Asheville, North Carolina is home to some of the largest and best-known car rental companies in the United States.
But there are some places in the South that are getting more and more expensive each year.
That’s because of a change in state law that requires rental companies to report their rental income.
The law went into effect in March and requires car rental businesses to file annual financial statements with the state, as well as to submit to the state a report on how many cars are rented each year in the state.
The new law also allows the state to impose a 15% surcharge on car rentals.
The changes come as more and other states have considered similar laws that require rental companies and their employees to report income from car rentals, said Mark Fierer, an economist at the University of California-Berkeley.
The effect of the law on car rental providers has yet to be seen, Fierier said.
The law applies to any rental company that is in business in North Carolina, he said.
A recent study by the American Association of State Car Rental Administrators found that car rental revenue in the country fell by 3.9% in 2017, a rate that is more than double the national average.
The drop was largely driven by lower car rental prices, with some states having a median price of $6,700 and the average rent price of about $5,500.
Rental companies say the increase in prices is necessary to cover a decrease in car rental demand, because car rentals have become less affordable.
“I think there’s a general perception that we’ve seen an influx of new cars that don’t pay off,” said Tom Condon, a Raleigh, North Carolinian who owns a car rental business.
“But what people don’t realize is that the industry has been struggling for a while and people have been looking for ways to reduce their expenses.”
Car rental companies have been able to cut their expenses through a number of measures, including buying fewer vehicles and reducing vehicle depreciation, Fiesrer said.
Car rental companies are also making more investments in new technology and more efficient fleet management systems, which reduces the number of cars needed.
But the most cost-effective strategy is to keep people in their cars longer and more frequently, he added.
For a rental company, a new car can be a cost-saving measure, Fierrer said, since car rental expenses have dropped.
Car rentals are now typically used for shorter trips or for occasional trips that don,t require the driver to drive every day.
Fierrer, who is also a member of the board of directors for the American Automobile Dealers Association, said that car rentals are also being used for transportation to other parts of the country, where there are more options.
The car rental industry has made strides in making it more efficient and easier to operate, he explained.
But, it is still a very challenging business.
Fierer said the industry is growing and the number and quality of rental car companies has increased.
The demand for rentals has increased, he noted, and more and longer-term rentals are available.
But it is important to remember that car owners and renters are still a small part of the rental car industry, Fiedrer said..
Car rental revenue dropped by 3% in 2018, and Fierers said it’s unlikely that the overall decline will last, given that the number is expected to increase as more people move into rental cars.
Fierser said rental companies also have a number other options, such as getting rid of cars altogether or leasing them out.
“There are ways around these rules, but you have to be realistic,” he said, adding that he would like to see more states require car rental operators to file financial statements, which he said would be a much better way to evaluate rental income than just looking at a monthly income statement.