Auto Rental & Leasing NAICS 532111, 532112

May 24, 2026 - Length of Rental for Collision Repairs Drops

• The average length of car rental for collision repairs declined to 16.3 days in Q1 2026, down 0.4 days year over year, according to Enterprise Mobility. The decrease follows a 0.9-day drop in Q1 2025, reflecting continued normalization as repair backlogs ease. Average repair backlogs fell to about 1.8 weeks from 2.6 weeks a year earlier. Fewer than 10% of shops reported delays of four weeks or more, and 18% said they could schedule repairs immediately. Rental lengths remain above pre-pandemic levels of 13.2 days in Q1 2020 and 12.8 days in Q1 2019. Regional differences persisted, with Alaska reporting the longest rentals at 20.8 days, and North Dakota the shortest at 12.0 days. Enterprise Mobility data suggests the industry is nearing a new normal, with limited additional declines expected unless repair volume declines.
• The American Customer Satisfaction Index (ACSI) Travel Study 2026 shows rising customer satisfaction across the travel sector as conditions normalize, with car rentals improving 1% to a score of 76, matching gains in airlines, rideshare, and online travel agencies. Within auto rentals, results are mixed, highlighting uneven performance across brands. Alamo and Avis lead at 79, each up 7%, while National also improves, and Hertz edges up to 77. In contrast, Budget drops 5% to 73, and Dollar falls 3% to 71, with both facing higher complaint rates and weaker service perceptions. These disparities underscore ongoing challenges in customer service, digital experience, and complaint handling, underscoring the need for operational consistency and technology adoption to strengthen competitiveness in the auto rental industry.

• According to the Associated Press, rising travel costs driven by higher fuel prices, inflation, and global uncertainty are likely to weigh on travel spending as consumers rethink vacation plans. Overall travel spending is expected to grow just 1% in 2026, according to the US Travel Association. Many Americans are shifting to shorter, closer-to-home trips or cutting travel altogether, reducing the need for extended car rentals. Higher gasoline prices and rising costs for airfare, lodging, and dining are forcing travelers to seek lower-cost alternatives, including buses, trains, or shorter driving distances. Analysts describe a "K-shaped" trend, with higher-income households maintaining travel habits while lower-income consumers scale back. A reduction in US travel spending could soften rental car demand in price-sensitive segments.
• Electric vehicle discounts are creating new dynamics for the auto leasing industry, as oversupply and weaker demand following the expiration of federal tax credits have pushed automakers and dealers to offer aggressive incentives, according to The Wall Street Journal. Buyers can now secure steeply discounted EV purchases and lease deals, with some incentives reaching $10,000 or more, and lease support as high as $18,300 on certain models. Rising gas prices are also renewing interest in EVs and hybrids, increasing search activity and potential demand. For the leasing market, the surge in incentives is lowering monthly payments and making EV leases more competitive with gas-powered vehicles, helping absorb excess inventory. However, continued oversupply suggests pricing pressure may persist, requiring leasing companies to balance residual values and profitability as manufacturers rely on incentives to stimulate demand.