As the financial crisis takes its toll on the travel and tourism industry and thus on demand for rental cars, the Costa del Sol car hire firms are facing additional challenges.

Costa del Sol car rental companies in despairWith banks not giving sufficient credit, many car rental firms are forced to reduce their fleets.

“To maintain a fleet of 100 cars a company is left with around 1.3 million of debt,” explained Antonio Quintana, manager of Central Car in Malaga. “But with the banks refusing to issue credit to buy fleets, there are fewer cars to offer.”

“The lack of funding has wreaked havoc,” Ana Maria Garcia, president of the Association of Vehicle Rental Services (AESVA) told the region’s local newspaper, Diario del Sur.

Malaga has over 200 car rental firms with an average stock of 40,000 cars.

Image by reservasdecoches under Creative Commons.