Hertz blames economic factors for rate hike

SYDNEY – Hertz has increased vehicle rental rates throughout Australia by an average $5.00 per day or $30 per week, effective immediately.

The car rental company said the rate increase has been made necessary by higher vehicle depreciation and maintenance costs, a significant fall in used vehicle resale values and a decline in rental revenue.

“This economic climate is unprecedented, and is impacting both our rental and car sales businesses,” said Wayne Burgoyne, director sales and marketing, Hertz Australia.

“We have been cutting costs throughout our global network, reducing expenses by more than US$500 million over the past two years.

“But this is no longer enough. With costs continuing to rise and demand falling, our rental pricing in this market could not be sustained.”