Yahoo Finance 16 Rental Car Companies, Ranked from Worst to Best
In this article, we are going to discuss 16 rental car companies, ranked from worst to best. You can skip our detailed analysis of the history of the car rental business, biggest player in the market, effects of the Covid-19 pandemic, shortage of vehicles, introduction of EVs and future prospects of the car rental industry and go directly to 5 Rental Car Companies, Ranked from Worst to Best.
Even before Karl Benz and Wilhelm Maybach invented the modern car that we know today, people had been renting out horses and carriages for centuries. In fact, the rental business has been around for thousands of years and even in ancient Rome, people used to rent out horses and chariots.
The earliest car rental records are from 1904, when a bicycle shop in Minneapolis started renting out cars. Then in 1912, Martin Sixt founded the first rental company ‘Martin Sixt Autofahrten’ in Bavaria with three vehicles. The company Sixt is still in existence today, with locations in over 100 countries.
Currently, the largest rental car company in the world is Enterprise Rent-A-Car. With approximately 10,000 offices in almost 100 countries, Enterprise currently boasts a fleet of over 2.1 million vehicles and over 80,000 employees worldwide. Enterprise had an estimated revenue of $30 billion in 2022 and ranks 16th in the Forbes Top 500 Private Companies List. Enterprise Holdings also incorporated the National and Alamo brands in 2007.
The Covid-19 pandemic had devastating effects on the overall travel travel industry and the rental car business was no exception. After years of steady and continuous growth, car operators had to eventually sell off huge parts of their fleet and Hertz, of the Hertz Global Holdings, Inc. (NASDAQ:HTZ), even filed for bankruptcy.
According to statistics by companies such as Sixt, Hertz and Budget, ridership numbers dropped by 61% during 2020, when only 17.3 million cars were rented in the U.S. This is in stark contrast to 2019, when the number of vehicles rented reached 44.5 million.
Industry revenue also plummeted in 2020 and according to the United States Census Bureau, there was a drop of 19.7% between the industry revenue of the fourth quarters of 2019 and 2020. Also, 40,000 positions were eliminated in the American car rental industry in 2020, according to a report by the BLS Beta Labs. Major rental car operators also sold off more than 770,000 vehicles, or in other words, 1 in 3 vehicles that were previously rented out by these companies, were put out of service.
However, when the lockdowns were finally lifted and people began to travel again, the rental car businesses were faced with a new problem. After going into survival mode during the pandemic, the industry was not able to keep up with this sudden surge in demand in 2021, resulting in an acute shortage of vehicles and thus, sky-high prices. The semiconductor chip shortage, which was particularly rough on the auto-production industry, made matters even worse, creating a lack of inventory for car rental agencies to purchase from. Forbes has revealed that the average customer-cited rental fee at the end of 2022 was around $90 per day, compared to $76 in 2019.
Although Hertz filed for bankruptcy protection in May of 2020, the company has since agreed to a bankruptcy plan, and it escaped the financial doghouse in July 2021. In fact, the company is back in growth mode and even ordered a massive fleet of 100,000 Model 3 vehicles by Tesla, Inc. (NASDAQ:TSLA), to electrify its rental cars. More recently, the company has also added the Tesla, Inc. (NASDAQ:TSLA) Model Y vehicles to its order. Although Hertz expected full delivery of its 100,000 EVs by the end of 2022, Tesla, Inc. (NASDAQ:TSLA) was only able to deliver about half of them.
According to ReportLinker, the future of the global car rental industry looks promising and it is expected to reach an estimated $145.6 billion by 2027, with a CAGR of 6.7% from 2021 to 2027.
That said, here is a list of 16 Rental Car Companies, Ranked from Worst to Best.
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Methodology:
Renting a car in the U.S. has become easier now than it was during the rental car shortage. According to a recent study, renting a car for people in the United States has generally been a positive experience. The ACSI Travel Study 2022-23, shows that satisfaction with the industry has risen by 1% over the past year.
To keep our list as objective as possible, we’ve gone through several different reliable sources to collect data, such as American Customer Satisfaction Index Travel Study 2022-23, J.D. Power 2022 North America Rental Car Satisfaction Study, Jalopnik, Consumer Affairs, Travel + Leisure and Autoslash. These rankings are based on several different factors, such as customer experiences, availability, prices, industry standings, conditions of the fleet, mobile apps etc.
We picked car rental companies that have appeared in these indexes and assigned them a score based on their rankings in each report. For instance, there are a total of 8 companies in the ACSI Travel Study 2022-2023, so the #1 company will get a score of 8/8=1 and the #2 company will get a score of 7/8=0.88 and so on. The same process was repeated for all the other indexes as well and, based on these reports, we determined an average score for each company and ranked it accordingly. The rental car companies are ranked from worst to best and the respective overall average scores are from a total of 1.
16. Payless Car Rental
Average Overall Score: 0.01
Headquartered in Florida, Payless Car Rental company is owned by the Avis Budget Group, Inc. (NASDAQ:CAR). Although Payless has decent baseline prices, its over 120 nationwide locations are mostly based at the biggest airports.
However, their low rates come at a high cost. As noted by sources, the aging and substandard car fleet of the company often causes problems and customers have often complained about confusing contracts, hidden fees, long wait times and "rude" representatives. It’s also very difficult to register a complaint with the company based on reviews.
