Aftershocks In Japan Impact Car Hire Prices

The disaster in Japan is hitting closer to home, with car hire brokers warning of increasing rental rates for Easter and possibly the summer months. Holiday Autos, Your Car Hire, and Affordable Car Hire stated that a component supply slowdown is affecting their inventory.

This shortage of vehicles and parts is not expected to be rectified in the immediate future.

Most affected by the situation are Japanese models and large Peugeot Citroen cars. According to Affordable Commercial Director Nick Marney, car hire companies are not likely to receive new PSA Peugeot Citroen cars during April.

To make up for the shortage, Affordable is receiving additional cars from local suppliers that have slightly older fleets.

Mr. Marney reported that the vehicle shortfall could reach Spain and other traditional vacation destinations, just as their popularity was beginning to increase. Customers are now avoiding Egypt in favor of these spots. Sandra Downs, head of trade sales with Holiday Autos, stated that all of Europe is beginning to experience the shortage and an impact on summer prices is likely.

A Spanish supplier advised Your Car Hire Managing Director Ruth Bligh of the short supply of Peugeots, especially the larger models that golfers tend to rent. This represents a key market for Your Car Hire. After the supply of car parts from Japan dwindled, PSA Peugeot Citroen announced a temporary production halt at its Slovakian plant.

Car dealers receive preferential treatment over rental companies during a supply shortage. This may create a shortage of vehicles and higher prices for the holiday market. A lack of car finance in 2010 prevented suppliers from borrowing money to acquire new fleets, creating the same result.

One spokesperson with Avis UK reported that suppliers will begin experiencing parts shortages in late April. Avis is working with various manufacturers to reduce the impact from any single supplier.