When you read about the Earthquake that shook Japan and the world, one does not immediately associate the devastation with the New york car rental market. Who would have thought that the Tsunami and destruction could have a major impact on the cost and availability of cars here in New York City, or that it would cause problems for rent a car companies hoping to supply their fleets with vehicles for the busy Spring and Summer season.

The aftershocks continue

The damage caused by the 9.0 magnitude earthquake in Japan disrupted much more than the daily lives of those living in the devastated area. Toyota, Nissan as well as other manufacturers of cars used by New York City rent a car companies including All Car Rent A Car, were forced to close car production facilities both in Japan and here in the United States due to a shortage of critical components used in the assembly of cars that are manufactured primarily in the affected regions of Japan. Moreover, thousands of cars which were produced and destined for export to the United States, New York City and elsewhere, were destroyed. Some of these destroyed cars were slated to enter the fleets of rent a car companies in New York City and beyond. There are cars which have already been produced, though cannot be shipped for use by consumers and/or rent a car companies as they must be first inspected for possible radiation contamination.

All major manufacturers are affected

Nissan Motor Company and Toyota have each announced they are closing factories several days a week and operating at 50% production on the remaining days they retain operation at their car assembly plants. General Motors and Ford, who do not assemble vehicles in Japan around the affected regions, have also been forced to close car assembly plants as well as reduce operating days and shifts at others due to a shortage of parts needed to build or assemble their cars. Most of these parts do not have names the average consumer would recognize nor are they made by companies that most people have heard of. The impact of all these car manufacturing slowdowns and shut downs can be seen in the the reduced number of New York City car rentals that companies like All Car are able to purchase.

Increased prices are shared by all involved

The scarcity of available rental cars affects the price of vehicles. After all, that is economics 101; supply and demand always have an effect on price. Just as the reduced availability of rental cars have caused the purchase price of New York City car rental to increase, so too have the rental rates increased for potential New York City car rental customers.

All Car Rent A Car fortunately has a number of vehicle suppliers and has placed orders for rental cars for its 14 New York City area locations well in advance. Rental cars have been arriving at All Car Rent A Car distribution centers at a rate of 15-25 per week. Many of these rental cars are slated to replace older New York City car rentals while others are being purchased to increase the variety and quantity of rental cars made available to our valued New York City rent a car customers. Ironically, while large 15 passenger vans are not manufactured in Japan, it is this vehicle type that All Car is experiencing the most difficulty finding. These vehicles require the installation of components that are manufactured in Japan, and thus production of these vehicles have greatly decreased over the past month. Even so, All Car Rent A Car is one of a few companies which carry the Ford 15 Passenger van with the Flex Fuel option. In order to avoid disappointment it is recommended that New York City car rental travelers booked their 15 passenger van rentals as far in advance of the rental need as possible.

Please contact the All Car location nearest you for more information on how we are managing the delays caused by the Japanese earthquake. As always, All Car will work tirelessly to provide you with quality vehicles at competitive prices.