Careful shopping can significantly lower the cost of renting a car. The tips below will help you choose a vehicle that fits your needs without breaking your budget.
by Gary Foreman
Dear Dollar Stretcher,
My husband and I are visiting relatives for the holidays and will probably need to rent a car. What are some ways to cut rental costs?
Dianne
Dianne’s question is a common one. Whether you’re traveling for the holidays, a vacation, or work, renting a car can be expensive unless you plan and compare carefully. Below are practical steps to help you find a better rate and avoid unexpected charges.
Basic Car Rental Requirements
Most rental companies require renters to be at least 25 years old and to present a valid driver’s license and a credit card. They may also review your driving record. Serious infractions, such as DUIs or multiple recent accidents or citations, can disqualify you from renting.
Understand Rental Car Classifications
Decide how large a vehicle you actually need, and don’t rely solely on class labels like “mid-size” or “compact.” These categories vary across companies. Check the rental company’s website or ask an agent which specific models are included in a given class and make sure you’d be comfortable with any of those models. In almost all cases, companies do not guarantee a specific make and model.
Save on Taxes and Surcharges
Taxes and fees can add substantially to the base rental rate. Airport locations frequently impose surcharges that are passed to customers, so renting off-airport can be considerably cheaper. Use an online map to find nearby off-airport locations; a short taxi or rideshare trip to pick up the car may yield a significant saving.
If you pick up and drop off at different locations you might face a one-way or drop-off fee. Ask about additional driver fees and any charges for returning the car early or failing to show up. Always read the rental contract carefully—written terms in the agreement override any verbal statements from agents.
Keep Comparing Rates Until You Travel
Rental prices fluctuate with supply and demand. It’s fine to reserve a car early and continue checking rates; if you find a better deal, cancel the first reservation and rebook. Monitoring rates up to the day of travel can save money, as companies sometimes lower prices to fill available inventory.
Steps to Find the Best Rate
- Begin with the rental companies’ own websites to get a baseline for prices and available vehicle classes.
- Use travel and comparison sites to scan multiple companies quickly and spot lower offers.
- Call local dealerships — some rent vehicles at competitive rates and may have different availability than the major agencies.
- Contact rental companies directly with the best rate you find and ask if they can match or beat it.
Claim Every Discount You Qualify For
Don’t overlook discounts tied to memberships: AAA, AARP, unions, professional organizations, wholesale clubs, and employer programs often offer reduced rates. Sign up for free loyalty programs from rental companies — members frequently receive special offers, upgrades, or discounted rates. If you plan to use coupons or promotional codes, read the fine print to confirm availability at your chosen location and dates.
Avoid Paying for Unnecessary Extras
Rental agents will offer optional coverages such as collision damage waivers (CDW), supplemental liability insurance, and protection for personal items. Check your own auto or homeowner’s insurance and the policies attached to your credit cards — many already provide adequate coverage for rental cars when you use the card to pay for the rental. Call your insurer or credit card company ahead of time to confirm coverage and avoid purchasing redundant insurance.
Also ask about mileage limits. Some companies charge for every mile over a daily allowance, which can add up quickly if you intend to drive long distances.
Inspect the Vehicle and Fuel Policy
When you arrive to pick up the car, the company should upgrade you at no extra charge if your reserved class is unavailable. Before leaving the lot, carefully inspect the vehicle and ensure any scratches, dents, or other damage are documented and initialed by the rental agent. Photograph the car as additional proof if you prefer.
Understand the fuel policy. If the company charges a flat refueling fee, you may be better off returning the vehicle with any amount of fuel and not topping up, since prepay refuels are often more expensive than local gas prices. If the rental requires a full tank on return, refill the car yourself — it’s usually cheaper than the rental company’s refueling rate.
When returning the car, request an inspection and a signed receipt showing the vehicle was returned without new damage and with the agreed fuel level to avoid later disputes.
In Summary
Renting a car is a convenient option, but costs can vary widely. By understanding requirements, comparing prices, using discounts, confirming insurance coverage, and inspecting the vehicle, you can reduce the total cost and avoid unpleasant surprises. Careful preparation and ongoing price checks can make a meaningful difference in what you pay for a rental.
Reviewed October 2024
About the Author
Gary Foreman is the founder and former editor of The Dollar Stretcher. His work has appeared on business and personal finance platforms, and he has advised readers on practical ways to stretch their budgets and save money.
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