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Tourism companies are among those that hitherto have been the most affected by the crown crisis. There have been sudden stops here for many.
But while airlines around the world now receive crisis packages, car rental companies need to manage themselves. And that is not easy.
Here, too, there has been a dramatic decrease in turnover. We hardly rent a car anymore, but much of the costs are still running.
One of the big problems now is car rental giant Hertz. They even disappeared before the crown epidemic went around the world. Now they are fighting to avoid bankruptcy.
Deadline until May 22
Hertz has 12,400 offices worldwide and is housed in a strong fleet of automobiles.
Back in March, they started laying off employees to cut costs. But that was not enough. On April 29, Hertz stated that they could no longer pay their debt.
The company now has a May 22 deadline to find a solution. In practice, that is, they have to raise fresh money if they do not run the risk of bankruptcy.
The car rental trap can cost you a lot
The crisis reaches double
In the first instance, we will talk about some NOK 4 billion that must be returned.
Hertz has more than 750,000 cars in its fleet. These are from a few weeks to 18 months old.
Here, of course, there are also considerable values, but the crown crisis hits the company twice, the cars are worth less now than before the crisis.
One thing to remember when renting a car
Very good discounts
In the United States, it is estimated that a “crisis sale” of Hertz cars could create a major imbalance in the used car market. Hundreds of thousands of newer used cars on the market at the same time will drive prices down even further. Of course it is
It is not good for your company or your creditors.
Like many other car rental companies, Hertz is now running promotions at very good discounts. Here we have also seen offers for longer rental periods, at prices that are far from what we were used to before. The alternative is
Of course the cars just stop and no money comes into the box.
Many end up with unnecessary insurance
Video: Here we test the latest car brand in Norway
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