Japan Disaster to Influence Car Hire Rates

With car rental prices already expected to rise for the busy summer period, it is reported that the recent disaster in Japan has severely restricted the manufacture of parts for the auto industry in Europe. The knock on effect is such that car rental firms may not be able to add to its fleet to meet demand, resulting in a hike in rates.

There will be major challenges ahead in getting key components for car hire fleets. Many rental brokers may not notice the changes yet but this could start to take effect a couple of months from now. Japan’s auto industry is trying to get to grips with the disaster, which is threatening to restrict operations in the industry for a while to come. It will need to be ascertained which auto parts makers have been hit and to what extent.

In the event of a shortage, preference will be given to car dealers over car hire companies, which will no doubt leave the car rental market short of vehicles for the holiday season. This in turn will push prices higher, something the industry witnessed last year, when shortage of finance meant little borrowing to acquire new fleets.

Many rental firms will now turn to local suppliers to stock up on their fleets whilst many others will use older fleets to add to existing ones. Although some brands like Citroen and Peugeot are manufactured in Europe and elsewhere, many parts and components for these brands come from Japan.  The message is simple, to avail of cheap car hire, book early to avoid disappointment.