Rental cars are slapped with Germany's 16% Value Added Tax (VAT), registration fee, and airport fees (but rates do include the required third-party liability insurance). These additional fees may equal up to 25% of the daily rental.
In the early sixties, Avis launched the slogan We try harder, positioning ourselves as the world's number two car rental company. Or rather the car rental company that must constantly prove itself to be as good as the No. 1, again and again.
Holidaymakers face soaring car hire costs as shortages drive up prices. The cost of renting a car in European holiday destinations has almost doubled in the past three years, and experts predict prices will remain high as global shortages mean car hire firms are paying more for new vehicles.
Car rentals cost more than they did a few years ago due to many different factors, but primarily because of supply chain issues related to the COVID-19 pandemic. As demand for rental cars fell, rental car companies sold segments of their fleets to stay in business during the lean times.