LIHU’E — The price of rental cars on the island has fallen from last summer’s peak, but remains above pre-pandemic levels as rental car companies face a shortage of vehicles, supply chain issues and labor costs.
At the height of the pandemic, the lack of tourists led many large companies to ship their cars to the mainland to avoid daily parking fees, leading to a shortage of available vehicles when the island reopened.
Adele and Clayton Robbertze, who bought affordable, no-frills rental company Rent-a-Wreck in 2019 shortly before the pandemic began, have witnessed the fluctuation in prices, which they say have roughly doubled from at pre-pandemic levels.
“Initially the high prices were the result of the shortage,” said Adele Robbertze. “But here’s the thing. Because all the costs went up for the staff, that kept the prices higher. Prices stabilized at the new normal.
Nearly a year ago, The Garden Island reported that car rental companies were offering vehicles between $150 and $300 per day. A review of travel website Expedia now shows most rentals in the $100-$150 range.
Rent-a-Wreck did not ship any inventory off-island during the pandemic, but struggled to replace lost inventory due to general wear and tear due to vehicle shortages.
“You lose cars, but you can’t buy more,” Adele Robbertze said. “In an automotive business, you need that rotation, and we didn’t have that rotation.”
A worldwide shortage of computer chips has made it more expensive to manufacture new cars, driving up vehicle prices. According to consumer reports, automakers built 1.7 million fewer vehicles in 2021 than in 2019. And Kelley Blue Book reports that the average price of a new vehicle rose $5,353 in May this year. year compared to April 2021.
“There is always a shortage of cars,” said Clayton Robbertze. “That’s why if you bought a car two years ago, you can ask for more now.”
Sue Kanoho, executive director of the Kaua’i Visitors Bureau, estimated prices are down about 50% from last summer’s peak, but are still about 30% above rates. before the pandemic.
“We still manage a tight inventory from traditional car rental agencies,” Kanoho said.
Recently, this lack of inventory has been partially filled by peer-to-peer car rental apps like TURO, which has been a major factor in driving prices down from last summer’s highs.
Apps like this make it easy for private vehicle owners to rent their own cars and can be quite lucrative, with TURO reporting that owners can earn over $10,000 per year per vehicle. Prices for TURO rentals tend to start around $100/day, according to a review of their app.
TUROs have also caused problems, with some owners operating on public or private land without permission and filling airport parking lots. In April, the State Department of Transportation began issuing tickets for TURO vehicles that operated at airports.
“We have asked people to be mindful and not to conduct commercial activities on private property…without their prior written permission,” Kanoho said. “The Lihu’e Airport parking lot does not allow commercial activities without a paid permit from the (Ministry of Transportation).”
Rent-a-Wreck owners do not see rental car prices returning to pre-pandemic levels.
“The dynamic has changed,” said Clayton Robbertze. “And I don’t believe vehicle prices will necessarily go down.”
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Guthrie Scrimgeour, journalist, can be reached at 647-0329 or gscrimgeour@thegardenisland.com.
