Last Updated on August 27, 2022
Contents
Learn How To Save Money On Car Rental
Let’s face it — cars are expensive (especially if you are a student). By buying a car and having to maintain it, it could cost you a lot of money throughout your life. Despite that, there are times in your life when a car is necessary. If you know how to drive and have a license, but you do not own a car, you can rent one when you need it. People tend to rent cars:
- For traveling
- For a road trip
- To save money
- To have more freedom
No matter the reason, renting a car comes in handy for your daily activities, especially if you live in a big city. Also, renting a car can be excellent if you need a vehicle for a shorter period. For example, you may have some activities for a few days that require you to have a car or maybe you need it for a vacation. Either way, renting a car is great because it gives you more freedom and saves you time.
Some also rent cars and trucks for their businesses. Other people also figured out how to start making money while renting a car. For example, you can rent a car and then use it to drive for Uber.
You can see that it can be more profitable to rent than to own a car. Either way, you must also be wondering how to save money on car rental. If you have already decided to rent, why not gain knowledge on how to do it for less money. We will mention some tips for how to save money on renting a car.
Why Are Car Rentals Expensive
Even though renting a car is less expensive than owning one, that does not mean that renting a car is cheap. It can come with a high price. In the USA, car rental prices rose in 2021. It does not seem that they are going to lower anytime soon.
Today, if you want to rent a car for a day, it could cost you around $80, depending on the location. If you want to rent it for a whole week, you would have to pay around $550. That is a lot of money. Car rentals are expensive, and the prices are still rising. Some of the reasons for that are:
- Type of cars
- Location
- Insurance
- Car rental shortage
When you rent a car, the first question they ask you is what type of car you need. Every car rental company has different categories of cars. Depending on the size of the car, the price can vary. Also, the type of cars are intended for different number of passengers:
Category | Number of passengers |
Economy vehicles | 4 |
Compact vehicles | 2 |
Standard vehicles | 5 |
Luxury vehicles | 5 |
Location can also be a big factor in the price. It usually depends on supply and demand. Also, fees vary in different states and that affects the price too. Be careful with the hidden fees. They include:
- Facility fees
- Transponder fees
- Extra fees
Insurance is great in case of accidents or damage. Many companies offer insurance when you rent a car from them, but it can make the price even higher than usual. If you plan to drive the car in places where there is a lot of traffic, insurance can be great. That is because in that scenario there is a higher probability of an accident. Be sure you actually need it, so that you do not waste extra money.
In the past two years, there has been a huge shortage in the car rental industry. That is because of some supply issues and people selling their cars during the pandemic. Some rental companies also sold their cars during the pandemic because they struggled. Today, it can be kind of difficult to find a car to rent. That drives the prices higher than usual, and it is expected that this trend is going to last for a while.
How to reduce the costs of renting a car
If you want to reduce rental car costs, you should research various companies. For example, if you travel, make sure to find a company that is not too close to the airport. Also, do not forget to compare the prices of different rental companies. You will see that some of them offer better services for a better price. You can compare prices on Costco Travel or Hopper.
If you already booked a car but found a better deal, you can check and see if you can cancel the reservation without any fees. Some companies allow you to cancel the reservation if you made it online, without paying any fee. If you have little children, do not rent car seats. Instead, make sure to bring your own child’s seat since that will save you money.
Pros And Cons Of Renting A Car
Many people argue about whether it is better to rent or own a car. There are pros and cons to both of those things. If you are more of the type that likes to rent a car when you need it, you should know the following pros:
- Better, more modern vehicles. Rental companies usually have the latest models of cars.
- Bigger cars for the family. If you have a large family, you can get a car that suits your size.
- Cars for vacation. If you plan to go on a vacation and sleep in a motorhome, then renting one is the cheapest option for you. That way, you will save on vehicles and hotels.
- Saving you from debt. If you need a car for a longer period, you could rent one using cash. That way, you won’t fall into debt for buying a car and then having to fix your credit score.
The cons of renting a car are the following:
- Strict terms. You need to file specific documents to get approval for renting. The terms and conditions of some companies can be strict. For example, there are some hidden fees. The reason they do this is so that renters are careful while they use the cars.
- Extra fees. There are various fees that you will have to pay. That won’t happen if you own your car.
- Fraud. You can be tricked if you trust a company that is not certified. Make sure to do your research before you rent a car.
