The fastest way to lower your car rental cost is to compare prices across multiple companies before you book

Car rental prices change based on the location, the dates you need the car, the type of vehicle, and which company you book through. The same car on the same dates can cost $30 a day through one company and $60 through another. Checking at least three rental companies — and using a price comparison site to see several at once — takes 10 minutes and often saves $100 or more on a week-long rental.

The major rental chains in the United States are Enterprise, Hertz, Budget, Avis, and National. Regional companies like Fox Rent A Car and Thrifty sometimes undercut the big names, especially at smaller airports. Costco Travel, AAA, and some credit card companies also negotiate discounted rates with rental companies, so if you belong to any of those, check their travel sections before you book elsewhere.

Booking directly through a rental company's website often costs less than booking through a third-party site, because the third-party site takes a commission. However, third-party sites like Kayak, Autoslash, and Priceline let you see many companies at once, which saves time. The strategy that works best is to use a comparison site to find the lowest price, then visit that company's own website to confirm the rate before you complete the booking.

Key Takeaways

  • Rental prices vary widely by company and booking method, so comparing at least three options before you book typically saves $100 or more per week.
  • Booking through a rental company's own website usually costs less than booking through a third-party site, because third-party sites charge commissions.
  • If you belong to Costco, AAA, or hold certain credit cards, check their travel sections for negotiated discounts before you search elsewhere.
  • Picking up and dropping off at an airport location costs more than a downtown or off-airport location, sometimes by $10 to $20 per day.
  • Declining the rental company's insurance and fuel options and using your own coverage or paying cash for fuel can cut your total cost by 20 to 40 percent.

How location and timing affect what you pay

Airport rental locations charge a facility fee on top of the base rental rate. This fee varies by airport but typically adds $5 to $15 per day to your total cost. If you are renting for a week, that is $35 to $105 in extra charges just for picking up at the airport. Picking up at a downtown or off-airport location — even if you have to take a taxi or rideshare to get there — often costs less overall.

The day of the week and the season affect price. Rentals are usually cheaper on weekdays than weekends, and cheaper in winter than summer. If your travel dates are flexible, shifting your rental by a day or two can sometimes cut the price in half. Booking further in advance — at least two weeks out — generally costs less than booking a few days before you need the car, though this is not always true during slow seasons.

The type of vehicle you choose also matters. Economy and compact cars are almost always cheaper than midsize or full-size vehicles. If you do not need the extra space, choosing the smallest car available can save $10 to $20 per day. Some rental companies also offer hybrid or electric vehicles at a lower rate than gas-powered cars of the same size, especially in California and other states with environmental incentives.

What to decline to cut your rental bill

Rental companies make significant profit from insurance, fuel plans, and add-ons. The collision damage waiver (CDW) — which covers damage to the rental car — costs $15 to $30 per day. If you already have car insurance through your own policy or through your credit card, that coverage usually extends to rental cars, and you do not need to buy the rental company's insurance. Before you rent, call your insurance company or credit card issuer and ask whether rental cars are covered. If they are, decline the CDW at the rental counter.

Fuel plans — where you prepay for a full tank at a discounted rate — sound cheaper but usually are not. The rental company charges $4 to $5 per gallon, while gas stations charge $3 to $4. If you return the car with fuel still in the tank, you lose that money. Instead, fill the tank yourself at a gas station near the rental location before you return the car. This costs less and gives you control over how much fuel you actually use.

Decline roadside information, GPS rental, and additional driver fees unless you have a specific reason to buy them. Your phone has a free GPS app. Roadside information is usually covered by your auto insurance or credit card. An additional driver fee — typically $10 to $15 per day — applies only if someone else will be the primary driver; if you are the only driver, you do not need to pay it.

Using membership discounts and corporate codes

Costco Travel negotiates rates with major rental companies and often offers 30 to 40 percent discounts compared to the standard rate. You do not need to be a Costco member to book through Costco Travel, but you do need a Costco membership to use the discount. AAA members receive discounts of 10 to 25 percent at most major rental companies. Both discounts are usually applied automatically when you book through their websites, so you do not have to enter a code.

