How To Save Money On Car Rentals
Renting a car is often a crucial part of any trip, giving you the freedom to explore any new destination at your own pace. However, according to a study by Kayak, the average cost of a rental car in the US ranges from $50 to $80 per day, or about $500 per week as of April 2024, which can quickly put a strain on your purse.
Despite rising costs, travel remains a top priority for many. But what if you could enjoy the convenience of a rental car without spending too much? Here are some practical tips on how to save money on car rentals. So, you can travel freely without worrying about the rising costs of car rentals.
10 Ways to Save on Car Rental
With a little bit of planning, you can save considerable money on car rentals. We have listed a few tips that will help you save more and travel more.
1. Ditch the Airport Cabs
You might think grabbing a rental car right at the airport is the easiest option, but this convenience often comes with a hefty price tag. Airport car rental locations typically charge higher rates due to increased demand and additional fees. When you rent a car at the airport, you’re likely to encounter:
- Customer Facility Charges: These are fixed daily fees that can add up quickly throughout your trip.
- Percentage-based surcharges: Some airports charge an additional percentage of your total rental cost.
- Combination charges: In some cases, you might face both fixed and percentage-based fees.
These airport-specific charges can inflate your rental costs, sometimes adding a three-figure sum to your bill for longer trips. How do you tackle these additional costs while also renting a cab? Go downtown!
A NerdWallet study revealed a compelling reason to look beyond airport rentals. By analyzing rental car prices across American airports, they found:
- Downtown car rentals were, on average, $86 cheaper than airport rentals for a seven-night period.
- You can expect to pay about 18.4% more when renting a car at the airport compared to a downtown location.
So, if you want to book a cab but don’t want to pay additional fees, you can make the switch to downtown rental locations. Here is how you can do it:
- Research downtown rental locations near your destination.
- Compare prices between airport and off-airport options.
- Factor in the cost of transportation from the airport to the downtown rental location.
- Consider if the potential savings outweigh the extra time and effort required, and then make a decision.
By being flexible with your pickup location, you could save a lot on your car rental. Remember, a little extra planning can go a long way in reducing your travel expenses.
2. Compare Prices Online
When it comes to saving money on car rentals, the Internet is your best friend. Here’s how you can compare the cab rental prices to snag the best deals:
- Start with Aggregator Sites: Kick off your search with popular aggregator sites like Kayak, Priceline, and Cheapcarrental.com. These platforms will show you options from various rental companies side by side, making it easy to compare prices, car types, and rental terms.
- Try the Prepay option: Many companies offer “Pay Now” options that can save you up to 35% on your rental. Just remember, these prepaid rates are usually non-refundable, so be sure about your plans before committing.
- Price-matching: If you spot a lower price elsewhere, don’t be shy about calling the rental company directly. Many have price-matching policies and might be willing to adjust your rate. It never hurts to ask!
Here’s a pro tip: Even after you’ve made a reservation, keep checking prices. If you’ve booked a refundable rate (which is often a smart move), you can cancel and rebook if you find a better deal later.
3. Find Coupons
If you’re looking to save money on car rentals, coupon sites like GrabOn can be a goldmine for discounts and deals. With just a little effort, you can significantly cut down your rental costs. Here's how you can make the most of these platforms:
Start by visiting popular coupon platforms like GrabOn, which frequently updates its listings with verified promo codes for major rental services such as Lyft, Priceline, and Thrifty. Here are some examples of what you might find:
- Lyft: Earn a $50 bonus in points for rides.
- Priceline: Enjoy up to 20% off on selected car rentals.
- Thrifty: Get a flat 10% discount on airport pickups.
- Budget Rent a Car: Save up to 35% on sitewide rentals or enjoy specific discounts on categories like luxury cars.
Coupon sites often update their listings, so check back regularly for new deals. By taking advantage of these coupon sites and offers, you can make renting a car much more affordable.
