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If you rent a car late, you know that the price is higher than the pandemic. According to some estimates, rental car prices increased by nearly 50% between July 2019 and July 2022. Prices have fallen slightly in recent months, but they are still above the pre-epidemic average.
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The bottom line is that if you need to rent a car for travel or other purposes in 2023, you can expect to pay more than you can afford.
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Here are *pictures* of car rentals from several major companies at four airports: Atlanta Hartfield Jackson, New York, JFK Los Angeles International and Chicago O’Hare.
* Source: Rentalcars.com average rental car search. The search was conducted on March 23, 2023 for a lease period beginning on April 20, 2023 and ending on April 21, 2023. These costs are for comparison purposes only.
You owe yourself money to rent a car. As our search shows, rental car prices can vary between companies. Here are some other factors that can affect the cost of rent.
For example, Avis offers the following car options at Hartsfield-Jackson Atlanta International Airport. You’ll see a significant jump in price from the standard to the full-size category, and another significant jump for the specialty and luxury categories.
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Source: Rentalcars.com Find a rental car from Avis at ATL Airport. The search was conducted on March 23, 2023 for a lease period beginning on April 20, 2023 and ending on April 21, 2023. These costs are for comparison purposes only.
So be sure to get a feel for what you need while booking a room. Are you traveling for a few days with only minimal luggage? Maybe an economy car. Do you and your wife have three children who are a burden? You can pay for the car. Are you and a few girlfriends going away for a girls weekend and want to keep the prices high? Perhaps entering in style with a luxury car is the right choice.
When comparing fares at our four major airports, you’ll see the price difference: New York JFK is more expensive than the other three fare destinations. Like most things, rental cars are subject to the rules of supply and demand. Renting in a popular tourist destination or during a busy season (like during spring break in South Florida) can help keep your costs down.
Renting at an airport rather than an off-airport location can also be a cost factor. If you can get transportation from a non-airport rental agency (consider shared taxis or public transportation), you can save a lot of money.
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Bad news for those who like to travel independently: booking as early as possible can affect your costs. For example, booking on a Tuesday for the following weekend will be more expensive than renting a few weeks or months in advance (and may limit your options, as certain types of cars may be sold out).
A final factor that affects the cost is the age of the driver. Car rental companies treat young drivers as a risk to do business with older drivers and charge accordingly. Some companies even have a minimum age. For example, Hertz only hires drivers 20 or older. Avis’ minimum age is 21 (18 in New York and Michigan), but it adds an additional fee for drivers under 25.
As mentioned above, you can usually get a better price if you book your rental car in advance. However, car rental prices fluctuate a lot. So, a money-saving strategy is to book your car in advance with a reservation that you can cancel without penalty. Then check the week and days depending on your travel dates and rebook if you see a drop in price. Be sure to cancel your original order!
If you use a rental car brand, consider signing up for their loyalty program, if one exists. This can save you money if you rent frequently. For example, Hertz Gold Plus Rewards allow you to earn free rental days and upgrades. Also, select Avis offers points that you can collect for free fares.
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Collision Damage Waiver (CDW) and other rental car insurance options can add $30 per day to your rental. However, you can decline these options without adding to your financial risk if the vehicle is damaged or stolen while you are in possession. Your auto insurance policy will likely apply to rental cars.
Finally, when you’re at the grocery store and offered the option of prepaying for gas or returning the car with a full tank, choose the latter option. When you prepay for gas, the rental company usually charges you for the entire tank — regardless of how much gas is left. So, on your return trip, spend less stopping at the gas station near the airport and only pay for the gas you actually use.
Remember that your daily fare is only a fraction of your total ground transportation costs. You have to pay for gas and you can pay for valet and parking. Each of these can add significantly to your travel budget. If the costs add up, consider these rental car options.
You’ll find taxis or service providers like Uber and Lyft at most major airports at competitive rates. A taxi from Hartsfield-Jackson Atlanta Airport to the city costs $30, while an Uber or Lyft ride is $15. However, be sure to do some research first, as some busy airports in some countries do not allow bicycle service.
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Of course, you can also use these services to reach your destination. Depending on how far you need to travel, relying on a taxi or rideshare service can save you money compared to renting a car.
Check your hotel’s website to see if it offers airport transfers. These services are often free, although you may have to wait a few minutes in the airport area for the car to arrive. Hotel transfers are also available during the day only.
If you travel to cities, use public transportation. Public buses and trains often serve the airport. You can walk to the station or park a short distance from your hotel. Yes, you need to know the schedule and how and where to connect, but you can save a lot of money on your car transportation costs.
With business and personal travel booming in the post-pandemic era, demand for rental cars is growing beyond supply. In recent years, this has been exacerbated by delays in the car manufacturing supply chain, which limits the number of car rental companies that can be purchased.
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Car insurance is mandatory throughout the United States, even when you are driving a rental car. The good news is that your insurance policy may provide rental insurance. Check with your insurance company or agent before you travel to confirm what your insurance covers.
Rental car prices in 2023 will be slightly lower than in 2022. However, many industry experts predict that, unfortunately, car rental prices will remain high for the foreseeable future. It may be a while before we see rental car prices return to normal.
The information provided here was independently prepared by editorial staff. For more information, visit our About Us page. Written by Rebecca Betterton Written by Rebecca Betterton Arrow Copyright, Auto Loans Rebecca Betterton is the author of the 2021 Auto Loan Report. According to his post, Rebecca aims to bring clarity and convenience to the auto loan industry while the cost of financing used cars continues to rise due to strong inflation. Connect with Rebecca Betterton on Twitter Connect with Rebecca Betterton on LinkedIn Connect with Rebecca Betterton by Email Rebecca Betterton
Edited by Rhys SubitchEdited by Rhys SubitchArrow Editor-in-Chief Personal Loans, Car Loans & Loans Rhys Subitch is an editorial team dedicated to creating educational content about loan products for all aspects of life. Connect with Rhys Subitch on LinkedIn Linkedin Connect with Rhys Subitch by Email Rhys Subitch
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