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Renting a U-Haul to move out of California can be 4 times more expensive than moving due to high demand.
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An easy way to find out who is moving where is to look at the prices of moving to and from cities. And moving truck prices from California cities – well, they’re high. Definitely higher than the prices in other cities
The trend was first pointed out by Mark J. Perry, professor of finance and business economics at the University of Michigan Flint, who tweeted: “Leaving California has become more expensive due to high demand and shortage of available trucks. Moving to California. It is becoming really affordable due to low demand and increased availability of trucks.”
Not long after, Jalopnik reported the same, where an apparent increase in demand was driving up prices for moving trucks out of California. Perry said higher out-of-California prices are a long-term trend that “isn’t necessarily related to the COVID-19 pandemic or the wildfires, but business insiders took a look at rental-truck prices for themselves. Here’s what That’s what we found.
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Through the holiday deadline of September 30, U-Haul’s truck rates from Austin, Texas to Los Angeles, California, range from $711 for a 10-foot truck to $935 for a 26-foot truck.
Prices for the other route, Los Angeles to Austin, ranged from $1,883 for the same 10-foot truck to $3,964 for a 26-foot truck during the same period. These rates were measured to be two and four times different than the other way around.
Also with a September 30 departure date, from Austin to San Francisco, California, prices range from $459 for a 12-foot truck to $976.50 for a 26-foot truck.
Prices from San Francisco to Austin increased to $2,154.60 for a 12-foot truck and $5,420.70 for a 26-foot truck. These prices have reached a difference of about five times the opposite travel.
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It should be noted that one-way fares are historically more expensive than round trips. But a U-Haul spokesperson told Jalopnik that “it’s reasonable to conclude that there is a lot of demand in the market for one-way equipment, which reflects the higher costs for removal.”
Business Insider reached out to U-Haul and Budget, asking for additional information on what the increase in demand suggests, how long they estimate that demand will last, and how rental rates are determined.
Budget has yet to respond, but a U-Haul spokesperson provided Business Insider with the same statement that Jalopnik did:
U-Haul uses a proprietary pricing and distribution system. Our management team considers many factors when determining the price of renting equipment from one location to another, not the least of which is supply and demand. We strive to make our tools available to everyone at the lowest prices, regardless of whether the customer is traveling in the United States or Canada. However, managing our fleet allocation and seeing that DIY moving equipment is available at all of our 22,000-plus rental locations can lead to lower prices when traveling to certain markets at certain times. When there is a significant difference in the price of the same one-way equipment between two markets for the same date, it is reasonable to conclude that there is too much demand for one-way equipment in the market to exit. reflects higher costs for
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It’s unclear whether the ongoing COVID-19 pandemic, lockdown measures, and the largest wildfire in California history are contributing to the spike, but Perry wasn’t quick to lay blame on the current events.
Perry told Business Insider in an email that rates out of California have been higher than rates into California for many years, and that state-to-state migration patterns indicate that California has at least It was one of the top foreign countries for several years. “That’s consistent with U-Haul truck rates, Perry said.
In a November 2019 blog post for the American Enterprise Institute, Perry wrote that California was the fourth-highest foreign state.
“So, this is a long-term trend that’s not necessarily related to COVID or the wildfires,” Perry told Business Insider. “This reflects a trend of companies and families leaving CA for the states of Texas, Arizona and Nevada for lower taxes, lower housing costs, lower energy costs, and a business-friendly environment.”
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“As companies leave CA and job opportunities dwindle, families leave for better job opportunities in other states. So I think leaving CA is what families leave, and many rent U-Haul trucks to be replaced.” This post contains product references. From one or more of our advertisers. We may receive compensation when you click on links to these products. Terms apply to the offers listed on this page. For a description of our advertising policy, see this page.
So, buying a last-minute flight from Los Angeles (LAX) to Orlando (MCO) in late April to see the annual hang gliding competition in Groveland, Florida—a trip a paraglider pilot planned with friends who Also fly – nothing was out of the ordinary. What was unusual, however, were the rental car prices that Salmon found when she went online to search for prices for her three-night trip.
She immediately called a friend who is qualified to fix travel sniffs for advice, but they came up short. However, a solution came to her when she was out for a walk.
Salmon told TPG that she found a cargo van from a U-Haul pickup site near the Orlando airport for $19.95 a day, plus an additional $10 in mileage charges during her trip.
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The entire rental cost her less than $100 — and she saved a lot because she could skip the hotel and sleep in the van during the event, thanks to friends in Florida who provided an air mattress and pillow. had Salmon said they even bought her a magnetic screen from ACE Hardware to keep mosquitoes at bay.
The delayed flight meant Salamon landed at the Orlando airport late in the evening, so no one was working at the off-site U-Haul office when she arrived. Additionally, the U-Haul app did not work for her to pick up the van.
But even though she didn’t have access to the U-Haul until the next day, Salamon told TPG she still considers the experience a success.
“It was clean and very comfortable,” she said of the van. “For less than $100, I had a hotel and a car for my trip.”
Future Classic: 2015 Ford Transit 250
With travel receding for many families and even some international destinations, car rental inventory and rising prices make it difficult — and expensive — to find a rental car right now. Travelers everywhere are calling the current situation Carmageddon (among other… more creative terms).
A late April search on Orbitz for car rentals in the cities of Tampa, Florida and Key West showed prices around $500 per week for May dates. In Honolulu, car rentals were over $1,000 a week during the same dates. CNN recently reported car rental prices in Maui were an obscene $722 a day.
While not all parts of the country suffer from this problem (for example, a car rental in Aspen, Colorado was priced at about $250 per week on Orbitz for the same week in early May ), travelers should be aware that renting a car right now may come with sticker shock — if you can even afford to get one.
Andrew Locke of the Travel Pro Show says he was also short on U-Haul rentals when he discovered Las Vegas car rentals were skyrocketing for a trip from London in mid-April. Locke, who rents a car on his travels once a month and usually books directly through Hertz, told TPG that he has a pretty good handle on the prices in general for car rentals in Las Vegas. have
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“It’s usually around $40 a day, but I’m seeing prices around $150 a day, even on sites like Auto Slash and Costco,” he said, referring to aggregator sites known for good prices.
Faced with this high price tag, he turned to U-Haul in the hope that it would be cheaper. Locke calculated how many miles he needed to drive around Las Vegas during his five-day work trip (about 100 miles) and also purchased U-Haul’s $40 insurance. He told TPG that renting a U-Haul instead of a traditional rental car is a no-brainer.
“For what it would have cost me for a day’s rental, I got a U-Haul for the whole time.”
He chose a cargo van, one of the smaller rental options from U-Haul. According to Locke, the U-Haul van was comparable to driving a large SUV — including parking. But Locke did
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