CAR hire firms in the Costa del Sol are being forced to reduce their fleets as banks are not offering sufficient credit.

A fleet of 40,000 cars belonging to 200 car rental firms is now at risk in Malaga.

The financial crisis, and the decline of the travel industry have been blamed for the lull in people hiring vehicles.

Central Car manager Antonio Quintana said: “To maintain a fleet of 100 cars a company is left with around 1.3 million of debt.

“But with the banks refusing to issue credit to buy fleets, there are fewer cars to offer.”

President of the Association of Rental Services Ana Maria Garcia said: “The lack of funding has wreaked havoc.”