You’ve seen the long lines. You’ve probably felt that slight pang of anxiety when the "economy" car you booked turns out to be a massive SUV you can barely park. It’s a weird time to be a traveler. Honestly, the car rental industry news coming out of early 2026 feels a bit like a fever dream where tech is taking over, but the actual experience is still catching up.
Basically, the big players—we're talking Hertz, Avis, and Sixt—are in the middle of a massive identity crisis. They want to be "mobility tech" companies. But right now, they're mostly just trying to figure out how to stop losing money on electric vehicles while making sure you don't wait two hours in a Denver airport shuttle line.
The EV Hangover is Real
Remember when everyone was obsessed with Teslas? Rental companies were, too. Hertz famously bought 100,000 of them back in 2021. Fast forward to now, and the mood has shifted. Big time.
The industry is currently nursing a multi-billion dollar headache. Why? Depreciation. It turns out that when a rental company tries to sell thousands of used EVs at the same time, the market basically tanks. In late 2025, used EV prices plummeted, with some models like the Tesla Model Y losing nearly half their value in just two years. For a company like Hertz, which reported a staggering $2.9 billion loss recently tied to these fleet issues, that’s not just a "hiccup"—it’s a crisis.
You're going to see a lot more "hybrid" options this year. It's the safe middle ground. People want the gas mileage without the "where the heck do I charge this?" panic in an unfamiliar city.
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AI is Watching You (and Your Bumper)
There is some genuinely cool—and slightly terrifying—tech hitting the lots right now. Have you noticed those drive-through scanners at some return centers?
Companies like Inspektlabs and others are rolling out AI-powered damage detection. You drive through a light-filled tunnel, cameras snap 360-degree high-res photos, and an algorithm spots a scratch before you’ve even unbuckled your seatbelt.
It’s efficient. It’s fast. But it's also kinda ruthless.
There’s been a bit of a media nightmare lately regarding "automated billing" for tiny dings that a human might have ignored. If you’re renting in 2026, take your own photos. Seriously. Don't trust the robot to be "chill" about that pebble chip on the hood.
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The Death of the Rental Counter?
Hertz is currently leaning hard into what they call "Agentic AI." They’re working with Microsoft to create AI assistants that can actually do things—not just answer questions.
Imagine sending a photo of a confusing dashboard warning light to an AI agent that instantly tells you it's just a tire pressure glitch and offers to swap your car at the next location. That’s the goal.
We’re also seeing a massive push toward contactless everything. Over 75% of reservations are now happening on mobile apps. The goal for 2026 is "Zero Friction." You land, you walk to a stall, you unlock the car with your phone, and you leave. No paperwork. No "would you like the extra insurance?" upselling from a tired human behind a plexiglass barrier.
Why Prices Are Still Weird
If you feel like you’re paying more for a basic sedan, you aren't imagining it. Even though some supply chain issues have eased, "dynamic pricing" is more aggressive than ever.
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Rental companies are using machine learning to change rates in real-time based on everything from local weather to concert schedules. If a flight gets canceled at O'Hare, the app knows, and the price of the remaining three Altimas on the lot just jumped $40.
There's also a new threat to the big guys: "Rogue" discounters. You might see $10-a-day rates online from companies you've never heard of. A word of caution: these are often "fee traps." By the time you add the mandatory insurance and "facility recovery fees," you’re paying more than you would have at Avis.
Actionable Tips for Your Next Trip
- Check the "Residual Value" of your choices: If you're renting for a long period (like a monthly subscription), look at hybrids. They are the current "sweet spot" for reliability and price.
- The 360-Degree Rule: Before you leave the lot, film a 15-second walkaround of the car. AI scanners are becoming the industry standard for returns, and they don't miss a thing. You need your own digital paper trail.
- Book "Off-Airport" if you can: Most of the 2.7% year-over-year price increases are tied to airport concession fees. An Uber to a local neighborhood rental branch can sometimes save you $200 on a week-long booking.
- Loyalty pays more than ever: Because companies are desperate to keep customers from switching to Turo or ride-sharing, "Gold" or "President’s Circle" status actually gets you the "skip the line" perks that actually work in 2026.
The industry is stabilizing, but it’s a bumpy ride. We're moving toward a world where the car is basically a smartphone on wheels, and the rental process is as automated as buying a candy bar from a vending machine. Just make sure the vending machine doesn't charge you for a scratch that was already there.