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5 min read Published on October 19, 2022.

Written by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers to navigate the ways and pitfalls of taking out loans to purchase a car.

Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate from late 2021. They are passionate about helping readers gain the confidence to take control of their finances through providing clear, well-researched information that breaks down otherwise complicated topics into bite-sized pieces.

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At Bankrate we are committed to helping you make better financial decisions. While we are committed to strict ethical standards ,

this post may contain the mention of products made by our partners. Here’s a brief explanation of how we earn our money .

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Established in 1976, Bankrate has a long experience of helping customers make informed financial decisions.

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who ensure everything we publish ensures that everything we publish is accurate, objective and trustworthy. Our loans journalists and editors focus on the points consumers care about most — the various types of loans available, the best rates, the most reliable lenders, how to repay debt, and more — so you’ll be able to feel secure when investing your money.

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If you’re on holiday and desire the freedom and convenience of driving around or need a car while you’re at work it’s likely that you’ll need to rent a car at some time. There were 1.8 million cars that were in rental service in 2021 . Prices vary based on the type of car you rent, which rental car service you choose to use and the location where you lease the vehicle. Understanding the factors that affect the price will help you plan your expense. Typical cost of a car rental to rent a vehicle varies dependent on the location, type of car and rental company. However, the cost average at mid-October 2022 was around $81 per day . To calculate your expected cost, reach out to Hertz, Enterprise, Avis or any other rental firms you’re thinking of using to prepare for the expense. The factors that affect rental car prices Several aspects can affect the cost of renting a car — as well as outside of your control. Save money where you can by understanding the factors that affect price. Car type When choosing an automobile rental, the first question most renters want to know is the amount of space they require. Car rental companies classify their vehicles according to their size. Economy cars are generally the cheapest and smallest rental companies offer. They can accommodate one or two persons, as well as their luggage. The compact or intermediate models offer more space than economy cars generally through more space in the trunk. Intermediate cars can hold up to four people with a small amount of luggage. The standard vehicles that have full-sized back seats are able to accommodate four adults. They also provide plenty of trunk space, which makes them a great option for families with plenty of luggage to bring along. Luxury vehicles are premium vehicles that range from sporty convertibles, to big SUVs, and vans. In the majority of cases the rental cost per day is based on the size and type of the car or truck. However, sometimes rental firms offer discounts for vehicles belonging to certain categories and, in particular, when they have plenty of vehicles of them in stock. For instance, if the business has a restricted number of economy cars available to rent for a certain weekend, they could offer discounts on standard vehicles. Here are the cheapest daily rates for different types of vehicles, as per Kayak. Car type

Approximate capacity

Least expensive rate per day

Economy

2 adults, 2 bags

$14

Compact

2 bags, 4 adults

$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 as of October 2022. Location As with other goods as well, the prices vary in accordance with demand and supply. A majority of people can find cheaper car rental rates near the center of the city rather than the airport. Prices for rental vary across various regions across the country. Highly trafficked tourist areas might have lower rental rates than other areas due to the increasing competition. But they may also have higher fees during popular seasons when the demand is extremely high. The 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 in October 20, 2022. Age of the driver The rental’s age is a major factor in the price. If the renter is younger, greater cost, since young drivers increase risks to rental businesses. A lot of rental companies don’t even rent to those less than twenty years of age. Rental companies may charge additional fees for young renters. Based on the state of residence, these fees can be anywhere from $40-$65 per day. Consider these higher prices when determining who will drive your rental. Certain states permit charges for drivers who fall within certain age ranges. For instance hiring from Enterprise in Michigan comes with an additional $40 daily charge for drivers aged 18 to 20 years old. The fee is $19 per day for those between 21 and 24. Renters younger than New York can expect to be charged an additional $64.50 due to their age. However, not every rental firm has these charges. Be aware of both the cost per day and any additional charges when deciding the rental provider. What can you do to get the most price on your rental car Although a rental car’s price is determined by a variety of elements but there are a few options you can take to get a little extra money in your pocket. Comparison shop . You can save money on your next car rental by looking around. Prices can vary by rental agency, so doing a bit of research could get you a much better deal. Comparison sites like Priceline, Expedia, AutoSlash and Kayak make it easier to compare quotes for rental cars. Visit the rental agency’s websites to ensure you’re getting the most competitive price on the car. Refill the tank. Always stop to top up the gas tank before returning the rental vehicle to the agency. You’ll avoid additional fees for refilling. Book early The ability to reserve your car ahead of time will allow you to choose the right vehicle, skip long lines, and possibly save money. This is especially crucial for those planning to travel extensively during a holiday. Don’t add any additional items before receiving the keys to your rental, you will likely be provided with a variety of add-ons. The options could include GPS and toll plan access to XM radio or even car seats. Do not use these features if you can to save money. This is a costly extra-cost option that is usually offered when you book or collect the car. It can add an additional up to $15-30 per day to your bill however, it may save you thousands of dollars if the car is involved in an accident, or the car is stolen. The four types of common insurance for rental cars include: Loss-and-damage waiver (LDW) or collision damage waiver (CDW): provides coverage if the car is damaged or stolen Supplemental liability protection: protects you from liability if you cause damage to property or vehicles. Personal accident coverage: covers medical expenses for you and your passengers (if appropriate) when that you are involved in an accident. Personal effects coverage: pays the cost of items that are taken from the car rental These protections may already be or are part of your current homeowners or auto insurance policy. Some have limitations, though it is important to confirm how they work in conjunction with the credit card issuer or insurance company. Hidden fees and additional costs Car rental companies also charge hidden fees that affect the cost of the rental. They incorporate some of these charges into the cost of renting. Others may appear on statements for several months following the rental period. A car rental at the airport will cost more than renting from an off-site location. This is due to the fact that the airport is charged fees such as an airport concession fee and a customer facility charge that the rental car company transfers to the customer. Certain companies put an authorization hold on the client’s credit or debit card. This charge, which can range from $150 to $500 gives the rental car company an insurance policy in case the customer is damaged or does not return the car. The company can release the funds within a few days of getting the car returned in a good condition. Many businesses charge a cancellation fee for renters who cancel their reservations less than 24 hours before the rental. If the renter has paid prior to the rental, then the business would refund the payment minus the cancellation cost. Renters who cause damage to the exterior or interior of their vehicle are required to cover the repair costs . Renters who aren’t careful could end up paying for damage caused through previous motorists. Make sure you thoroughly examine the vehicle prior to driving it off the lot and take photos of any apparent damage and inform to an employee. The majority of rental agencies charge a daily cost to add drivers to the rental contract. The cost is determined by the state and rental agency. Modifying the conditions of the rental agreement through a modification or extension may also come at an added cost. The cost you pay can vary and you could be charged a higher daily rate. Although being aware of these hidden charges can help renters realize why total rental costs are higher than the advertised rental price There is typically nothing that can be done to avoid these charges. The bottom line Rental car costs vary by rental agency, car type location, car type and the how old the chauffeur is. There are also instances when marketplaces are more expensive than other markets. But there are methods to lower your costs by buying around, making bookings in advance and avoiding the extras. Make sure you read the rental contract’s fine print to avoid having to pay any unexpected costs. Learn more

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Authored by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers to navigate the ins and outs of securely taking out loans to purchase a car.

Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since late 2021. They are dedicated to helping their readers feel confident to manage their finances by providing clear, well-researched information that breaks down complicated topics into manageable bites.

Auto loans editor

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