Updated June 17, 2024
What Affects How Much You Pay for a Rental Car
Aleksandrs Buraks
Head of Growth at DiscoverCars.com
Season
Probably the most important thing that affects how much you'll pay for a rental car in any given location is the season during which you travel. Basic economics tells us that prices are determined by supply and demand. So when demand is higher, as during the high tourist season, you can expect prices to be higher too. This follows just the same as with hotels and flights.
In most locations, the high season is during the summer. This is particularly true for the most popular tourist destinations in Europe (Portugal, Spain, Greece, and Italy). So you can expect that if you plan to travel during the summer to these places, you'll pay a higher price to rent a car.
In most locations, the high season is during the summer. This is particularly true for the most popular tourist destinations in Europe (Portugal, Spain, Greece, and Italy). So you can expect that if you plan to travel during the summer to these places, you'll pay a higher price to rent a car.
What Affects How Much You Pay for a Rental Car
By Aleksandrs Buraks | Updated June 17, 2024
Season
Probably the most important thing that affects how much you'll pay for a rental car in any given location is the season during which you travel. Basic economics tells us that prices are determined by supply and demand. So when demand is higher, as during the high tourist season, you can expect prices to be higher too. This follows just the same as with hotels and flights.
In most locations, the high season is during the summer. This is particularly true for the most popular tourist destinations in Europe (Portugal, Spain, Greece, and Italy). So you can expect that if you plan to travel during the summer to these places, you'll pay a higher price to rent a car.
In most locations, the high season is during the summer. This is particularly true for the most popular tourist destinations in Europe (Portugal, Spain, Greece, and Italy). So you can expect that if you plan to travel during the summer to these places, you'll pay a higher price to rent a car.
How far ahead you book
Just as with plane tickets, the price of rental cars changes based on when you book a car. Generally, the further ahead of time you book, the cheaper it will be.
Rental car companies like most businesses need to plan the utilization of their cars ahead of time.
Another reason for this is price discrimination. Most often, those booking at the last minute are simply willing to pay a higher price because they need the car more.
So what's the best time to book? As far ahead as you can within reason (many rental companies do not accept bookings more than six months ahead of time). And since you can always cancel and rebook your rental car (as long as it's at least 48 hours before pick-up) if the price happens to fall for some reason, there's nothing to lose by booking ahead.
Rental car companies like most businesses need to plan the utilization of their cars ahead of time.
Another reason for this is price discrimination. Most often, those booking at the last minute are simply willing to pay a higher price because they need the car more.
So what's the best time to book? As far ahead as you can within reason (many rental companies do not accept bookings more than six months ahead of time). And since you can always cancel and rebook your rental car (as long as it's at least 48 hours before pick-up) if the price happens to fall for some reason, there's nothing to lose by booking ahead.
Location, Location, Location
Location factors into rental car prices in two ways: the city you rent in and where exactly you pick up the car (e.g., at the airport).
Let's start with where in the world you will be renting. Rental car prices vary a lot from country to country and city to city. You may be surprised to learn that the prices in many of the most popular tourist destinations can actually be significantly lower than in other places. This is because the huge demand drives many companies to enter the market and, therefore, lots of competition. For example, rental cars in Lisbon, our most popular location, can be had for as little as €2 per day.
Other locations that aren't as popular may have only a few companies serving them and, therefore, higher prices. Finally, some locations that are harder to get cars to, like islands, also have significantly higher prices.
Now let's focus on where you pick up and drop off your rental car. This, surprisingly, can make a big difference in how much you pay. Most often, you will pay more to pick up your rental car at the airport than at a location near the airport.
Rental car companies pay a lot to have rental counters in airport terminals or in the parking lot of the airport. They then pass these costs on to customers either through an airport fee or indirectly in the rental rate. It is, of course, more convenient to pick up your car at the airport, though.
But if you are willing to take a little more time and take a shuttle from the airport to the rental car company's location nearby, you will likely be able to save a significant amount.
Occasionally, it may be cheaper to rent a car in the center of a city rather than at the airport. This is usually not true at larger airports that have a lot of rental companies located near them (not necessarily at it). Usually, only the largest companies have rental offices in cities and these tend to be more expensive.
At smaller airports, though, it may be cheaper to take a taxi or public transportation into the city and then pick up a car there to save on paying the airport fee. Keep in mind though that downtown locations are usually only open during normal business hours; this could be inconvenient if you have an early or late flight.
