Auto Rental & Leasing NAICS 532111, 532112

Jan 22, 2026 - Industry Optimistic After Spate of Challenges in 2025

• The car rental industry spent 2025 adjusting to tariffs, weaker tourism, tighter financing, and rapid technological change, prompting both major companies and independents to rethink long-standing operating models, according to Auto Rental News. Tariff uncertainty led operators to rush vehicle purchases and hold fleets longer. At the same time, political tensions contributed to year-round declines in tourism, reducing daily rates, rental lengths, and overall usage. Smaller independents faced slow growth and stricter lending conditions, making efficiency and careful fleet planning essential. At the same time, operators accelerated digital adoption by using AI for fleet diagnostics, pricing analytics, fraud prevention, and automated check-ins. These tools helped larger independents cut fixed costs and compete more effectively. Despite a challenging year, operators are optimistic about 2026, hoping for stronger demand, better margins, improved access to financing, and wider availability of AI and digital platforms.
• A decline in foreign tourism to the US could lead to weaker demand for rental cars. Fewer foreign visitors are traveling to the US amid higher fees, more stringent visa requirements, travel restrictions, and harsh rhetoric from the Trump administration, according to The New York Times. According to some industry estimates, there were 4.5 million fewer international visits to the US in 2025 compared to the previous year. According to Tourism Economics, visits are down from nearly every part of the world, led by Canada, which has seen a 26% drop through November. Tourism from Germany, France, and South Korea is also down sharply. About 11 million fewer hotel rooms were booked in the US in 2025 compared to 2024, according to a hospitality market analyst with property research firm CoStar. While domestic tourism has surpassed pre-pandemic levels and somewhat cushioned the blow, it has not been enough to offset the decline in spending by foreign travelers.

• US automotive fleet sales – which includes rental, commercial, and government fleets – increased by 4.8% in 2025 compared to 2024, according to marketing and data firm Bobit. The gain was due to a 16.4% rise in rental fleet sales, as rental cars accounted for 54% of fleet sales last year. Industry insiders note that it's not unusual for rental vehicles to account for the bulk of fleet sales, but rental fleet purchases accelerated in the second half of the year, probably due to the advantageous policy changes in the One Big Beautiful Bill Act, including making 100% bonus depreciation permanent. However, combined fleet sales in 2025 were still 20% below the pre-pandemic level seen in 2019. Rental car fleet sales increased 17.1% in December 2025 compared to the same month in 2024.
• Rental car firm Hertz has started selling some of its used vehicles through Amazon’s automotive marketplace, according to The Wall Street Journal. The move is part of the firm’s effort to sell more excess cars directly to consumers to boost profits. Hertz sells most of its cars through auctions and to dealers; consumer sales account for about a third of total vehicle sales. Currently, car shoppers can browse Hertz’s offerings on Amazon, make their purchase, then pick up their cars at locations in Dallas, Houston, Los Angeles, or Seattle. The company aims to add another 45 US pickup locations. In addition to Amazon, Hertz is also ramping up retail sales through its website and other digital outlets, including Carvana and Autotrader.com.