$ 3,376 / Week Economy Small Car

Would you like to visit the Rocky Mountains and the ocean this summer? Rent a car alone can be as expensive as a plane ticket to get there or accommodation in a 4-star hotel. The shortage of vehicles, including those who want to buy it, isn’t a headache, let alone diminish.

Posted at 6:30 am

While enjoying watching the prices of vacations to Calgary in mid-July, we have the impression that we really have Berlin. Airplane tickets are offered for $ 410, but some cars are about the same price per day. And it’s not about Porsche or luxury convertibles.

A small Rio costs $ 3,376 a week ($ 482 a day) on Expedia. The Rentalcars.com site offers the Corolla for $ 3,630 ($ 518 per day). Reputable big brands like Avis, Budget and Hertz have almost nothing.

Curiously, despite the price of gas, larger models can be more economical to escape to the mountains. Sonata will bring you back to about $ 1400. Forgetting that you could get it for $ 25 a day three years ago, it seems almost like a bargain.

It is better to go to Vancouver, where most cars are a little cheaper than Calgary. And for those dreaming of fleeing to the Gaspé Peninsula, Montreal rental companies charge around $ 1,100 a week for their small cars. If you’re carrying kids and camping equipment, budget $ 1500 or more for an SUV and $ 2000 or more for a minivan.

  • Price to rent a compact car for a week in Calgary in mid-July

    Screen capture from RENTCARS.COM

    Price to rent a compact car for a week in Calgary in mid-July

  • Price for a week-long rental of a compact car in Calgary in mid-July: $ 3290

    Screen capture from RENTALCARS.COM

    Price for a week-long rental of a compact car in Calgary in mid-July: $ 3290

  • Weekly car rental rates in Calgary in mid-July

    Screenshot of EXPEDIA website

    Weekly car rental rates in Calgary in mid-July

  • Weekly car rental rates in Vancouver in mid-July

    Screenshot of EXPEDIA website

    Weekly car rental rates in Vancouver in mid-July

  • Rent a car for a week in Montreal in mid-July costs nearly $ 1,200.

    Screenshots of HOTWIRE site

    Rent a car for a week in Montreal in mid-July costs nearly $ 1,200.

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These prices are absolutely not unusual.

“In my opinion, we are at historic heights,” said Annie Roy, president of Quebec Reorganization (RLVQ). After the price surge in the summer of 2021, the members expected it to return to normal in 2022.

This is not the case. Demand exceeds supply. And the prices are the same.

When the trip resumes, the car rental company will not be able to rebuild the vehicle (sold at the start of the pandemic) due to a shortage. The manufacturer first supplies the dealer. There is also a shortage of parts to repair broken vehicles and vehicles targeted by thieves. Many catalysts are disappearing. In addition, the price of parts has jumped from “25% to 45%”, and there is a labor shortage.

“It’s not Jojo for everyone,” concludes Annie Roy. She suggests that Quebécois book as soon as possible in the coming summer. Otherwise, they are in danger of becoming water.

Flytrippers, Andrew D’Amours, co-founder of a trading and advice site for travelers, can prove this. Upon arriving at Dallas Airport, he noticed that no rental company had available vehicles. In addition to booking “long ago”, globetrotter insists on the use of online comparators. No matter what his brother-in-law says, there aren’t always cheap signs in every city.

Another tip: Rent from a branch outside the airport premises. Sometimes it’s half price. It is worth taking a taxi to get there. You can also save a lot by rejecting unnecessary insurance.

And why not choose a destination that doesn’t require a rental car, even if that means paying more for planes and accommodation?

Holidaymakers are not the only ones who have to endure the turmoil in the automotive sector.

Desjardins has just published an analysis of the “serious imbalances” that are influencing this industry in Canada and putting pressure on prices. This document does not contain anything to encourage consumers who plan to buy a car this year.

The shortage of semiconductors, one of the main causes of the problem, is now being highlighted by Vladimir Putin. Many materials and raw materials used in the manufacture of semiconductors and other parts come from Russia and Ukraine. This can slow down the factory even further when inventory is already low.

“The recovery in global semiconductor production is promising, but we cannot expect it to return to normal by 2023. In this context, car sales in Canada in 2022 remain restricted and prices continue to rise. “Masu,” wrote Hélène Bégin, Chief Economist at Desjardins.

Therefore, we have to wait until next year until the overheating subsides.

Until then, drivers looking to get a new car will have to put an end to their bargains and be patiently worried. For example, the delivery time for an electric model is 12 to 24 months. The gas-powered model is shorter, but there is foresight when his lease ends.

Low inventories, as if that weren’t enough, “means that the interest rates offered by manufacturers are significantly higher than the interest rates offered before the pandemic began,” Hélène Bégin said. is showing. For very popular models, that percentage can exceed 6%.

In this unprecedented situation, the value of used cars continues to grow. In fact, in 2021, the average loan for used car purchases increased by almost 10% to reach $ 19,000. According to Desjardins, jumps are 23% ($ 34,000 to $ 42,000) for popular light trucks, vans and SUVs.

According to the latest data from Statistics Canada, the average Quebec transportation cost in 2019 was $ 10,492. It’s interesting to see how the pandemic affected this important budget item when the 2020 statistics were released.