Let's start with where in the world you will be renting. Rental car prices vary a lot from country to country and city to city. You may be surprised to learn that the prices in many of the most popular tourist destinations can actually be significantly lower than in other places. This is because the huge demand drives many companies to enter the market and, therefore, lots of competition. For example, rental cars in Lisbon, our most popular location, can be had for as little as €2 per day.
Other locations that aren't as popular may have only a few companies serving them and, therefore, higher prices. Finally, some locations that are harder to get cars to, like islands, also have significantly higher prices.
Now let's focus on where you pick up and drop off your rental car. This, surprisingly, can make a big difference in how much you pay. Most often, you will pay more to pick up your rental car at the airport than at a location near the airport.
Rental car companies pay a lot to have rental counters in airport terminals or in the parking lot of the airport. They then pass these costs on to customers either through an airport fee or indirectly in the rental rate. It is, of course, more convenient to pick up your car at the airport, though.
But if you are willing to take a little more time and take a shuttle from the airport to the rental car company's location nearby, you will likely be able to save a significant amount.
Occasionally, it may be cheaper to rent a car in the center of a city rather than at the airport. This is usually not true at larger airports that have a lot of rental companies located near them (not necessarily at it). Usually, only the largest companies have rental offices in cities and these tend to be more expensive.
At smaller airports, though, it may be cheaper to take a taxi or public transportation into the city and then pick up a car there to save on paying the airport fee. Keep in mind though that downtown locations are usually only open during normal business hours; this could be inconvenient if you have an early or late flight.
One-way rentals
Renting a car in one city and dropping it off in another can be a great way to see all of a country or region without having to spend a day or more traveling back to the original city. Many companies offer one-way rentals for travelers that want to do this.
However, this almost always comes with an additional. The rental company will have to move the car back to the original city somehow, thus has to charge more. The fee can vary widely but mainly depends on the distance between the locations.
Very rarely, you may find one-way rentals that don't have this additional fee. Similar to repositioning cruises between seasons, sometimes there is a very popular route that you can travel in the opposite direction on and help the rental company relocate a car without having to pay the one-way fee. Again, this is rare, so don't count on it when planning.
However, this almost always comes with an additional. The rental company will have to move the car back to the original city somehow, thus has to charge more. The fee can vary widely but mainly depends on the distance between the locations.
Very rarely, you may find one-way rentals that don't have this additional fee. Similar to repositioning cruises between seasons, sometimes there is a very popular route that you can travel in the opposite direction on and help the rental company relocate a car without having to pay the one-way fee. Again, this is rare, so don't count on it when planning.
What you actually rent
Rental vehicles come in all types. How much one cost, like any other product or service, depends on what exactly it is. Just like a Mercedes costs more than a Honda to buy, expect to pay more to rent one.
The smallest, cheapest models of cars are of course the cheapest to rent. Prices tend to rise as the cars get larger.
You can, of course, expect to pay the most for premium cars, which usually you will be guaranteed to get the make and model advertised.
The smallest, cheapest models of cars are of course the cheapest to rent. Prices tend to rise as the cars get larger.
You can, of course, expect to pay the most for premium cars, which usually you will be guaranteed to get the make and model advertised.
Your age
Unfortunately, how old you happen to be can affect how much you pay to rent a car. Generally, drivers under 25 and over 75 must pay an extra fee for renting a car. This varies from country to country and from company to company, though.
Tip: If when searching for a car you enter the age you will be when you pick it up, then you will be shown the final price including any fees based on your age. This makes it easy to compare cars from different companies.
Tip: If when searching for a car you enter the age you will be when you pick it up, then you will be shown the final price including any fees based on your age. This makes it easy to compare cars from different companies.
Fuel
Many people have experienced the pain of returning their rental with less fuel than it had when picking it up and being charged an exorbitant amount for it.
The cheapest option is to replace the fuel that you use right before returning the car. Most often, the car will be handed over to you with a full tank of gas, and you simply will have to fill it up. Sometimes, though, there might not be a full tank and you will need to return it with the same amount it had to begin with (to the nearest line on the gauge).
Many rental companies also offer the option of purchasing a tank of gas upfront so that you can return the vehicle with close to an empty tank. This always costs more than filling up at a gas station, but some find it more convenient to not have to worry about that when returning to the airport or office.