Tips For Renting A Car For Cheap
You can rent a car cheaper if you implement some tips. As we said, today, car rentals cost a lot of money, so every person that wants to rent needs to make sure to use these tips:
- Book early
- Check for discounts and coupons
- Book through Autoslash
- Join loyalty programs
Booking a car earlier guarantees you that there will be a car available and could cost you less money. Be sure to avoid the peak season, such as the summer months, since companies can raise the prices for tourists. The best time to book a car for a normal price is three to six months ahead of the date you need it.
Car rental companies can have discounts and coupons available. Check on their websites or use extensions like Rakuten to get them. Also, there are discounts available on Groupon.
Autoslash is a useful car rental service that allows you to save some money. They notify customers of price drops and track your rental. Autoslash digs deeper by testing hundreds of coupons and discount codes against your rental to ensure that you have the lowest price possible.
Loyalty programs are a great way to save money on rental cars. They can help you even more if you tend to rent more often. They are a great way for you to collect points and then use them to reduce the price for the next car rental.
Where To Rent A Car On A Budget
It depends on the location and the state, but there are a few places in the USA where you can rent a car on a budget:
- Budget Car Rental
- Enjoy Travel
- KAYAK
- Dollar Rent A Car
- Avis Car Rental
You can also check and rent a car through Turo. It works like Airbnb, but for cars. People rent their cars to other tourists and travelers for a limited time. Other great sites that work like Turo, are:
- Getaround
- CarShare
- Lyft Rentals
Getaround | CarShare | Lyft Rentals |
Different type of cars | 50+ vehicles | Free ride credit |
You can rent for an hour or various days | 3,000+ CarShare members | Professionally cleaned cars |
You can arrange everything from the app | You can reserve a car up to a year in advance | Unlimited miles |
How To Save For Car Rental When Traveling
When you plan your vacation, there is a good chance that you are going to need a car. Here is where car rental companies come in. Before you go on your trip, make sure that you have money in your budget for renting a car. Today this can cost you a significant amount of money so be sure to make a budget for it. You can do that with the help of some budgeting methods:
You can combine the methods or use each one separately. For example, you can use the last one and save money on bills. Then you can use the saved money for renting a car on your trip. If you use the first method, be sure to include an envelope for car rental savings.
Frequently Asked Questions (FAQ)
How much does it cost to rent a car?
Today, it is expensive to rent a car. The price depends on many factors, including time, size, and location. To rent a car for one day it would usually cost you from $80 to $300.
What kind of cars can you rent?
You can rent any kind of car. You can even rent a truck if you want. Rental companies have a huge catalog of cars, and you can pick the one that suits your needs. If you are more into luxury vehicles, you can rent a sports car or SUV. Also, it is possible for you to rent a limousine for a special event, like a wedding or awards ceremony.
Do you need insurance to rent a car?
Yes, you do need insurance for this, but you can get it through the rental company. Rental companies insure their cars, but you are responsible if damage occurs while you are driving it. If you plan to use your personal car insurance, double check that it covers you while driving a rental. It is best to have some form of insurance to protect yourself.
What is the best site for renting a car?
According to a 2021 KAYAK article, in the USA the three best places where you can rent a car are:
- Enterprise (with a rating of 97.5%)
- Alamo (with a rating of 94.3%)
- Hertz (with a rating of 91.3%)
Keep in mind that these ratings could change in the future.
Should you have a license to rent a car?
Yes, you need a license if you want to rent a car. No company will rent you one without it. If you are a foreign citizen and have foreign license, you can present an International Driving Permit. Then the company will permit you to rent a car from them.
Sources:
2021 Kayak Travel Awards – Best Car Rental Companies Worldwide. KAYAK. (n.d.). Retrieved August 6, 2022, from https://www.kayak.com/travelawards/2021/best-car-rental-companies/worldwide/best-car-rental
Blanco, S. (2022, January 18). Car Rental Average Daily Price up $35 just since December 2019. Car and Driver. Retrieved August 6, 2022, from https://www.caranddriver.com/news/a38797011/car-rental-price-increases/#:~:text=Prices%20to%20rent%20a%20car%20in%20the%20U.S.%20hit%20record%20highs%20at%20the%20end%20of%202021%2C%20and%20it%20doesn%E2%80%99t%20look%20like%202022%20will%20provide%20a%20lot%20of%20relief
Hopper. (n.d.). Hopper price tracker. Hopper. Retrieved August 6, 2022, from https://media.hopper.com/research/hopper-research-dashboard-beta