Madrid, August 1, 2022.- The National Federation of Vehicles with and without Driver (FENEVAL) recommended in a statement that Rent a Car (RAC) users reserve their vehicle as soon as possible if they wish to obtain a rental car for this month August or Septemberespecially in Canary and Balearic Islandswhere it looks like tourist bookings are at the same level or even higher than in 2019.
In a context of scarcity of vehicles due to the global semiconductor crisisthe president of the national employers’ association of lessors, Jean-Louis Barahonaonce again emphasized to customers the need to anticipate and book as soon as possiblegiven the peak demand expected for this month of August, mainly from international tourists UK, Germany and France.
“Despite the Russian invasion of Ukraine or even the strike of certain airlines, which causes cancellations of certain reservations, we continue to experience a strong demand from international tourists which we hope will continue to increase throughout throughout August, even September,” Barahona said.
However, despite the good tourism forecast, the maximum fleet of rental cars will be 27.5% lower than pre-pandemic levels. For this reason, the president of the national employers’ union has been alerting users to this shortage for months: “As of July 31, we only have 550,000 vehicles (between passenger cars and commercial vehicles), even if We estimate that we can reach a figure close to 6,000,000 vehicles this summer season, while in 2019 the fleet in circulation was around 820,000 cars”.
To compensate for this lack of fleet, the car rental sector is carrying out several strategies to meet demand: Companies are renegotiating takeover contracts with manufacturers to have them for up to 10 months or more, in addition to delaying defleeting (the sale of the fleet). They also increase conversations with brands to have visibility on delivery times and to be able to plan purchases. In addition to buying on time through alternative channels.
In this sense, the president of the employers’ association made a point of emphasizing “the important role that the RAC has within the tourist experience in Spainwhat he did more than 20 million services in 2019. But also within the automotive industry, vehicle rental being a strategic sector for brands, representing 20% of manufacturers’ saleswhom we ask once again to continue to maintain this percentage in these crucial times for the sector”.
In this context of tourist recovery in Spain, FENEVAL has once again asserted its historical claim on the equalization of VAT/IGIC to the rest of the tourism sectorwhich is taxed with a reduced VAT of 10% (or 3% of the IGIC in the Canary Islands), while Rent a Car, on the other hand, is taxed at a rate of 21%.
“It makes no sense that tenants continue to pay taxes at 21% when 85% of their activity is directly linked to tourism contracts. This tax should be equal to other sectors such as passenger transport, l accommodation and catering”, affirmed Barahona, who added that, “for this reason, the reduced VAT is not requested for industrial vehicles in the transport of goods”.
FENEVAL, National Federation of Vehicle Rental Companies. It brings together more than 800 companies and represents nearly 95% of the rental sector in terms of turnover, with a fleet of more than 800,000 vehicles and more than 20 million services per year. Here, from large multinationals to very small ones, coexist since its creation in 1977. During these more than 40 years, we have become the voice of mobility, being present at the main negotiation tables.