Some credit cards, particularly American Express and certain premium cards, offer rental car discounts through their travel partners. Check your card's benefits guide or call the number on the back of your card to ask whether rental discounts are included. Corporate codes — which employers sometimes negotiate with rental companies for employees — can also lower the rate. If your employer offers this benefit, you will usually find the code in your employee handbook or benefits portal.

Government employees, military members, and some other groups also receive discounts. The National Association of Insurance Commissioners (NAIC) and some state governments have negotiated rates with rental companies. If you belong to any professional organization or group, ask whether they have a rental car discount program before you book.

What happens at the rental counter and how to avoid surprise charges

When you arrive to pick up the car, the rental agent will ask you to review the rental agreement and confirm your insurance choices. Read this document carefully. It lists the base rate, all fees, the insurance you declined or accepted, and the fuel plan. If anything does not match what you saw online, ask the agent to explain it before you sign. Some rental companies add undisclosed fees at the counter, and you have the right to ask about any charge you do not recognize.

The agent will also inspect the car with you and note any existing damage on the contract. Walk around the car and point out any scratches, dents, or interior damage you see. Take photos with your phone if the rental company allows it. This protects you from being charged for damage that existed before you rented the car. Do the same inspection when you return the car, and ask the agent to confirm in writing that the car is being returned in the condition noted on the pickup form.

Some rental companies charge a "loss of use" fee if the car is damaged and cannot be rented while it is being repaired. This fee can be $30 to $50 per day. If you decline the CDW and cause damage, you may be responsible for this fee. This is one reason to verify that your own insurance or credit card covers rental cars before you decline the company's insurance.

Alternatives to traditional car rental companies

Peer-to-peer car rental services like Turo let you rent cars from individuals rather than companies. Prices vary widely, but for short rentals in some cities, Turo can be cheaper than traditional rental companies. You pay through the Turo app, and the car owner's insurance covers the rental. The downside is that you have less recourse if something goes wrong, and availability depends on what cars are listed in your area on your dates.

Hourly car rental services like Zipcar and Car2Go are cheaper than daily rentals if you only need a car for a few hours. Hourly rates typically run $8 to $15 per hour, which works out to $64 to $120 per day if you use the car for eight hours. For a full day or longer, a traditional rental is usually cheaper. These services are available in major cities but not in rural areas.

Ride-sharing services like Uber and Lyft are sometimes cheaper than renting a car, especially if you do not plan to drive much or if parking is expensive in your destination. Calculate the cost of multiple rides to your destinations and compare it to the rental cost plus parking and gas before you decide. For a week-long trip where you plan to drive daily, a rental car is usually cheaper than ride-sharing.

Frequently Asked Questions

Can I negotiate the price at the rental counter?

Rental agents have limited ability to lower the rate you booked online. If you find a lower price from a competitor while you are at the counter, show the agent the price and ask if they can match it. Some companies will; many will not. The time to negotiate is before you arrive, by comparing prices across multiple companies.

What if I return the car late?

Late return fees vary by company but typically run $25 to $75 per hour or per day, depending on how late you are. Some companies charge a full day's rental if you return the car even one hour late. Call the rental location as soon as you realize you will be late and ask what the fee will be. In some cases, extending the rental for an extra day costs less than paying a late fee.

Is it cheaper to rent for seven days or to rent for five days and return the car for two days?

Weekly rates are usually cheaper per day than daily rates, so a seven-day rental typically costs less than five separate one-day rentals. However, if you will not use the car for two of those days, you are paying for days you do not need. Calculate both options — the weekly rate for seven days versus the daily rate for five days — and choose whichever costs less.

Do I have to buy a tank of gas when I pick up the car?

No. The rental company will offer to sell you a prepaid tank, but you can decline and return the car with any amount of fuel in it. If you return it empty, you will be charged the company's per-gallon rate, which is higher than gas station prices. The cheapest option is to fill the tank yourself at a gas station near the rental location before you return the car.

What if the rental company charges me for damage I did not cause?

Dispute the charge in writing within 30 days. Include photos you took at pickup and return, the rental agreement, and any other evidence that the damage existed before you rented the car. Send this to the rental company's customer service department. If they do not respond or refuse to remove the charge, you can dispute it with your credit card company if you paid by card.