Holidaymakers heading to Spain face inflated car hire costs due to a vehicle shortage or in some cases a complete lack of available cars.

Holiday destinations such as Alicante, Malaga and Murcia have been worst hit as hire companies cut back fleet sizes to reduce operating costs in the face of recession.

Over Easter, some visitors were unable to reserve cars in these places and the same problems look likely to face those booking in August. The shortage of stock is down to a number of factors, all of which are tied to the credit crunch and recession.

Car hire companies blame the lack of affordable finance options from banks in the first half of the year, preventing them from buying new vehicles, and some companies have been selling nearly-new cars in order to pay off loans and not replacing them.

Car rental companies in Spain have been downsizing their fleets since last summer, says Bob Atkinson of Travelsupermarket.com.  “This is as a result of the drop in visitor arrivals from the various European markets that started in the autumn of last year,” he says. “It has seen visitors through the winter down by up to 18% from the UK alone – the single biggest provider of flight arrivals into Spain.

Clive Trotman travels with his family to Moraira on the Costa Blanca every year and can’t believe how much hire car charges have skyrocketed. In previous years, he paid £200 for a fortnight for an economy-size car; this year, the cheapest he can find is €600 (£515). Some firms were quoting more than £1,000 for modest-sized cars.

“The car hire has worked out as the most expensive element of my holiday. The return flights for all of us are only £360,” he says.

Quotes thanks to theguardian.co.uk