High Gas Prices Turn Car Rentals Upside Down

I read in the Chicago Tribune that, due to high gas prices, rental car companies are seeing their business model flipped over.

Traditionally, car rental companies are organized such that their cheapest cars are the small subcompacts. Larger sedans and SUVs cost more to rent, or require an upgrade.

Now, with $4 gas, the rental companies are having a shortage of small cars, while the larger cars are less popular.

One business traveler mentioned in the article was renting a car for a 400 mile business trip. He said that, after seeing that he was assigned an SUV, went back in and demanded a smaller car.

The rental agent then ironically claimed that the SUV was an upgrade!

The businessman then said "I sure don't want an upgrade if it means driving an SUV."