4. Use Memberships
If you’re a member of organizations like Costco or AAA, you have access to some fantastic savings on car rentals. So, why not use it? Here's how you can leverage these memberships to keep your travel costs down:
Costco Membership Advantages
Costco often beats the prices found on full-price rental agencies and online travel sites. Here's what you need to know:
- Exclusive Discounts: Costco members can access special rates from major rental companies like Alamo, Avis, Budget, and Enterprise.
- No Extra Driver Fees: You can often add a driver for free when renting through Costco.
- Rewards for Executive Members: If you’re an Executive Member, you can earn a 2% reward on purchases made through Costco Travel, including car rentals.
AAA Membership Advantages
AAA isn't just about roadside assistance; it also offers valuable discounts on car rentals:
- Discounts with Hertz: AAA members can save up to 20% off the base rate on Hertz rentals in the U.S. and Canada. Plus, if you’re between 20 and 24 years old, AAA waives the underage driver fee, which is typically around $25 per day.
- Free Add-ons: When renting from Hertz or Dollar Rent A Car, AAA members can add a second driver or a child safety seat at no extra cost.
Visit the respective car rental websites to know more about how to save on it with various memberships. You can use memberships like Costco and AAA effectively to make car rental more affordable and save more on travel!
5. Travel with Economy Cars
You can always save money by making smarter choices, like cooking in and taking an economy cab. Economy cars are typically the smallest and most affordable vehicles in a rental company's fleet. So, you can book them when you are traveling alone or have a smaller group. Moreover, these vehicles are not only budget-friendly but also fuel-efficient, making them a win-win for cost-conscious travelers.
Tips for Booking Economy Cars
- Book Early: Economy cars are popular and tend to get booked quickly. Reserving early ensures you lock in the lowest rate.
- Compare Prices: As mentioned before, you can use aggregator sites like Kayak or Priceline to find the best deals on economy cars across multiple rental companies.
- Check for Discounts: Look for promo codes (on sites like GrabOn) or membership discounts (like AAA or Costco) that apply to economy rentals.
Here's another pro tip: Reserve the smallest, cheapest car available. If the economy car isn't on the lot when you arrive, rental companies will often upgrade you to the next available category at no extra cost. This could mean driving off in a mid-size or even a full-size car for the price of an economy vehicle. However, keep in mind that this trick works best when you're flexible and don't absolutely need a larger vehicle.
6. Skip Paying for Extras
When renting a car, it's easy to get caught up in the rental agent's pitch for add-ons like GPS navigation, toll transponders, car seats, or additional driver fees. While these extras may sound convenient, they can quickly add to your expenses. Here's how you can save money by avoiding unnecessary charges:
- Bring Your Own Navigation Tools: Avoid $10-$15 daily GPS fees by using free smartphone apps like Google Maps or Waze.
- Decline Toll Transponders: Rental toll transponders can cost $4-$10 per day. Opt out and use apps to avoid tolls, or bring your own compatible transponder.
- Skip the Car Seat Rental: Renting a car seat can add $10-$15 per day. Bring your own for safety and familiarity.
- Limit Additional Drivers: Extra driver fees can range from $5 to $15 per day. Some companies waive these fees for loyalty members or spouses, so limit drivers when possible.
- Say No to Prepaid Fuel Plans: Prepaid fuel plans are often pricier than local gas stations. Fill up the tank yourself before returning the car to save money.
- Decline Insurance Add-Ons: Rental insurance can add $10-$30 daily. Check your personal auto insurance or credit card benefits for coverage before accepting these extras.
- Avoid Satellite Radio: Satellite radio can cost $5-$10 per day. Use free music streaming apps on your smartphone instead, and connect via auxiliary cable or Bluetooth.
Hidden fees are often buried in the fine print of rental agreements, so make it a habit to read through them carefully before booking. Knowing what's included and what's optional will help you avoid unnecessary extras.
7. Top Off Your Tank Smartly
Fueling your rental can be confusing; sometimes, you have to return it with an empty tank, and sometimes, you have to fill the tank. That's why you need to refuel your rental car wisely so you can avoid paying inflated fees from rental companies.
Rental companies often charge exorbitant rates for refueling if you return the car with less gas than required. Inquire about their fueling policy – empty tank, full tank, or same level. So, you can return the car as such and avoid paying additional fees for fuel.
