If you’ve been considering renting a car recently, you may have noticed that prices are much higher than they were before the pandemic. In fact, rental car prices have risen by almost 50% between July 2019 and July 2022. While prices have slightly decreased in recent months, they are still significantly higher than pre-pandemic levels.
So, if you’re planning to rent a car for travel or any other purposes in 2023, be prepared to pay more than you would have in the past. But don’t worry! We’ve got some tips to help you save money on your car rental.
Average Daily Car Rental Costs by Company
Before we dive into the money-saving tips, let’s take a look at the average daily car rental costs from several major companies at four airports: Atlanta Hartsfield-Jackson, New York City JFK, Los Angeles International, and Chicago O’Hare[^1^].
What Factors Affect Car Rental Prices?
When it comes to renting a car, several factors can influence the cost. Here are some key factors to consider:
Type of Rental Car
The type of car you rent, including its size and luxury features, can significantly impact the cost. For example, upgrading from a standard to a full-size car can result in a significant price increase. And if you’re looking to splurge, renting a special or luxury car will come with an even higher price tag[^1^].
Rental Car Pickup Location
The location where you pick up your rental car can also affect the cost. Rental prices may vary depending on the demand and popularity of the location. For example, renting a car at New York JFK airport tends to be more expensive compared to the other three airports mentioned earlier. Additionally, renting from an airport location may be pricier than renting from an off-airport location. If possible, consider alternative transportation options to save money[^1^].
How Far in Advance You Book
Booking your rental car well in advance can help you secure a better rate. Prices tend to increase as the rental date approaches, especially if you book last minute. So, plan ahead and book your car as early as possible to get the best deal[^1^].
Age of the Driver
Your age can also impact the rental car cost. Younger drivers are often considered riskier to rental car companies and may be charged additional fees or face age restrictions. Make sure to check the age requirements and fees of the rental company you choose[^1^].
Tips to Pay Less for a Rental Car
Now that you know what factors affect car rental prices, here are some money-saving tips to help you get the best deal:
1. Check Prices Periodically and Re-book if Prices Drop
Car rental rates tend to fluctuate over time. To get a better rate, book your car in advance with a reservation that allows for cancellation without penalties. Then, periodically check the rates leading up to your travel date. If you see a drop in prices, re-book your car at the lower rate. Just remember to cancel your original booking to avoid any cancellation fees[^1^].
2. Utilize Rental Car Loyalty Programs
If you frequently rent from the same car rental brand, consider enrolling in their loyalty program. These programs often offer benefits such as free rental days and upgrades. Take advantage of these perks to save money on future rentals[^1^].
3. Decline Optional Rental Car Insurance
Most rental car companies offer optional insurance coverage that can significantly increase the cost of your rental. However, before purchasing this coverage, check if your own car insurance policy covers rental cars. In many cases, your existing policy provides adequate coverage, allowing you to decline the rental company’s expensive insurance options[^1^].
4. Refuel the Car Before Returning
When returning your rental car, choose to refill the tank yourself instead of pre-paying for gas. Pre-paying for gas often results in overpaying, as you are charged for a full tank regardless of how much fuel you used. Save money by filling up the tank at a nearby gas station before returning the car[^1^].
Rental Car Alternatives
If you find that the cost of renting a car is still too high, consider these alternatives:
1. Taxi or Rideshare
Taxis and rideshare services such as Uber and Lyft often provide competitive rates, especially in major airports. Research ahead of time to ensure that rideshare services are allowed at your destination airport. Depending on your travel needs, using a taxi or rideshare service may be more cost-effective than renting a car[^1^].
2. Hotel Shuttle
Check if your hotel offers a shuttle service to and from the airport. Many hotels provide complimentary shuttle services, which can save you money on transportation expenses. Keep in mind that these shuttles may have limited operating hours[^1^].
3. Public Transportation
If you’re traveling to a metropolitan area, consider using public transportation. Buses and trains often serve airports, providing an affordable way to get around. While it may require some planning and scheduling, using public transportation can significantly reduce your ground transportation costs[^1^].
Conclusion
Renting a car in 2023 may be more expensive than it was before the pandemic, but with these money-saving tips, you can still find ways to save. Be mindful of the factors that influence car rental prices, book in advance, and consider alternative transportation options when possible. By doing so, you’ll be able to enjoy your trip without breaking the bank.
For more financial tips and advice, visit Personal Finances Blog. Happy travels!
Frequently Asked Questions (FAQs)
Q: Why are rental cars so expensive right now?
With both business and personal travel on the rise post-pandemic, the demand for rental cars has exceeded the available supply. Additionally, automotive manufacturing supply chain delays have further limited the number of cars rental companies can purchase[^1^].
Q: Do I need car rental insurance?
Car insurance is mandatory in the U.S., even when driving a rental car. Check with your insurance company to see if your policy covers rental cars. In most cases, your existing policy provides coverage for rental cars, eliminating the need for additional insurance[^1^].
Q: When will rental car prices go back to normal?
While rental car prices have slightly decreased in 2023 compared to 2022, industry experts predict that prices will remain high for the foreseeable future. It may take some time before rental car prices return to pre-pandemic levels[^1^].
[^1^]: *Source: Rentalcars.com search for intermediate-size rental cars. The search was conducted on March 23, 2023, for a rental period to begin on April 20, 2023, and end on April 21, 2023. These costs are provided for comparison purposes only.