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5 min read Published 19 October 2022
Written by Rebecca Betterton Written by Auto Loans Reporter
Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers in navigating the ins and outs of securely borrowing money to purchase a car.
Edited by Rhys Subitch Edited by Auto loans editor
Rhys has been editing and writing for Bankrate since the end of 2021. They are dedicated to helping readers gain the confidence to take control of their finances with precise, well-researched and well-written facts that break down otherwise complicated topics into bite-sized pieces.
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We make sure that everything we publish will ensure that our content is reliable, honest and reliable. We have a team of loans reporters and editors are focused on the areas that consumers are concerned about the most — different types of lending options as well as the best rates, the best lenders, the best ways to pay off debt and more — so you’ll feel safe making a decision about your money.
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Whether you’re going on vacation and want the convenience and freedom of wheels while exploring or require a vehicle while you’re at work it’s likely that you’ll need to take a rental car at some time. In 2021, there were 1.8 million cars that were in rental service in 2021 . Prices vary based on the type of vehicle you lease, the rental car firm you select and the location where you lease the car. Understanding the factors that influence the cost will allow you to budget for the cost. Typical cost of a car rental The expected cost to rent a vehicle varies according to factors such as location, type of car and rental company. The average price in mid-October 2022 was about $81 per day . To calculate your expected cost contact Hertz, Enterprise, Avis or other rental companies you’re considering to best prepare for the price. The factors that affect rental car prices Several aspects influence the price of renting a car — regardless of whether they’re within or outside your control. You can save money by knowing what influences cost. Car type When choosing an automobile rental, the first question most renters are asking is how much space they require. Car rental companies categorize their vehicles according to size. Economy cars are usually the cheapest and smallest rental companies offer. They can accommodate one or two persons, together with luggage. The compact or intermediate models offer more space than economy cars generally through more space inside the trunk. Intermediate cars can hold up to four people and a minimal volume of bags. Standard vehicles with full-size back seats can accommodate four adults. They also have ample trunk space, making them a good choice for families that have a considerable amount of luggage to bring along. Luxury cars are high-end vehicles that include everything from sportsy convertibles to large SUVs and vans. Most of the time, the daily rental fee will increase with the size and type of the vehicle or truck. However, some rental firms offer discounts for vehicles belonging to certain categories particularly when they are able to have a large number of vehicles available. For instance, if the company has a limited quantity of economy cars to rent during a particular weekend, they may offer discounts on the standard cars. Here are the lowest cost per day for various kinds of vehicles, according to Kayak. Type of vehicle
Approximate capacity
Least expensive rate per day
Economy
2 adults 2 bags
$14
Compact
4 adults, 2 bags
$10
Intermediate
5 adults 3 bags
$14
Standard
5 adults 3 bags
$23
Full size
5 adults 2 bags
$18
Full-size SUV
5 adults, 2 bags
$34
Minivan
5 adults 5 bags
$30
Premium
5 adults 5 bags
$26
Kayak at the time of writing in October 20, 2022. Location As with other goods or services, costs fluctuate according to supply and demand. A lot of people get better car rental prices close to the heart of the city instead of the airport. Prices for rental vary across different areas of the country. Areas that attract a lot of tourists may have lower rental fees than other areas due to the increased competition. But they may also have higher fees during popular seasons where demand is extremely high. The location
Average rental cost per day
Atlanta
$50-$85
Chicago
$47-$85
Houston
$51-$84
Las Vegas
$47-$78
Los Angeles
$48-$67
Miami
$34-$64
New York
$68-$111
Orlando
$43-$65
Kayak at the time of writing in October 2022. Age of the driver The renter’s age greatly influences the cost. The younger the driver, the higher the cost because young drivers increase risks to rental businesses. Some rental companies do not even rent to those younger than the age of 20. Rental companies may charge additional charges for renters under the age of 20. Depending on the state the fees could range from $40 to $65 per day. Consider these higher prices in determining the driver of your rental. Some states allow fee for drivers of certain age groups. For example leasing from Enterprise in Michigan comes with an additional $40 daily cost for drivers between 18 and 20 years old, and $19 for daily drivers between the ages of 21 and 24. Young renters in New York can expect to be charged an additional $64.50 in order to cover their age. But not every rental company charges