Another saving tip is using GasBuddy to fill gas. GasBuddy is a free app that helps you find the cheapest gas stations nearby, including those close to your rental drop-off location. This is especially useful if you’re returning your car near an airport, where gas prices tend to be higher. A small detour to a cheaper station can result in huge savings on gas.
While prepaid fuel plans might seem convenient, they are rarely cost-effective unless you plan to return the car with an empty tank. Most rental companies don't refund unused fuel, so you could end up paying for gas you didn't use. Instead, opt for refueling on your own to pay only for what you need.
8. Leverage Travel Credit Cards
Travel credit cards can be a game-changer when it comes to saving money on car rentals. Many premium cards offer perks like discounts, complimentary upgrades, priority service, and even primary collision damage insurance. Here's how you can make the most of these benefits:
How Travel Credit Cards Help Save on Rentals
- Discounts and Upgrades: Many cards, like Chase Saphire Reserve, provide exclusive discounts on rental rates and free upgrades to higher-tier vehicles.
- Elite Status: Some cards, like the United Club card, automatically enroll you in rental loyalty programs, giving you perks like priority service, waived fees for additional drivers, and faster rewards accumulation.
- Primary Collision Damage Waiver: Certain cards offer primary insurance coverage for rental cars, saving you from purchasing expensive add-on insurance from rental companies.
- Free Rental Days: Some cards reward frequent users with free rental days after meeting specific spending or rental requirements.
Here's a comparison of popular travel credit cards and the benefits they offer for car rentals:
Top Travel Credit Cards for Car Rental Perks |
||
| Credit Cards | Rental Company Benefits | Additional Perks |
| Chase Sapphire Reserve | Earn 10X points on car rentals and Lyft rides. You get discounts at Avis and National. | Travel insurance, including trip cancellation and interruption insurance. |
| American Express Platinum | Hertz Gold Plus Rewards offers free five-star elite status and up to 25% off Prestige Collection vehicles. Avis offers priority service, discounts, and free two-day weekend coupons after qualifying rentals. | With Hertz get complimentary upgrades and an additional driver for spouse/civil partner. |
| Capital One Venture Rewards | Hertz President's Circle status and discounts of up to 25%. | Get a primary collision damage waiver (covers physical damage and theft of the rental vehicle). |
Using travel credit card perks wisely can reward you with great savings. You can also enjoy the additional perks that come with it, like insurance, damage cost waiver, and free additional driver.
9. Borrow from Turo
Turo, often referred to as the “Airbnb for cars,” is a peer-to-peer car-sharing platform that allows you to rent vehicles directly from individuals. Rather than renting from a cab rental agency, you rent your car from a person.
Why Turo, though? Because it offers great pricing! Car owners set their rates, which can sometimes be cheaper than traditional rental companies, especially for older or less in-demand models. Moreover, you can choose from a variety of options – it can be an affordable economy car, a luxury ride, or even an electric vehicle.
If you want to book with Turo, always compare Turo rates with traditional rental companies to ensure you’re getting the best deal. To get better prices, you can also try booking the vehicle in advance.
10. Walk Whenever You Can
One of the simplest ways to save money on car rentals is to skip the rental altogether and rely on walking or public transportation. Many major cities are designed to be pedestrian-friendly, allowing you to explore key attractions without needing a car. If your destination has a compact city center, consider buying a metro or bus pass for unlimited rides, which can be more affordable than paying for a rental car and parking fees.
For short trips, rideshare services like Uber or Lyft can be a cost-effective alternative. You can learn more on how to save on Uber and Lyft rides. Please plan your itinerary around walking and utilizing public transit, so you can skip the rentals, and save big!
Wrapping Up
Car rentals can put a huge dent in your travel funds if you don’t know how to book them correctly. Fortunately, there are several ways, such as using your travel credit cards or taking advantage of membership, to secure affordable car rentals. You can use the tips mentioned above to book car rentals and save more! If you are still looking for travel tips, check out our blog on How to Save Money on Flights. Happy savings!
