New York State car rental prices are lowest in six years
New York, New York (Bloomberg) — New York state’s car rental industry is in a deep freeze, with prices in some areas falling as low as $1 per minute, according to a survey by a company that tracks car rentals.
The Car Rental Association of New York said it expects the industry to report its quarterly rental price at $1.19 per minute in the second quarter, down from the $1-per-minute rate it reported in the first quarter.
The survey of car rental companies by the association found that the average monthly rental rate for an owner-occupied vehicle was $9,928 last quarter, compared with $13,898 in the fourth quarter.
New York has seen some of the worst rental prices in the country, with rents dropping nearly 60% between 2007 and 2011, according the association.
The association said that was partly because of a tax increase in 2011.
The industry is recovering, but some car rental firms have been slow to move from leases and leases with multiple drivers.
New York City’s rental market has been slow-moving and expensive, said Matt Staggs, the association’s president and chief executive officer.
“It’s been a really tough quarter,” Stagg said in an interview.
New Jersey’s rental prices have also been low.
In the fourth-quarter, New Jersey’s median rental rate was $7,919, compared to $12,857 in the third quarter, according a report by the state’s Department of Consumer Protection.
The association said the state is “comfortable” in the rental market, with a vacancy rate of less than 1%.
New York City rents a large number of cars, and the association has warned that if demand for rental vehicles remains low, car rental rates could decline.
New Yorkers are not happy with the state of their cars, said Joseph Kiely, a car rental agent in Manhattan.
But he said the industry has been able to make repairs quickly, and he said that if people don’t feel safe driving, he doesn’t think that’s a problem.
“We’re not going to have any issues,” he said.