Travel is expensive. If you want to enjoy the holiday of your dreams, it's important to look for good value wherever you can.
In this guide, we'll analyze the best times to book a rental vehicle and save, allowing you to get a better deal on your next hire car.
Key takeaways
- Rental car prices change significantly depending on when you make a booking. The cheapest window for booking a rental car is generally between 2 and 31 days from the pick-up date.
- Last-minute bookings are generally a bit more expensive than bookings made in this window, but they can be cheaper than booking well in advance. This is because vehicle availability can be more limited, and rental car companies are less certain about supply.
- Making a booking during the low season can also be a great way to save money on your car rental.
What's the best time to book a rental car to save on your trip?
According to research from EconomyBookings.com, the optimal time to book a rental car is between 2 and 31 days from the pick-up date. In general, rental car prices are slightly lower at this time than they are 0-1 days before vehicle pick-up.
Booking a car more than 31 days out from the pick-up date can cause you to pay substantially more. In this window, prices can be 10-25% higher than prices for last-minute bookings.
It's also worth noting that it's often possible to reserve a car rental with no cancellation fee. So, if you find a deal you like, you can place a reservation and cancel it if you find a better deal.
Should you wait until the last minute to book a rental car?
Based on EconomyBookings.com's research, last-minute car rentals 0-1 days out from pick-up aren't as cheap as bookings in the 2-31 day window. So, there's no need to leave things to the last minute in the hopes of saving on your rental. Booking whenever works for you in the 2-31 day window will offer perfectly good value.
How does seasonality affect the price of car rentals?
Analysis of 121,000 bookings on Carla found the following seasonal insights in Spain, Italy, Australia and the United States:
Unsurprisingly, winter is the cheapest time to book a rental car in all these destinations. However, the amount that you can save by booking a car in the low season varies significantly between them.
While summer is the peak season for many top travel destinations, the difference between summer and winter visitors contributes to the disparity in car rental prices.
Summer months account for a higher proportion of Italian tourism than in the United States. So, the seasonal difference in car rental prices is smaller in the US than in Italy.
When should I pick up and drop off my rental car?
Adjusting the time of day you pick up and drop off your rental car often won't have much effect on the price of your rental, assuming you're comparing 24-hour intervals. Some car rental companies might offer after-hours services for an added fee.
If you need to drop off your vehicle an hour or two after the time you picked it up, you might find you're charged for an entire new day. Consequently, you may incur additional costs if you return your vehicle late.
Many car rental companies will begin charging an hourly rate for late returns after around 30-60 minutes. Others offer longer "grace periods", but in general, it's worth doing your absolute best to return your vehicle on time.
Tips to save on car rental
Here are a few more things to keep in mind when trying to save on your car rental:
- Fuel policies: Understand your refueling policy. You can pre-pay for a tank of fuel, but this will usually cost more money than refilling before returning your car.
- Avoid multiple drivers: Having multiple drivers listed on your rental agreement can add a substantial amount to your rental car costs. Whenever possible, only have one driver listed on your agreement.
- Mileage fees: Your rental agreement may stipulate a specific number of miles you can drive before incurring additional costs. Check this with your car rental provider and be sure to stick to your limits.
For more information, check out our complete guide to the top car rental tips.
When should I purchase car rental insurance?
Another area where you can avoid running up costs is car rental insurance. Without taking the right approach, you could find yourself paying a substantial amount for subpar insurance.
You should purchase car rental insurance well before you arrive at the rental desk. Many rental companies rely on customers not having properly considered their options ahead of time, and then pressure you into buying an expensive policy that doesn't offer high-quality cover.
Strongly consider the value offered by external providers like RentalCover well before you get to the car rental counter. Our cover is 50% cheaper than what the rental companies offer.†
We also cover items commonly excluded from their coverage, including windscreens, underbody damage, loss-of-use and more. And, with our policies, there's nothing for you to pay in the event of a claim.
Get your instant quote today and find out how we can help you enjoy your dream holiday with more peace of mind.
Frequently asked questions
Why does timing affect the price of rental cars?
Timing affects the price of rental cars in different ways. You'll pay a different amount for a rental car depending on how far in advance you book. Booking more than 31 days in advance can be more expensive than booking closer to your rental dates because car availability and demand are less predictable for suppliers.
Last-minute bookings can be more affordable because rental companies know exactly what's available, and will drop prices to maximize stock usage. Bookings during peak travel periods are more expensive due to higher demand.
Is it worth renting a car from a non-airport location?
According to analysis from Carla, renting a car from non-airport locations is sometimes not worth the added effort. In countries like New Zealand, you can save up to $21 a day by picking up your car from a non-airport branch.
However, in Italy and Germany, there's just a $2 difference between airport and non-airport locations. In France, the world's most visited country, there's no difference at all.
Are long-term or short-term car rentals cheaper?
Yes, longer-term rentals are generally cheaper than short-term ones. According to Carla data, a 1-week rental period yields 50% savings compared to a 1-day rental.
Pricing actually rises slightly for 8- to 13-day rentals. A 2-week rental period is 57% cheaper than a 1-day period.
What are some common mistakes when booking rental vehicles?
- Failing to compare prices and properly consider all available options for insurance, and being pressured into making a low-value purchase at the car rental counter.
- Failing to properly record damage that was present on your rental vehicle when you picked it up.
- Returning your vehicle late and incurring financial penalties as a result.
Are smaller rental cars cheaper?
Yes, analysis from Carla has found that smaller vehicle categories, including minis and compacts, are generally cheaper than categories like full-size SUVs.
Is there a best day of the week to book a rental car?
Yes. Midweek car rental bookings tend to be cheaper than those made on weekends.