New York City is the epicenter of the rental car sales disaster, with the average car rental company having more than $500 million in debt, according to a recent study from NerdWallet.
The report, which found that New York is the top-debt state for car rental companies, says that New Yorkers are spending an average of $1,500 a month on their car rentals, with many having to borrow more than twice as much as the median household income to afford their rental car.
“We’re not really sure how much of the $1.4 trillion in debt that is owed by car rental firms is due to a lack of interest or an under-utilization of space, as a result of a lack.
The more we learn, the more we know it’s more than that,” NerdWallet’s founder, Jeremy Gaffney, told Business Insider in a phone interview.
NerdWallet says that a large portion of this debt is due in part to the fact that consumers aren’t being adequately informed about the rental market.
“The average consumer who’s renting a car in New York knows that the car is a rental, not a purchase, and they don’t want to put money down on a rental car,” Gaffny said.
In the last month, there have been more than 1,500 car rental vehicle fires across New York, according a report by the New York Post.
The city is currently battling a wave of fires, with more than 60 cars reported lost or stolen in the last few weeks.
In a report from the Center for Investigative Reporting, the Post reported that New Yorker’s have spent an average $1 million on rental cars in recent years, despite a large share of that money going to gas and insurance premiums.
In September, New York Mayor Bill de Blasio announced that the city would be shutting down its only car rental agency, New Year’s Resolutions.
The company was shuttered due to debt.
In addition to New York and California, New Jersey is the third-largest state for rental car companies, and Florida is the fourth-largest.
Nerdwallet found that the state with the highest rental car debt is Texas, with $936 million in outstanding debt.
New York State has a lot to worry about with rental car car debt, with a projected total of $6 trillion in unpaid debt.
According to NerdWallet, this equates to a debt burden of more than half of all American families.
“It’s not just about a lack in knowledge, it’s also about people not paying their bills,” Gabor said.
“If you want to rent a car, you have to be prepared to take out a mortgage on it.
You can’t just rent a house.”
NerdWallet found that many New Yorkers who own cars have been paying their car leases, insurance, and gas in full.
NerdCarInsurance.com, a company that allows renters to pay their car insurance bills on their credit cards, says about 30% of renters have auto insurance.
NerdcarInsurance says that the average auto insurance rate in New Jersey, where NerdCarinsurance is based, is $1 a month, compared to $1 in California and $1 nationally.
Nerd CarInsurance has also found that nearly 30% in New Hampshire are paying their auto insurance on their own, compared with 16% nationally.
In New York state, the average rate is $3 a month for auto insurance, compared a national average of less than $1 per month.
NerdGauze.com has found that over half of renters pay their own insurance for their car, with an average rate of $13 per month, according the website.
NerdGasInsurance, which is based in Texas, said that the New Yorkers with the second-highest average auto rental rates are renters from Brooklyn and Queens, with rates of $17 and $15, respectively.
NerdInsurance said that over the past year, New Yorkers have been spending an estimated $1 billion on rental car insurance.
“In New York the average rental is over $1/month, but in California it’s closer to $2,” Gaffe said.
The data shows that New Jersey’s rental car crisis has reached a fever pitch, with several large cities like New York in the top five most indebted states for rental companies.
According a NerdWallet study, New Hampshire is the second most indebted state for renters, with approximately $2.2 trillion in outstanding auto loan debt, while New York has $1 trillion in loans outstanding.
Nerd Wallet found that Nevada, which also has a large population of renters, has the second highest debt burden for car owners, with over $3.6 trillion owed in unpaid car loans.
New Jersey was second in debt burden among the states with more renters, behind California.
In fact, New Yorker renters are the most indebted in the country, with nearly $2,500 in outstanding loans