Affordable Car Hire makes complaint to Spanish Car Hire Authority over summer price hike
May 2nd, 2010 by elisa

Affordable Car Hire is making a complaint to the Spanish car rental authority in Adalucia over the predicted rise in car rental prices in summer of up to 250%.

The company said the cost of hiring a vehicle was expected to soar in the peak season as firms struggled to meet strong demand with limited fleets, a repercussion of the banking crisis as banks tighten their belts for loans.

Last winter, the average weekly car rental in Malaga was £65 but Affordable Car Hire has calculated that the price will rocket to at least £228 for the same car between July and August.

Sales and marketing director Nick Marney said the firm was so concerned by the price hike that it would lodge a complaint with AESVA – the association for rental vehicles in Andalucia.

“We will complain about the difference in prices,” he said. “The same vehicle is being sold for too low in the winter, and far too high a few months later.”

Marney said that this situation is occuring because ‘buy back’ schemes run by manufacturers had stopped with the onset of the recession, so rental firms had sold off cars at low prices. Banks refused to issue loans so firms were unable to buy new fleets, creating a shortage of cars at times of strong demand, such as the summer months and school holidays.

“Firms have become stuck in a vicious circle, and prices are going to skyrocket,” he said.

Spain is expected to be hit particularly hard by the price increase, because of holiday destinations such as Malaga and Alicante where tourists often need cars to travel around.

Advice at the moment is to book cars early to avoid not being able to get one at all. We’ll keep this blog updated if there are any changes to prices and/or a response from AESVA.

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