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5 minutes read. Published October 19, 2022
Writen by Rebecca Betterton 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 borrowing money to purchase the car they want.
Edited by Rhys Subitch Edited by Auto loans editor
Rhys has been editing and writing for Bankrate from late 2021. They are passionate about helping readers gain confidence to take control of their finances with precise, well-researched and well-written information that breaks down otherwise complicated subjects into digestible pieces.
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If you’re to a vacation spot and would like the freedom and convenience of driving around or you need a car when yours is in the shop, chances are you’ll take a rental vehicle at some point. In 2021, there were 1.8 million cars that were in rental service in 2021 . Costs differ based on the type of car you rent, which rental car company you use and the location where you lease the car. Knowing how these variables influence the cost will allow you to budget for the cost. Cost of a typical car rental The expected cost for renting a car differs dependent on the location, type of car and the rental company. But the average cost for mid-October 2022 was $81 per day . To calculate your expected cost, reach out to Hertz, Enterprise, Avis or any other rental firms you’re thinking of using to prepare for the expense. Factors that influence rental car prices Several aspects influence the price of your rental — regardless of whether they’re within or outside your control. You can save money by understanding what impacts the price. Car type when selecting an automobile rental the first thing renters are asking is how much space they require. Car rental companies categorize their vehicles according to their size. The smallest cars are typically the least expensive and the smallest rental companies provide. These vehicles have room for one or two people, together with luggage. Intermediate or compact cars offer more space than the economy models, usually through extra room within the trunk. Intermediate cars can hold up to four people and a minimal quantity of baggage. Standard vehicles with full-size back seats can accommodate four adults. They also have plenty of trunk space making them a good choice for families that have lots of luggage. Luxury cars are high-end vehicles that include everything from sportsy convertibles to full-size SUVs and vans. Most of the time the rental cost per day is based on the size and class of the vehicle or truck. However, sometimes rental companies offer specials for vehicles belonging to certain categories and, in particular, when they have plenty of vehicles of them in stock. For instance, if a company has a limited amount of economy vehicles available to rent out for a specific weekend, they may offer discounts on standard vehicles. Here are the cheapest cost per day for various kinds of vehicles, according to Kayak. Type of car
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 in October 20, 2022. Location As with other goods or services, costs vary according to supply and demand. A lot of people get better car rental deals close to the heart of the city instead of the airport. The rental rates also differ in different regions of the country. Tourist areas that are heavily populated might have lower rental rates than other places due to the greater competition. They may also have higher rates during the peak season when demand is 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 in October 20, 2022. Age of the driver The renter’s age greatly influences the price. Younger drivers will pay more expensive cost, since younger drivers pose a higher risk to rental companies. Many rental companies do not rent to people younger than twenty years of age. Rental companies may charge additional fees for young renters. Depending on the state, these fees can vary from $40 to $65 per day. Consider these higher prices when determining the driver for your rental. Certain states have fees for drivers in certain age ranges. For instance renting through Enterprise in Michigan comes with an additional $40 daily fee for drivers 18 to 20 years old and $19 for daily drivers between 21 and 24 years old. Renters who are younger in New York can expect to be charged the additional $64.50 in order to cover their age. But not every rental agency has these charges. Take into consideration both the daily price as well as additional fees when you decide where to rent from. How can you get the best bargain on your rental vehicle Although a rental car’s price is determined by a variety of variables however, there are several things you can do to drive away with some extra cash in your pocket. Comparison shop . You can save money for your next rental car by shopping around. The prices vary from one rental agency, so doing a bit of research could get you a much better deal. Comparison sites like Priceline, Expedia, AutoSlash and Kayak help you find the best rental car rates. Check out the websites of the rental company to make sure you’re getting the most competitive price on the vehicle. Refill the tank. Always stop to top up the gas tank before returning the rental vehicle to the rental agency. You’ll avoid additional fees for fueling. Plan your reservation early. The ability to reserve your car in advance allows you to get the right vehicle, avoid long lines, and possibly save cash. This is especially important if you intend to travel extensively during a holiday. Don’t add any additional items before receiving keys to your rental, you will likely receive a number of additional options. Options may include a GPS, toll plan, the ability to access XM radio, or even car seats. Do not use these features if you are able to save money. is another costly add-on often offered when you reserve or collect the car. It can add an additional up to $15-30 per day to the bill however, it could save you thousands if the car is involved in an accident or the vehicle is stolen. The four common types of rental car insurance include: Loss-and-damage waiver (LDW) (also known as collision damage waiver (CDW): provides coverage in the event that your car is damaged or stolen Supplemental liability protection: protects you from liability in case you damage property or vehicles. Personal accident coverage: covers medical expenses for you and your passengers (if applicable) when you get into an accident Personal effects coverage: pays the cost of belongings taken from the car rental 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 you should confirm how they work together with your credit card provider or insurance providers. Hidden charges and other costs Car rental companies can also charge hidden costs that affect the cost of renting. They incorporate some of these charges into the price for the rental. Some of them may appear on the statement at least a few months after the rental time. Renting a car at the airport costs more than renting from an off-site service. The reason is that the airport charges fees like an airport concession charge and a customer facility charge which the rental car provider transfers to the customer. Some companies place an authorization block on the client’s credit or debit card. This charge, which can range from $150 to $500 gives the rental car company some security in the event that the renter has an accident or is not able to return the vehicle. The rental car company will release the money within a few days after getting the car returned in acceptable state. A lot of companies charge a cancellation fee for renters who cancel their reservations within 24 hours of the rental. If the renter paid in advance, the company will refund the deposit less the cancellation cost. Renters who cause damage to the interior or exterior of their vehicle are required to cover the repair costs . Inexperienced renters could end up paying for damage caused from previous owners. Be sure to thoroughly inspect the car prior to taking it off the property and take photos of any obvious damage and notify an employee. The majority of rental companies charge a daily fee to add additional drivers to the rental contract. The amount is determined by the rental agency and the state. Modifying the terms of the rental contract by altering or expanding it may also come at an added cost. The amount you’ll be charged for will vary, and you could be charged a higher daily rate. While knowing about these hidden costs can help renters realize why total rental fees cost more than the rental advertised price There is typically nothing that you can do to reduce them. The basic rental costs for cars vary based on the rental company, type of car, location and how old the chauffeur is. You’ll also find that some marketplaces are more expensive than other markets. There are ways to lower your costs such as buying around, making bookings early and skipping additional charges. Make sure you read the fine print of your rental agreement to avoid incurring additional charges that are not anticipated. Find out more
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Authored by Auto Loans Reporter
Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers to navigate the ways and pitfalls of borrowing money to purchase the car they want.
The edit was done by Rhys Subitch Edited by Auto loans editor
Rhys has been editing and writing for Bankrate since late 2021. They are passionate about helping readers gain the confidence to take control of their finances by providing precise, well-studied information that breaks down complicated subjects into bite-sized pieces.
Auto loans editor
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