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5 minutes read. Published October 19, 2022
Authored by Rebecca Betterton Written by Auto Loans Reporter
Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers to navigate the ins and outs of securely borrowing money to purchase an automobile.
Editor: Rhys Subitch Edited by Auto loans editor
Rhys has been writing and editing for Bankrate since late 2021. They are dedicated to helping readers gain confidence to take control of their finances by providing clear, well-researched facts that break down complicated topics into bite-sized pieces.
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Whether you’re going on vacation and want the convenience and freedom of driving around or need a car while yours is in the shop most likely, you’ll hire a vehicle at some moment in the future. The number of rental cars was 1.8 million cars that were in rental service in 2021 . Prices vary based on the type of vehicle you hire, the rental car firm you select and where you rent the car. Understanding the factors that impact the cost can help you budget for the expense. Typical cost of a car rental The expected cost for renting a car differs according to factors such as location, car type , and rental company. The average price at mid-October 2022 was around $81 per day . To determine the cost you’re likely to pay you can contact Hertz, Enterprise, Avis or any other rental firms you’re considering to ensure you are prepared for the expense. Factors that impact rental car prices Several aspects influence the price of your rental — both in and outside your control. Reduce costs wherever you can by understanding what impacts cost. Car type when selecting the rental car, the first question most renters ask is how much space they require. Car rental companies classify their vehicles according to their size. Economy cars are usually the least expensive and the smallest rental firms offer. These vehicles have room for one or two persons, along with their luggage. Compact or intermediate cars provide more space than standard cars typically through additional space in the trunk. Intermediate cars can hold up to four persons with a small amount of luggage. The most basic vehicles with large back seats have room for four adults. They also have ample trunk space, which makes them a great option for families with a considerable amount of luggage to bring along. Luxury cars are high-end vehicles that include everything from sportsy convertibles to full-size SUVs and vans. In the majority of cases, the daily rental fee increases with the size and class of the vehicle or truck. However, sometimes rental firms offer discounts on certain types of vehicles particularly if they have plenty available. For example, if the company has a limited number of economy cars available to rent out for a specific weekend, they might offer a discounted rate on the standard cars. Here are the lowest prices for daily use for various types of vehicles, as per Kayak. Type of car
Approximate capacity
Least expensive rate per day
Economy
2 adults 2 bags
$14
Compact
2 bags, 4 adults
$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 as of October 2022. Location As with other goods and services, prices change depending on demand and supply. A majority of people can find cheaper car rental prices in the middle of the city, instead of the airport. The rental rates also differ in different areas of the country. Highly trafficked tourist areas might have lower rental rates than other places due to the greater competition. They may also have more expensive rates during peak seasons when demand is very 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 rental’s age is a major factor in the price. If the renter is younger, greater the cost because young drivers increase risks to rental companies. Many rental companies do not rent to people less than 20 years old. Rental companies can charge additional charges for renters under the age of 20. According to the state the fees could vary from $40 to $65 per day. Be aware of these prices in determining the driver of your rental. Certain states permit fee for drivers of certain age groups. For example, hiring through Enterprise in Michigan comes with an additional $40 per day fee for drivers 18 to 20 years old, and $19 per day for drivers between 21 and 24. Renters who are younger in New York can expect to pay an additional $64.50 in order to cover their age. But not every rental agency will charge these costs. Consider both the daily cost and any additional charges when deciding the rental provider. How can you get the best bargain on your rental vehicle Although a rental car’s price is based on a number of factors however, there are a few things you can do to drive away with some extra cash in your pocket. Comparison shopping You can get a better deal on your next car rental by shopping around. Prices often vary by rental service, therefore a little legwork could land you a much better deal. Comparison websites like Priceline, Expedia, AutoSlash and Kayak allow you to compare rental car quotes. Visit the rental agency’s websites to ensure you’re getting the most competitive price on the vehicle. Make sure to fill the tank with fuel. Always stop to top up the tank of gas prior to returning your rental car to the rental company. You’ll avoid additional fees for refueling. Book early Making reservations prior to the time of your reservation will allow you to choose the best vehicle, skip long lines and potentially save cash. This is especially crucial if you intend to travel on a long holiday. Do not add ons prior to receiving keys to your rental, you will likely be offered several add-ons. The options could include GPS, toll plan, accessibility to XM radio, and 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 book or take the vehicle for pickup. It could add $15 to $30 per day, however it may save you thousands if you’re involved in an accident or your vehicle is stolen. The four common types of insurance policies for rental vehicles include: Loss and damage waiver (LDW) or collision damage waiver (CDW) offers protection if the car is damaged or stolen Supplemental liability protection: shields you from liability in case you damage property or other vehicles. Personal accident protection covers medical expenses for passengers and yourself (if necessary) when you are involved in an accident. Personal effects coverage: covers the cost of items that are taken from the car rental These protections may already be or are part of your current homeowners or auto insurance policy. Some have limitations, though you should check together with your credit card company or insurance company. Hidden fees and other charges Car rental companies also charge hidden fees that affect the cost of the rental. They incorporate some of these charges into the cost 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 at an off-site location. This is due to the fact that the airport charges fees like the airport concessions fee as well as an expense for customer facilities that the rental car firm passes on to the consumer. Certain companies place an authorisation hold onto the customer’s credit or debit card. This charge, which can range between $150 and $500, offers the rental car provider some security in the event that the renter damages or fails to return the vehicle. The company can release the funds within a couple of days after 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 paid prior to the rental, then the business will refund the amount less the cancellation cost. Renters who cause damage to the exterior or interior of the vehicle have to pay for the repairs . Renters who aren’t careful could end in paying for damage done from previous owners. Make sure you thoroughly examine the vehicle prior to driving it off the lot, take pictures of apparent damage and inform the employee. The majority of rental agencies have a fee per day to add drivers on the contract. The amount is determined by the state and rental agency. Changing the conditions of the rental agreement by altering or expanding it can also result in additional cost. The cost you pay may differ, and you could pay a higher daily rate. While knowing about these hidden fees will help renters comprehend why total rental fees cost more than the stated rental cost, there is usually little that can be done to reduce these charges. The final cost of renting a car costs vary by rental agency, car type location, car type and the how old the chauffeur is. It is also possible to find that certain locations are more expensive than other markets. There are ways to reduce your expenses, like searching around, making reservations in advance and avoiding additional charges. Check the fine print of your rental agreement to avoid any unanticipated costs. Find out more
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Authored by Auto Loans Reporter
Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers in navigating the details of using loans to buy an automobile.
Editor: 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 clear, well-researched information that break down complex topics into manageable bites.
Auto loans editor
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