Avis has predicted a rise in rental costs over 2008 and 2009.
Reasons for the rise have been given as a slowing down in the economy, a stronger Euro, falling used car costs and rising car costs from manufacturers.
New VED bands in the recent Budget will also bring in price rises that will inevitably be passed on to the customer.
“Car costs have risen considerably over the last 12 months and look set to rise further in 2008,” according to Paul Hainsworth, fleet director at Avis.
“Circumstances beyond our control will continue to put severe pressure on the entire rental industry,” said Hainsworth.
