“People don’t usually call and ask about a hybrid,” he said. “It’s more the electric vehicles.” Customers tend to simply accept the offer of a hybrid vehicle, even when it costs $10 more per day, since it saves them more on gas, he said.
Gasoline prices are increasing interest in renting electric vehicles
As higher fuel prices put a strain on travel budgets this summer, some Canadians are turning to electric vehicles to avoid gas stations. However, with electric vehicle inventory in brief supply, many is not going to find what they’re searching for on the rental lot.
This recent wave of interest in electric vehicles follows an increase in gasoline prices this 12 months. That’s in contrast to what Liborio has observed lately: a continued preference for gasoline cars as drivers were uncertain in regards to the range of electrical vehicles, anxious about finding the closest charging station and spending hours charging them as they drove.
Some corporations sold their electric vehicles or downsized their fleets after they proved unviable because of weak consumer adoption and expensive maintenance, said Daniel Ross, director of strategic market insights at Canadian Black Book. Car rental company Hertz has reversed its decision to impress a part of its global fleet after first attempting so as to add electric vehicles in 2021 and liquidating a 3rd of its global electric vehicle offering in 2024. It’s not clear what number of electric vehicles Hertz has in its Canadian fleet.
Rental corporations are unlikely to expand their electric vehicle fleets
Ross said Canada’s electric vehicle population stays small and limited to cities with adequate infrastructure. Complicating matters are the volatility within the automotive market, which is finally clearing up after a pandemic-era shortage caused bottlenecks in the availability chain. Most rental corporations desired to purchase any automotive they might get their hands on, and nearly all of the offerings were gasoline-powered.
Given recent demand, rental corporations are unlikely to expand their electric vehicle offerings because it is just not meaningful enough to be a tipping point for them, Ross said. But dealer interest in electric vehicles has increased. As the war in Iran drags on and the Strait of Hormuz stays effectively closed, blocking a fifth of the world’s oil supply and keeping global oil prices high, electric vehicles are once more finding themselves desirable to an increasing number of Canadians.
Canada’s Best Gas Credit Cards
The renewed interest also comes because the federal government reintroduced its electric automotive rebates in February, helping to offset a few of the costs. Electric vehicle sales rose greater than 50% in several provinces shortly after rebate programs took effect, in response to a February report from DesRosiers Automotive Consultants Inc.
According to a May 26 report from Transport Canada, Canadians have claimed greater than $122 million in federal subsidies for brand spanking new electric vehicles within the three months because the reintroduction.
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On peer-to-peer automotive rental marketplace Turo, electric vehicle bookings were up 80% 12 months over 12 months through mid-May, said Bassem El-Rahimy, vp of Turo Canada. This is actually “seen as an indicator of people trying to avoid or offset some of these incredibly high gas prices that we’re seeing today,” El-Rahimy said. There are around 2,000 electric and hybrid vehicles listed for rent on the platform.
According to El-Rahimy, searches for hybrid vehicles on Turo increased sharply year-over-year – up 180% between April 29 and May 29 in comparison with the identical time last 12 months. He said this likely indicates a move toward fuel-efficient options generally somewhat than a preference for electric vehicles specifically.
Summer demand is reducing the availability of electrical vehicle rentals
El-Rahimy said electric vehicles were still available on the rental market, but supply had grow to be tight ahead of the long weekends. “They’re definitely starting to book for the summer,” he said.
However, Enterprise Rent-A-Car has not seen a big increase in demand for hybrid and electric vehicles, said company spokeswoman Danielle Stuart. She said the corporate has nearly 160,000 hybrid and electric vehicles in its global fleet, with a limited mix available in some Canadian markets where there’s demand and infrastructure for them. The company didn’t say what number of it has in Canada.
Calgary resident Jeff Bannard often rents electric vehicles when he travels for work, but only once they are the most affordable available vehicles. He hasn’t found any offers for it recently. “If I were to choose a vehicle, by and large an electric vehicle would be expensive per day,” he said. “Maybe 20 to 30% more per day than a traditional small gas-powered vehicle.”
But there are savings in gas money, he said. Charging an electrical vehicle at a Supercharger station costs about 56 to 62 cents per kilowatt hour. “If you compare that to going to the gas station and filling up, it’s a little cheaper.”
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