If car purchases are falling, you can just imagine why car rentals are holding back. People turning to car rentals are sure to be decreasing as well and it seems that this is more than enough reason for them to stop new car purchases for now.
A noted practice that car rental companies do is to unload old rental cars to interested buyers. However, it seems that this practice has been affected to by the credit crunch and they are forced to make do of what cars they have on hand. A fraction of their funds used to buy new cars is taken from amounts they get from selling old cars in their fold.
Rental car operators have been hit by the same credit problems that car dealers and consumers are facing. As a result, drastic cuts for new cars are being experienced by automakers. The car rental companies are also finding it difficult to find car dealers willing to purchase their used vehicles thus forcing them to put on hold the purchase of new vehicles available in the market.
Via CarRentals UK
Tags: automakers, car dealers, car purchases, car rental companies, car rentals, car roster, credit crunch, new cars, old cars, rental car