these fees. Consider both the daily cost as well as additional fees when you decide which rental company to use. How to get the best price on your rental car While the cost of renting a car is determined by a variety of factors but there are several things you can do to drive away with some extra money in your pocket. Comparison shopping You can save money when you rent your car by comparing. Prices can vary by rental agency, so doing a bit of research could get you a better price. Comparison sites like Priceline, Expedia, AutoSlash and Kayak make it easier to compare rental car quotes. Visit the websites of the rental agencies to ensure you’re getting the most affordable price for the vehicle. Make sure to fill the tank with fuel. Make sure to fill up the gas tank prior to returning your rental car to the rental company. You’ll avoid additional fees for fueling. Make reservations early. Making reservations ahead of time will allow you to choose the right vehicle, avoid long lines, and possibly save money. This is especially crucial if you intend to travel extensively during a holiday. Don’t add any additional items before receiving the keys to your rental, you will likely be offered several add-ons. The options could include GPS or toll plan, accessibility to XM radio or the option of car seat. Do not use these features if you are able to save money. This is a costly extra-cost option that is usually presented when you reserve or collect the car. It can add 15 to $30 per day to your bill but could save you thousands if you’re involved in an accident, or the vehicle is stolen. The four common types of rental car insurance include: Loss and damage waiver (LDW) or collision damage waiver (CDW) will provide coverage in the event that your car is damaged or stolen Supplemental insurance for liability: shields your from liability in the event that you damage property or other vehicles Personal accident protection: will cover medical costs for yourself and passengers (if applicable) should that you get into an accident Personal effects insurance: covers the cost of items that are stolen from the rental vehicle. This protection may be already included in your credit card in place or be part of your existing homeowners or auto insurance policies. Certain types of insurance have restrictions, however it is important to check together with your credit card issuer or insurance provider. Hidden fees and additional costs Car rental companies also have hidden fees that affect the cost of the rental. They build some of these charges into the price of renting. Some of them may appear on the statement several months after the rental period. Renting a car at an airport is more expensive than renting from an off-site service. This is because the airport has fees, such as an airport concession charge and an expense for customer facilities which the rental car provider passes on to the consumer. Some companies place an authorization block on the client’s credit or debit card. This charge, which can range between $150 and $500, gives the rental car company some security in the event that the renter damages or fails to return the car. The company can release the funds within a few days of receiving the rental car back in acceptable in good condition. A lot of companies charge a cancellation charge to renters who cancel their reservations less than 24 hours before the rental. If the renter made payment by advance, the company will refund the amount less the cancellation fee. Renters who cause damage to the exterior or interior of the vehicle must pay for the repairs . Unwary renters may end in paying for damage done through previous motorists. Make sure you thoroughly examine the vehicle prior to driving it off the lot and take photos of any visible damage and alert the employee. The majority of rental agencies charge a daily fee to add additional drivers in the rental agreement. The amount is determined by the state and rental agency. Modifying the terms of the rental agreement through a modification or extension could also incur an additional cost. The cost you pay may differ, and you may pay a higher daily rate. Although knowing about these hidden fees helps renters understand why the total rental cost is higher than the rental advertised price There is typically nothing that can be done to prevent these charges. The final cost of renting a costs for cars vary based on the rental agency, car type location, car type and the an individual’s age. You’ll also find that some locations are more expensive than other markets. There are ways to cut costs, like shopping around, booking early and skipping the extras. Make sure you read the rental contract’s fine print to avoid having to pay any unanticipated costs. Learn more
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Written by Auto Loans Reporter
Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers with the ins and outs of securely using loans to buy an automobile.
Edited by Rhys Subitch Edited by Auto loans editor
Rhys has been writing and editing for Bankrate from late 2021. They are committed to helping readers gain the confidence to control their finances by providing precise, well-studied information that breaks down otherwise complex subjects into bite-sized pieces.
Auto loans editor
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