Posted on April 08, 2008 by Fiona Hilliard

Car rental company Avis has issued a warning to car rental companies and fleet operators that car rental costs are likely to rise during 2008 and into 2009.

The company attributes the increase in overheads to rising costs from manufacturers, the strong Euro, the economic slowdown and falling used car prices. 

Avis fleet director, Paul Hainsworth says:

“Car costs to rental companies have risen considerably over the past 12 months and look set to rise further in 2008.”

The situation has been worsened by the recent UK budget which introduced new Vehicle Excise Duty bands for new car which rental companies will have to pass onto customers during 2008 and 2009.