply of available unsold new vehicles opened May at 51% above a year ago, but volume is still down 26% from 2019 levels.
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The share of new-vehicle sales from luxury brands drove up average transaction prices, when combined with fewer discounts and incentives, caused new vehicle affordability to fall.
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Commercial fleet sales were down more than 14% last month, tying its January decline and continuing a string of monthly losses.
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ICRS 2024: The annual industry update relayed positive signals for overall industry growth amid some uncertainties and volatility for auto rental fleets.
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Year-to-date sales in commercial, rental, and government fleet sectors are scraping 600,000 vehicles sold.
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Domestic brands continue to have the highest inventory while Asian imports rank lowest.
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With new-vehicle inventory rising in the U.S., downward price pressure and higher incentives appear to be key drivers of the market’s momentum.
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February sales figures show a major gain in new rental cars that makes up for flat or lower sales in the commercial and government fleet sectors.
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