Posted on March 10, 2008 by Fiona Hilliard

Avis is predicting that its rental rates are to rise by as much as 12 percent in South Africa this year, due to spiralling overheads associated with higher interest rates and new car costs. 

Avis’ CEO, Wayne Duvenage is reporting that interest rates have skyrocketed by almost 70 percent in two years.  Despite these alarming forecasts, Duvenage maintains that car hire South Africa is still much cheaper than the price of booking a hotel room in South Africa.
Avis is not alone in its higher expenditure experiences. Budget has also announced an increase in running costs.  Budget says the cost of sustaining its car hire fleet now costs approximately 25 percent to 40 percent more than it did in early 2007.