With More Americans Hitting the Road for Travel, Rental-Car Companies Revive

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Rental-car companies, crushed by a collapse in bookings at the start of the pandemic, are getting a lift from rising used-auto prices and people looking to travel by car

and even hit record levels in August as dealers grew tight on inventory. That market stabilization was crucial for rental-car firms because they regularly turn over their fleets and are sensitive to changes in resale values.

Customers, wary of air travel, rushed to rent vehicles for road trips and business needs and as an alternative to using ride-hailing apps operated by Uber Technologies Inc. and Lyft Inc., executives and analysts say. These trends helped Avis Budget Group Inc. swing to a net profit of $45 million in the third quarter, reversing losses in the first half of the year, the company said Friday. Privately held Enterprise Holdings Inc. also said it has benefited from an uptick in leisure travel, with bookings improving over the summer and customers renting vehicles for longer periods.

 

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Rising used-car prices is a tell-tale sign of inflation. EndTheFed

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