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5 min read published on 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 details of borrowing money to purchase the car they want.
The edit was done by Rhys Subitch Edited by Auto loans editor
Rhys has been editing and writing for Bankrate since the end of 2021. They are passionate about helping readers gain the confidence to control their finances by providing concise, well-researched, and clear facts that break down otherwise complicated topics into bite-sized pieces.
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When you're away on vacation and want the convenience and freedom of driving around or require a vehicle while yours is in the shop, chances are you'll hire a vehicle at some moment in the future. There were 1.8 million rental cars in service in 2021 . Prices vary based on the kind of car you hire, the rental car firm you select and the location you choose to rent the vehicle. Understanding the factors that affect the price will help you budget for the cost. Cost of a typical car rental to rent a car varies dependent on the location, car type , and rental service. But the average cost in mid-October 2022 was about $81 per day . To estimate your estimated cost contact Hertz, Enterprise, Avis or any other rental company you're considering to best prepare for the cost. Factors that influence the cost of renting a car. Several factors influence the price of renting a car -- as well as outside of your control. Reduce costs wherever you can by understanding the factors that affect cost. Car type when selecting an automobile rental the first question that renters ask is how much space they will need. Car rental companies categorize their vehicles according to their size. Economy cars are usually the cheapest and smallest rental companies offer. These vehicles have room for two or three people as well as their luggage. Compact or intermediate cars provide more space than standard cars, usually through extra room in the trunk. Intermediate cars can hold up to four people and have a limited quantity of baggage. The standard vehicles that have full-sized back seats are able to accommodate four adults. They also offer plenty of trunk space, making them a good choice for families that have lots of luggage to carry. Luxury vehicles are premium vehicles that range from sporty convertibles to full-size SUVs and vans. In most cases the rental cost per day is based on the size and class of the vehicle or truck. However, some rental companies provide special deals on certain types of vehicles and, in particular, when they have plenty of vehicles in stock. For example, if the business has a restricted quantity of economy cars to rent during a particular weekend, they may offer a discounted rate on standard vehicles. Here are the cheapest prices for daily use for various types of vehicles, according to Kayak. Type of car
Approximate capacity
Least expensive rate per day
Economy
2 adults, 2 bags
$14
Compact
4 adults, 2 bags
$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 at the time of writing in October 20, 2022. Location As with other goods or services, costs change in accordance with demand and supply. A majority of people can find cheaper car rental prices close to the heart of the city rather than the airport. Prices for rental vary across various regions across the country. Areas that attract a lot of tourists may have lower rental fees than other places due to the increasing competition. But they may also have more expensive rates during peak seasons when the demand is high. 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 at the time of writing in October 2022. Age of the driver The renter's age greatly influences the price. If the renter is younger, more expensive the cost because younger drivers pose a higher risk to rental companies. Some rental companies do not rent to people younger than 20 years old. Renters may be charged extra fees for renters who are young. Depending on the state charges can vary from $40 to $65 per day. Consider these higher prices when determining the driver for your rental. Certain states permit fee for drivers of certain age brackets. For example leasing from Enterprise in Michigan comes with an additional $40 per day cost for drivers between 18 and 20 years old. The fee is $19 for daily drivers between 21 and 24. Renters younger than New York can expect to pay an additional $64.50 because of their age. But not every rental company will charge these costs. Consider both the daily cost and any additional charges when deciding where to rent from. What can you do to get the most price on your rental car The cost of a rental car is based on a number of factors, there are still some things you can do to get a little extra money in your pocket. Comparison shop You can save money when you rent your car by looking around. Prices can vary by rental agency, so a little legwork could land you a lower price. Comparison sites like Priceline, Expedia, AutoSlash and Kayak allow you to compare rental car quotes. Visit the websites of the rental agencies to make sure you're getting the most competitive price on the car. Make sure to fill the tank with fuel. Always stop to top up the gas tank before returning the rental vehicle to the agency. You'll avoid additional fees for refueling. Make reservations early. Booking your rental car prior to the time of your reservation will allow you to choose the best vehicle, avoid lengthy lines, and possibly save cash. This is especially crucial when you plan to travel around a major holiday. Don't add any additional items before receiving the keys to the rental, you'll likely be provided with a variety of add-ons. The options could include GPS or toll plan, accessibility to XM radio or even car seats. Avoid these options if are able to save money. This is a costly extra-cost option that is usually offered when you reserve or collect the car. It can add an additional $15 to $30 per day to the bill but may save you thousands if you're involved in an accident or your car is stolen. The four kinds of typical rental car insurance include: Loss and damage waiver (LDW) also known as collision damage waiver (CDW) offers protection in the event that your car is damaged or stolen. Additional liability protection: protects you from liability in case you damage property or other vehicles. Personal accident protection pays for medical expenses for passengers and yourself (if applicable) should that you are involved in an accident. Personal effects coverage: covers the cost of items that are stolen from the rental car The protections you have may already be or are part of your current homeowners or auto insurance policies. Certain types of insurance have restrictions, however you should verify how they interact together with your credit card company or insurance provider. Hidden fees and additional costs Car rental companies also have hidden charges that impact the cost of the rental. They build some of these fees into the cost for the rental. Others may appear on statements for several months following the rental period. A car rental at an airport is more expensive than renting through an off-site facility. This is due to the fact that the airport has fees, such as the airport concessions fee as well as the cost of a customer facility fee which the rental car provider passes on to the consumer. Certain companies put an authorization block on the customer's credit or debit card. This charge, which ranges between $150 and $500, offers the rental car provider some protection if the renter damages or fails to return the vehicle. The company releases the funds within a couple of days after receiving the rental car back in a good in good condition. A lot of companies charge a cancellation charge to renters who cancel their reservations less than 24 hours prior to the rental. If the renter paid prior to the rental, then the business will refund the deposit less the cancellation fee. Renters who damage the interior or exterior of the vehicle have to pay for the repairs . Unwary renters may end having to pay for damages caused through previous motorists. Thoroughly inspect the vehicle before leaving the lot Take pictures of the obvious damage and notify the employee. The majority of rental companies charge a daily fee to add additional drivers in the rental agreement. The cost is determined by the rental agency and state. The ability to change the conditions of the rental agreement by altering or expanding it may also come at additional cost. The amount you're charged can vary and you could pay more per day. However, knowing about these hidden costs helps renters understand why the total rental fees cost more than the rental advertised price There is typically nothing that you can do to avoid them. The bottom line Rental costs for cars vary based on the rental agency, car type location, car type and the age of the driver. There are also instances when locations are more expensive than other markets. There are ways to reduce your expenses by shopping around, booking in advance and avoiding additional charges. Make sure you read the fine print of your rental agreement to avoid additional charges that are not anticipated. Find out more
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Writen by Auto Loans Reporter
Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers in navigating the ways and pitfalls 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 passionate about helping readers feel confident to control their finances through providing clear, well-researched information that breaks down otherwise complex topics into manageable bites.
Auto loans editor
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