Even a class action lawsuit was filed against Payless back in 2016, due to the add-on charges it collects from its customers, making it one of the worst car rental companies in the United States.
15. Firefly Car Rental
Average Overall Score: 0.03
Firefly is a low-cost and low-rated rental car company owned by Hertz Global Holdings, Inc. (NASDAQ:HTZ). This budget brand was developed by Hertz Global Holdings, Inc. (NASDAQ:HTZ) after it sold off Advantage Rent a Car, following the acquisition of Dollar Thrifty Automotive Group.
Customers of the company have often complained about hidden insurance costs and daily fees, staff unavailability, long wait times and not receiving their promised refunds on time.
14. Europcar
Average Overall Score: 0.04
Although Europcar is technically a French company, it has thousands of locations worldwide, including many in the United States. With its over 9,000 employees worldwide, the company has been in business since 1949.
Europcar has often received complaints about customers having to pre-pay for fuel, additional insurance costs, unfair damage charges and other hidden costs.
13. E-Z Rent-A-Car
Average Overall Score: 0.05
Founded in 1994, E-Z Rent-A-Car company is headquartered in Orlando, Florida. E-Z is owned by Advantage and in 2022, both companies agreed to pay $4.6 million to settle allegations that they overcharged customers who damaged their vehicles. Customers of E-Z have often complained about extra insurance fees, staff unavailability and non-consensual spiked daily rates.
12. Fox Rent A Car
Average Overall Score: 0.07
As part of the Europcar Mobility Group, Fox operates 21 corporate locations across the U.S. and many other locations worldwide. The company has a workforce of over 1000 and boasts a diverse fleet of 20,000 vehicles, according to its website.
Although the company is known for its loyalty program, last-minute rentals and low prices, customers have often complained about hidden deposits for tolls, additional drivers and insurance. Its customer service has also often been reviewed as rude and unhelpful.
11. ACE Rent a Car
Average Overall Score: 0.08
In 1966, Robert Sorenson and Ken Osterand founded the car rental company in Indianapolis, to meet the local demand of the surrounding neighborhoods. They started off with 10 Volkswagens and now the company has over 300 locations worldwide. ACE Rent a Car is now owned by the Avis Budget Group, Inc. (NASDAQ:CAR).
Though the company has competitive prices in the budget car rental category, it has very limited locations in the U.S. and their rewards program is not popular among their customers either. Customers have also complained about long waiting times, unhelpful staff, hidden charges and poor fleet conditions.
10. Advantage Rent a Car
Average Overall Score: 0.08
Advantage is a smaller company and although they have slightly higher prices than their customers, they offer newer, better and a wider array of vehicles to their customers. The major problem with the company is that it has only 6 locations nationwide and those are also all airport locations.
The company has also often received negative reviews for its lack of a loyalty program, hidden charges and overcharging its customers for damages.
9. Sixt Rent a Car
Average Overall Score: 0.21
Founded in Germany in 1912, Sixt is the oldest rental car company in the world. With over 2,000 locations in more than 100 countries, Sixt entered the U.S. market in 2011. Though the company has over 100 locations in the country, they’re limited to 18 states only, but it is continuously expanding its footprint in the American market.
Sixt offers an efficient rewards program to its clients and the advantage here is that they can use their rewards card anywhere in the world because of the company’s dominating global presence. Sixt+ is also a very cost-effective and efficient long-term rental program offered by the company to its loyal clientele. The company is also known for its excellent customer service but clients have often complained about hidden insurance costs and other charges.
8. Thrifty Car Rental
Average Overall Score: 0.29
Thrifty is a Florida-based rental car company, owned by Hertz Global Holdings, Inc. (NASDAQ:HTZ). Thrifty is a great choice for a budget car rental company and offers some of the most competitive prices in the market. The company also offers decent location-specific deals and discounts and its rewards program, Blue Chip, is efficient and simple to use.
Though it has a limited number of locations, the customer service isn’t always great and the company also charges excessive fees to drivers between 20-25 years of age, clients have overall had good experience with Thrifty.
7. Dollar Rent a Car
Average Overall Score: 0.43
Founded by Henry Caruso in 1965, Dollar Rent a Car is also owned by Hertz Global Holdings, Inc. (NASDAQ:HTZ). The company has over 570 locations worldwide, including more than 250 in the U.S. and handles about 3% of the American market.
Dollar is a budget rental car company and offers some of the lowest rates in the industry. Although the company has received complaints about its customer service, Dollar is a good choice for a low-budget clientele and the company has also started easing its credit card requirements. Dollar also rents to 20-year olds in every state, which is a whole year younger than most other car rental companies.
6. Budget Rent a Car
Average Overall Score: 0.47
Headquartered in New Jersey, Budget Rent a Car is a subsidiary of the Avis Budget Group, Inc. (NASDAQ:CAR). With its 1,300 nationwide locations and below-average prices, Dollar is a fine choice for people looking for cheaper and convenient deals. The company also offers a substantial discount (35% off base price) if you pay when you make the reservation.
On the flipside, it is not among the best reviewed car rental companies in America. The company has received mixed reviews about its customer service, dirty fleet and lack of points or other ways to earn free rentals.
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Disclosure: None. 16 Rental Car Companies, Ranked from Worst to Best is originally published on Insider Monkey.