Special Report: New and Used Rental Sales Outlook
The COVID-19 pandemic has caused massive disruptions to virtually every industry. Stay-at-home orders and the virtual cessation of personal and business travel has hit the rental car industry particularly hard.
Over the past few years, new vehicle sales into rental fleets have numbered around 2 million units per year, and our pre-virus expectations for sales of new vehicles into rental fleet sales in 2020 was a similar 1.9M units (excluding medium and heavy-duty vehicles).
For obvious reasons, the pandemic has radically altered our outlook. Given the current and expected near-term decline in consumer and business travel, rental companies will need to shrink fleet size to match the reduced level of demand. This will happen in two ways; the reduction of new vehicle purchases, and the right sizing of current portfolios by the remarketing of surplus units already in service.
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