High prices and low supply have people looking for creative solutions.
As more people get vaccinated against COVID-19, more and more will want to travel to blow off the quarantine stink. But that could get costly depending on where you’re heading. In Hawaii, travelers are struggling to find rental cars as demand dramatically outstrips supply. This has forced some, for better or worse, to find unconventional solutions when reaching the island state, with many turning to U-Haul.
Travelers are gobbling up pickups, cargo vans, and box trucks as prices for rental cars spike, according to Hawaii News Now. The publication reports that last month, the cheapest rental car available on Maui was a Toyota Camry that cost $722 a day, though prices have come down since then. The demand is so great that those looking to rent from U-Haul to do actual hauling are coming up empty-handed. One Kihei, Hawaii resident told the publication that he wanted to rent a box truck but couldn’t because none were available. U-Haul Marketing President Kaleo Alau said the company is doing what it can to encourage only using the trucks for moving.
save over $3,400 on average off MSRP* on a new Toyota Camry
Demand for cars, new or used, has skyrocketed during the pandemic as people do their best to socially distance themselves from one another. However, there are several reasons why demand is outstripping supply. The start of the coronavirus pandemic disrupted automotive production, which the ongoing semiconductor shortage has only exasperated. Honda, General Motors, Ford, and others have had to suspend production because of the lack of chips. Ford, for example, is building its popular F-150 pickup with missing features.
The situation is so bad that used car prices are continuing to climb to astronomical heights. The average used car is nearly 30 percent more expensive than it was last year, and the ongoing supply shortage will likely see that rise as more people hit the road this summer. Everyone is itching to get out, and that’ll probably mean higher car prices – new, used, and rental – for the foreseeable future.