Road trips are a very popular option with solo travelers and I think it's safe to say that many of you are planning to hit the open road. For those who are not taking their own vehicle, we've got some great up-to-date advice on how to save money on rental cars.
Car rental prices have increased sharply since 2019. Stock went down, so we had the double whammy of low stock and high demand. We've all heard the horror stories about people planning a trip far in advance, then being unable to book a vehicle or arriving at the rental agency only to find that the car they had booked for their trip was not available. Add a lack of courtesy on the part of customers, not returning cars on time, into the mix and understandably, people were frustrated and angry.
While things have leveled out somewhat, costs are still quite high. Gone are the days when I could rent a car for CDN$29/day. Manufacturers are focusing more on satisfying retail demand, so there is less stock available for rental companies. On top of that, there seems to be a problem with customers making reservations then not honoring them, or making multiple reservations with different companies but not canceling the ones they're not going to use. This makes it very difficult for rental companies to manage their bookings.
What a mess.
But, fear not! We've got lots of tips to help you out.
Laying the Groundwork to Save Money on Car Rentals
Here are some things you can do in advance that will set you up for savings down the road, or at least inside information or perks that will improve your trips.
- Join rental company loyalty programs. If you don't already have a membership with your favorite company (or multiple companies, for that matter), check what benefits are available to members. There's generally no cost involved, and at a minimum, it will get you on the mailing list for advance notice of special promotions and discounts. It might also qualify you for upgrades.
- Make a personal connection. Whether you book with a large company or a small one, it pays to call and speak with an employee or even stop by the lot before booking. You may get information that will increase your chances of getting the car you want, when you want it. For instance, by chatting with staff at my local rental lot, I discovered that they receive deliveries of cars from other locations at specific times. I book my pick-up shortly after that time to ensure I have the best selection and greatest chance of availability.
- Be nice. These words of wisdom will serve you well in all areas of life: it never hurts to suck up. But seriously, car rental employees are being blamed for things that are beyond their control. Travelers are frustrated and tempers are flaring. Be the customer that makes their day. Wouldn't you want to help the person who has treated you well? I have been known to bring samosas to my rental guys, and they have been known to waive my excess mileage fee. Win-win.
- Consider sharing. Car sharing services have popped up in various cities. The concept is similar to VRBO or other home sharing sites. I haven't tried this myself, so I don't have a personal recommendation to make. There are many variables to take into consideration, but in checking the prices for a rental recently, the difference between Turo and Avis was substantial.
- Know your insurance needs before you book. First, check the credit card with which you will pay for your car rental as it may include insurance coverage. Check the terms and the deductible. Janice had a very positive experience with her VISA card when she had a small accident. The cost was covered, there was no hassle and no deductible. However, if she had been driving a higher class of car, she would not have been covered. Second, check your regular car insurance. It may cover your rental car while you're away, however your deductible will apply. Call your agent or check your insurance agreement.
How to Find a Deal on a Rental Car
In addition to the particular challenges facing travelers and rental agencies, the car rental industry operates on slim margins and makes up for them by increasing your daily rate in a variety of ways. Being on holiday, you may be particularly vulnerable to suggestions such as an upgrade to a convertible rather than the economy car you booked when all the costs of your trip were in front of you. Likewise, you may not have done enough research before leaving which makes you inclined to purchase unneeded insurance or other services, just to be on the safe side.
To help you stay on budget, we've got a few tips. Here's how to save money on car rentals.
- Shop around. Cast a wide net. Check prices everywhere from your favorite travel booking sites to any conveniently located car rental companies to membership stores like Costco or Sam's Club to new places that are offering rentals, such as Uber.
- Compare pickup locations. In some cases, rental prices can be less expensive if you pick up the vehicle at the airport. In other cases, it can be cheaper to pick up your car downtown. Check both if it makes sense for your plans. One reason that vehicles are not available on time is customers returning their cars late, and agencies have no excess stock to fill in the gaps. You might have better luck picking up your car at an airport because a lot of those customers will be dropping off cars on time in order to make their flights.
- Confirm the currency of the quote. Before you book, make sure the quote you've been given is in the correct currency for you. For Canadians, for instance, it's easy to book a great deal only to discover that the price was quoted in US dollars, increasing the cost substantially.
- Take advantage of your existing memberships. Take a look at the benefits offered by your various memberships, from AAA/CAA to alumni associations or professional membership organizations. For more ideas, check out the options in How to Cut Travel Costs with Memberships You Already Have. Also check your travel loyalty cards and credit cards for any discounts they might offer.