The cheapest option is to replace the fuel that you use right before returning the car. Most often, the car will be handed over to you with a full tank of gas, and you simply will have to fill it up. Sometimes, though, there might not be a full tank and you will need to return it with the same amount it had to begin with (to the nearest line on the gauge).
Many rental companies also offer the option of purchasing a tank of gas upfront so that you can return the vehicle with close to an empty tank. This always costs more than filling up at a gas station, but some find it more convenient to not have to worry about that when returning to the airport or office.
Optional extras
Optional extras that you add to your car rental reservations can increase the costs, sometimes significantly.
The types of extras you can rent along with the car include baby seats, child seats, GPS units, and WiFi routers. The prices of each depend on which company you rent from. We display the prices on the booking page for most cars, so you can easily see what the total will be before booking.
If you are looking to save money, it's a good idea to decide which extras are absolutely necessary for you. For instance, given the prevalence of navigation apps these days, it probably won't make much sense to rent a GPS unit. Of course, other extras like a baby seat will be absolutely essential.
Physical items are not the only things you can add to your rental contract. One of the most added extras is adding an additional driver to the contract. Almost all rental companies charge an extra fee for adding an additional driver. Sometimes this is a daily fee and sometimes a flat rate.
If you plan to drive a lot, you may very well find it worth paying for this. If not, it may be best that you just stick to having one person drive the entire time.
Some rentals come with mileage limitations with the possibility of purchasing unlimited mileage as an extra. Usually, if you exceed the limit, you will have to pay for every extra mile or kilometer, which can add up quickly. So if you plan to drive a lot, you would be much better off paying the extra fee for unlimited mileage.
Finally, there is often an additional fee for taking the rental car across international borders. This is particularly common in Europe where you can easily travel between countries. This fee depends on which country you rent in, which company you rent from, and where you intend to travel. So if you plan to travel to multiple countries, make sure to check the rental conditions in advance to know how much you'll have to pay for that.
The types of extras you can rent along with the car include baby seats, child seats, GPS units, and WiFi routers. The prices of each depend on which company you rent from. We display the prices on the booking page for most cars, so you can easily see what the total will be before booking.
If you are looking to save money, it's a good idea to decide which extras are absolutely necessary for you. For instance, given the prevalence of navigation apps these days, it probably won't make much sense to rent a GPS unit. Of course, other extras like a baby seat will be absolutely essential.
Physical items are not the only things you can add to your rental contract. One of the most added extras is adding an additional driver to the contract. Almost all rental companies charge an extra fee for adding an additional driver. Sometimes this is a daily fee and sometimes a flat rate.
If you plan to drive a lot, you may very well find it worth paying for this. If not, it may be best that you just stick to having one person drive the entire time.
Some rentals come with mileage limitations with the possibility of purchasing unlimited mileage as an extra. Usually, if you exceed the limit, you will have to pay for every extra mile or kilometer, which can add up quickly. So if you plan to drive a lot, you would be much better off paying the extra fee for unlimited mileage.
Finally, there is often an additional fee for taking the rental car across international borders. This is particularly common in Europe where you can easily travel between countries. This fee depends on which country you rent in, which company you rent from, and where you intend to travel. So if you plan to travel to multiple countries, make sure to check the rental conditions in advance to know how much you'll have to pay for that.
Example prices
You're probably now wondering what it might cost to rent a car where you plan to travel. So let's spell out what type of prices you can expect in our most popular destinations. Daily prices tend to depend on how long you rent a car. Usually, rental companies have special weekly and monthly rates.
In many locations, your rental contract can only last up to 30 days by law. Often, you can overcome this by renting the car for multiple 30-day periods but may need to return to the rental office to sign a new contract each time.
All prices are for pick-up on June 2 and were from searches made on June 17, 2024. Prices can depend on many different factors including the season, day of week, inclusions, type of payment, and so on.
In many locations, your rental contract can only last up to 30 days by law. Often, you can overcome this by renting the car for multiple 30-day periods but may need to return to the rental office to sign a new contract each time.
All prices are for pick-up on June 2 and were from searches made on June 17, 2024. Prices can depend on many different factors including the season, day of week, inclusions, type of payment, and so on.
Aleksandrs Buraks
Head of Growth at DiscoverCars.com
Aleksandrs has over 10 years of experience in marketing with a focus on creating stellar content that provides topical insights using data. Having taken five road trips across Europe and one in the U.S., he is passionate about traveling by car. His favorite countries to visit are Denmark and Thailand. You can find him on Linkedin, Facebook, and Twitter.