With fleet sizes ranging from six to seven figures, it’s no surprise that car rental companies are the largest buyers of cars and trucks in the United States.
While exact numbers for the industry are elusive, it’s not hard to get a rough idea. According to annual reports from Hertz, Avis and Dollar Thrifty, car rental companies typically keep their cars for 4 to 22 months, with an average shelf life of 13 months. In other words, each year they hand over approximately 92% of their respective vehicles.
Thus, on average, these four companies annually buy almost 2 million cars and trucks. A significant portion is purchased from American car companies such as Ford (NYSE: F), General Motors (NYSE: GM) and Chrysler, making car rental companies one of their most important individual customers.