- Pay in advance and save. If you're absolutely sure that you'll be using the car why not pay in advance and save? How much you save will depend on the car rental company, the location, and the length of the rental. Remember, too that there are always a number of additional details in the fine print. Using the Hertz terms as an example, you can't combine the prepayment saving with any other promotional offer, voucher, or certificate.
- Choose the company that yields the most travel loyalty points. All else being equal, book with the rental company that offers points for your primary travel loyalty program. It may not allow you to save money on car rentals immediately, but will help you build points for future travel.
- Book through an airline. Is there a flight involved in this trip? Airlines often have partnerships with vehicle rental companies which can yield discounts if you book your flight and car rental together. It pays to check their prices.
- Save time and money by letting the deals come to you. AutoSlash finds the best deals based on the discounts that you are eligible for. They compare prices across all major rental brands. They even track price changes and alert you anytime they find a better deal. It’s a free service, so there’s no downside to giving it a try, even if you've already made a booking. A reader who worked in the industry for 30 years told us he can't beat the prices he's found on this site.
- Pick a rental location and stick with it. If your starting point is home, it can pay to patronize the same car rental location every time. When I was renting cars frequently, I developed a relationship with the staff at my local car lot. Because I was a regular customer, I would occasionally get free upgrades and penalties for late returns or mileage overages were sometimes waived.
- Search for coupons. Check to see if you have received any through the mailing list. If not, do a quick internet search to see if any coupons show up. They may provide a discount or a free upgrade.
- Book the least expensive vehicle. Assuming that you would be satisfied with the cheapest car in the rental company's fleet if you get it, you can roll the dice and book it, in the hopes that you will be upgraded. Economy and Compact cars are popular, and if they run out when they get to your booking on the day, you are likely to get a free upgrade. At worst, you'll get a cheap, small car. At best, you'll get a cheap, slightly larger car.
How to Keep Your Costs Under Control
- Ask before you accept the upgrade. If you are offered an upgrade, ask what it will cost. If you ask, the additional cost may be waived if they are upgrading you based on their inventory. If you don't ask, you could be charged for it. Always check the rental agreement before you sign to make sure the per diem rate is what you're expecting.
- Question the need for location-specific insurance. Car rental companies will propose additional insurance specific to your destination. For instance, when I head out to a rural area, I am often offered extra insurance in case a stone flies up and cracks my windshield. In Kauai, Janice was offered insurance in case she lost her keys at the beach. Make sure you know what your existing insurance is already covering.
- Pay with travel loyalty points. Do you have air miles sitting in your account? Using them to save money on car rentals can sometimes be a better deal than using them for flights. Watch for special reductions in the number of miles required for a gift card for your favorite car rental company. They generally won't allow you to pay for insurance with points, but you can definitely lower the total cost of your rental.
- Beware of impulse buys. Just like the shiny objects placed near store checkouts, you will be offered a variety of add-ons at the car rental counter. Don't get sucked in to paying for things you don't need. Staff have to offer them because the company makes very little off the daily rental rate; the real money comes from the additional options such as satellite radio, GPS, or mobile Wi-Fi. But unless you really need them, there are less expensive options. These three items would add $47/day, plus tax, to my costs at my local rental company.
To Save Money on Car Rentals, Avoid These Mistakes
- Don't smoke or vape in your rental. Most car rental companies have a no smoking policy for their entire fleet. If you think you can smoke with the windows open and get away with it, think again. If the next customer refuses the car because of the lingering odor, it will have to be taken off the road for deep cleaning and deodorizing before it can be rented again, exposing you to cleaning fees that can run to hundreds of dollars.
- Make sure your co-pilot doesn't leave anything behind. If you travel with your pet–and most rental companies will allow it–make sure to clean the car very well before returning it. Consider crating your pet or confining it to one area in some way. As with smoking, pet fur and lingering odors can cost you a pretty penny in cleaning fees.
- Don't pay for them to fill your tank. Many car rentals offer a fuel purchase option which means that they will refill the tank for you – at a price. It will be more expensive than doing it yourself. It may be a minor inconvenience to have to stop on your way back to the rental lot but it is a cost-saving decision.
- Don't return the car late–or early. It's obvious that a late return can cost you in penalties–as much as an additional day's rental, in some cases–but it can be equally problematic to return a vehicle early without notice. If you want to drop your car off a day ahead, contact the rental company in advance to change your booking and avoid any fees for not adhering to your contract.
- Don't forget to check the mileage limit. If you're going on a short trip, a car with a defined mileage limit may be just fine for you. But if you're going on a road trip where your itinerary is open or you don't actually know at the outset how far you will drive, make sure your rental comes with unlimited mileage. The penalty for exceeding the limit can add up quickly, charged by the mile or kilometer. Note that this isn't always just about total miles on the car, but that fees can be charged for mileage incurred when crossing into another state.
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