Payless car rentals are making headlines around the world after a study revealed that they’re actually costing customers more.
The report from the research firm App Annie analysed the prices paid by Australian car rental users to car wash providers for a range of car wash and car rental services in Australia.
“We were able to examine the drivers of the higher price-to-rental ratio,” App Annie analyst Andrew Denton said.
“These were people who had no other option but to pay more for the car wash.”
“We found that a large proportion of people were paying more in the cost of car-washing, and a substantial number of those drivers were women.”
The study looked at a range on car-washing services in Victoria, New South Wales, South Australia, Queensland, Western Australia, Western Territory, and Northern Territory.
“A large proportion” of car rental drivers were female, the report found.
“Women accounted for approximately half of all car-wash users, and nearly three quarters of car renters,” it found.
Car washing is not just for women, the research found.
It found that the women’s cost of use was also higher than men.
“The most common reason for not paying was a lack of space,” the report read.
“This was especially true of men and those with small families.”
Another common reason was the fact that the services were not conveniently located, or because they were more expensive to get.
“App Annie also found that more than half of car renter households had more than one car, and almost one in four had more children.
It was not clear how many car renters were paying extra to the carwash services, and how much this cost them.
App Annie’s research was based on data from more than 6,500 Australian car renters.
The average cost of a car rental in Victoria was $1,095.18, compared with $1.16 for car renters in South Australia.
Car rental rates were highest in the ACT, with an average of $2,719.21, and lowest in Western Australia at $1 (around $800 less than in Victoria).
The study also found women were paying a higher price for car-related services.
Women’s cost-of-use was also significantly higher than that of men.
Women spent an average $1 less per day per household on car rental than men, and $1 more per day than their male counterparts.”
Car rental users tend to be younger and lower income, and more likely to be single and unemployed,” the research said.
App’s analysis of data from the Australian Bureau of Statistics showed that the cost to rent a new car fell by about half between 2006 and 2017, from $2.14 per day to $1 per day.”
Car rental costs have been increasing at the same rate as other goods and services over the last two decades,” the study read.
App’s analysis of data from the Australian Bureau of Statistics showed that the cost to rent a new car fell by about half between 2006 and 2017, from $2.14 per day to $1 per day.