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Rent-A-Hybrid. Will It Work?

April 9, 2008

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As gas prices in the U.S. continue to spiral up towards 4 dollars per gallon, and consumers become more and more environmentally conscious, at least one car rental agency is preparing to take advantage during the summer travel season.

enterprise cars
Image from bookykicka on Flickr

Enterprise Rent-a-Car, famous for dangerously careening down the road in cars wrapped in brown shipping paper, has opened four “green” branches in Atlanta this week, with over 60% of the vehicles at these locations hybrids or other fuel-efficient models.

This is marking an interesting test for the American consumer– repeatedly, when polled, they will say that they desire these sorts of options, but once they’ve been made available, there’s no track record of success in the past. Will the 5-to-15 dollar surcharge for the special vehicles be too much for consumers to stomach, especially in short trips, when the cost outweighs what they might save in gas?

As obvious and depressing, as that may seem, the response here is critical because Enterprise has slowly built the hybrid component of their fleet up to 4,000 of the total 1.1 Million. With a grand success in the capital city of the south, the program would be free to expand. Without it, hybrids may be doomed as rentals until they become the mainstream car for most of the country’s drivers.

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Comments

One Response to “Rent-A-Hybrid. Will It Work?”

  1. Avatarbitguru
    1

    I’m reluctant to pay surcharges when I rent vehicles, but $5 to $15 could be recouped by saving 2 to 5 gallons of gasoline, or perhaps 40 to 100 miles per day.

    (I actually think this is more likely for short rentals than long rentals. At least for me, because when I rent for a day or two it’s because I have some driving to do, but when I rent for a week or more I usually have only a few short trips to make per day.)

    I think Enterprise will do well if they can extract surcharges from customers for hybrids, or for Prius at least, because I suspect that the maintenance costs are lower and the resale value is higher than the rest of their fleet. They might almost be paying for themselves without the surcharges.

    Reply to this comment.

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