The "Rent a Car" Market in Panama

Around 10,000 vehicles are used by 28 companies engaged in car rental in Panama, a business which generates about $77 million a year.

Tuesday, November 4, 2014

Between international and local franchises, the vast majority of companies engaged in the car rental business are established in the capital and state that their customers are 50% foreigners visiting the country for tourism and 50% nationals. Car rental prices range from $15 per day and the requirements are minimal due to the demand in the market.

Gilberto Arosemena, president of the National Vehicle Leasing Association (Anav) told that "... This competition has benefited customers, but not companies, which have seen their revenues fall. Another of the problems in this market is the increase that has occurred in the price of cars, starting from $10,000 and reaching costs in some cases up to $100,000, depending on the type of customer, who in many cases prefer luxury cars."

Morriel Fernando, General manager of Ancón Rent a Car, added ".... Another drawback is that given the poor condition of the streets in Panama, the cars only last about 9 months. Because of this problem, companies must invest quickly in order to improve their fleet or spend large sums of money to properly maintain the cars and extend their lifespans a little more."

More on this topic

Rent a Car: Business Potential and Evolution

November 2020

Between July and October 2020, the number of people in Guatemala exploring luxury car rental options online increased 28%, while the number of Panamanian consumers seeking to rent a compact car decreased 53%.

CentralAmericaData's interactive platform, Consumer Insights, monitors in real time the evolution and changes in consumer habits in all markets in the region and in other Latin American countries, with fundamental information to understand their behavior, new trends and anticipate eventual changes in their purchase patterns.

Rent a Car and Covid-19: Business Perspectives

March 2020

If the quarantine and mobility restriction measures are extended by two months, it is predicted that by the end of the year the annualized demand for car rental services in Central America will have fallen by 30%.

The "Information System for the Impact Analysis of Covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the impact that the crisis will have on companies according to their sector or economic activity, considering different scenarios for the coming months.

As Tourism Grows, So Do Other Businesses

November 2017

With the arrival of more flights to the two main airports in Costa Rica, complementary businesses such as car rental and air catering services are benefitting.

In order to meet the increased demand generated by an increase in the arrival of flights and new airlines coming to the airports Daniel Oduber, in Liberia, and Juan Santamaría, in Alajuela, companies that provide complementary services are making new investments to expand their production capacity and improve the quality of their services. For example, several rent-a-car companies have invested in improving and expanding their vehicle fleet. 

Another "Rent a Car" in Costa Rica

February 2015

The company Enterprise Rent-A-Car has announced it will be investing $12 million in the purchase of 500 vehicles to begin providing a car hire service in the country.

Enterprise Rent-A-Car, through the ANC Group, which operates the franchises Alamo Rent a Car and National Car Rental, will provide a car rental service initially in five strategic points: Liberia, Belen, Lindora, and Juan Santamaría and Daniel Oduber airports.