AM Online

New car shortages will prompt festive rental boom, predicts VW

Volkswagen Financial Services (VWFS) Rent-a-Car logo

Volkswagen Financial Services (VWFS) has predicted that new car supply shortages will trigger a festive car rental boom for franchised retailers operating its Rent-a-Car service.

The captive finance house expects motorists to turn to rental to get behind the wheel of newer, larger and more reliable vehicles over the coming weeks after Rent-a-Car delivered 144% year-on-year growth in November.

Online bookings also sky-rocketed, it said, with more than 220% growth compared to 2020.

Mark Forton, VWFS’s director of mobility services, said: “This substantial growth in the rental market can be attributed to a number of factors around a shortage of new vehicles, increasing ease to book and for lots of people, a new way of travelling.

“People who perhaps have no vehicle or run smaller vehicles year-round are hiring larger, more reliable vehicles to fulfil their Christmas plans of visiting friends and family – which will hopefully be very different from last year’s muted festive season.”

VWFS said that the semi-conductor shortage limiting the supply of new vehicles to market had seen many potential car retail customers turn to rental in the short-term.

European new car registration data analysed by Jato Dynamics has indicated that Volkswagen Group brands have been hard-hit by the current shortage of semiconductors and other components to the manufacturing sector.

Jato said that vehicle production issues had a “notable impact” on the overall best-selling vehicle rankings in November.

Registrations of the Volkswagen Golf and Toyota Yaris fell by 72% and 65%, respectively, as top position was occupied by the Renault Clio.

AM reported last week on a YouGov survey which indicated that – despite reports of motorists giving up their vehicles during the COVID-19 lockdowns – people still want to own their own car.  

The mobility survey of 2,400 people, conducted on behalf of technology company Stripe, found that 63% of people are ‘not interested’ in taking advantage of shared mobility schemes such are ride hailing or car sharing services.

Click here for manufacturer best practice and procurement insight

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Login to comment


No comments have been made yet.