Want to go on a holiday or road trip or try a specific vehicle before? Decide which to buyrenting a car makes a lot of sense. That being said, we want to prepare for the costs associated with renting a car in advance, especially if you are renting it during peak driving hours or need a premium vehicle.
Vehicle rental costs vary depending on the type of vehicle, the rental company, and where you rent the vehicle. On average, you can spend less than $50 a day to over $100. Understanding how each factor affects price can help you budget your costs, so read a summary of the facts that affect car rental costs and how you save money.
Car rental costs if necessary
Renting a car for vacations and business ventures comes with many levels of excitement and costs. Considering where these differences fall, this is especially important as inflation rates have traveled more expensively for leisure and work on your day.
If you are embarking on a family trip, you may need to spend more on a larger vehicle, but if you are renting a car for business, you may need space for yourself and your luggage. On top of this, cities with more tourism and attractions may charge more per day than other regions. Keep these factors in mind when budgeting rental costs.
Factors that affect car rental costs
The estimated cost of renting a car depends on factors such as location, size, timing, and rental company. Hopper’s 2025 Consumer Travel Index and 2025 Outlook show that the average daily cost of a car rental was around $39 in January. To calculate your expected costs, compare prices through top rental companies such as Hertz, Enterprise, and Avis. You can also consider checking out transactions that are available through warehouse stores such as travel credit cards and Costco.
position
You may find better car rental deals near the city centre instead of the airport, but remember that rental fees also vary in different parts of the country. Tourist areas may have lower rents than elsewhere due to increased competition, but prices may be higher during popular seasons in high demand.
| position | Average rental costs per day |
|---|---|
| Fort Lauderdale | $38 |
| Las Vegas | $38 |
| Los Angeles | $38 |
| Miami | $35 |
| Orlando | $38 |
sauce: 2025 Consumer Travel Index and 2025 Outlook, Hopper
Car size
When choosing a car rental, the first question most renters ask is the amount of space they need. Car rental companies classify vehicles according to their size.
- Economy cars are usually offered by the cheapest and smallest rental companies. These vehicles have space for one or two people along with their luggage.
- A mid-way or compact car offers more space than an economy car that normally passes through an extra room in the trunk. They can usually accommodate up to four people and a minimum of luggage.
- The standard vehicle with full-size rear seats has space for four adults. It also provides ample trunk space, which makes it a good option for families with a significant amount of luggage.
- Luxury cars are luxury vehicles, ranging from sporty convertibles to full-size SUVs and vans.
In most cases, daily rental fees will increase along with the size and category of your car or truck. However, rental companies may offer specials for vehicles in certain categories, especially if they have ample stock.
For example, if a company has a limited number of economy cars that can be rented over a particular weekend, it may offer standard vehicle discounts.
Kayak says it’s the lowest daily rate in Los Angeles from July 11th to July 14th for a variety of car sizes.
| Types of cars | Approximate capacity | Minimum daily rate |
|---|---|---|
| economy | 2 bags, 2 bags | $13 |
| compact | 4 adults, 2 bags | $14 |
| Intermediate | 5 adults, 3 bags | $15 |
| standard | 5 adults, 3 bags | $15 |
| Full size | 5 adults, 2 bags | $15 |
| Compact SUV | 5 adults, 2 bags | $21 |
| Intermediate SUV | 5 adults, 2 bags | $24 |
| Full size SUV | 5 adults, 2 bags | $54 |
| Minivan | 5 adults, 5 bags | $74 |
| Premium | 5 adults, 5 bags | $62 |
sauce: 2025 Consumer Travel Index and 2025 Outlook, Hopper
season
It is also important when you choose to rent. Peak travel seasons like summer earn far more daily fees than off-peak travel seasons. Your location could also affect this – although summer travel fees can be higher in Florida, if you are planning a leaf peek in New England, you can pay more in the fall than in other times.
Driver’s age
The age of the tenant has a significant impact on costs. The younger the driver, the higher the price. This is because younger drivers are viewed as higher risk by rental companies. Many rental companies don’t even rent to people under the age of 20, but most have policies that restrict rentals for people under the age of 25.
Rental companies may also charge younger renters additional fees. In some states, these prices range from $15 to $65 per day. Consider these higher prices when deciding on a driver to rent.
For example, rent from Enterprises in Michigan will add an additional fee of $36.50 per day for drivers ages 18 to 20, and $15.75 per day for drivers ages 21 to 24 to 24.
Not all rental companies charge these fees. When choosing a place to rent, consider both daily costs and extra charges.
How to get the best deals with your car rental
Car rental prices are based on a variety of factors, but you can take a few steps to drive with extra cash in your pocket.
Comparison Shop
Shopping can save money with your next car rental. Prices often vary by rental agent, so a little leg work could make a better deal. Comparison sites like Priceline, Expedia, Autoslash, and Kayak make it easy to compare car rental estimates. If you’re a Costco member, you’ll also know that Costco Travel has some great car rental deals. Finally, check your credit card (especially your travel card) for options and potential discounts.
Please make a reservation early
By booking a car rental in advance, you can get the right vehicle and potentially save money. This is especially important if you intend to avoid major holidays. If you can book your car without cancellation fees, booking early will help you “lock in” the price with the option to cancel and re-book at a lower price if you find it later.
Skip add-ons
There may be some add-ons provided before you receive your rental key. Options include GPS, Toll Planning, XM Radio Access, or Car Seat. If you want to save money, it’s best to skip these options.
Car rental insurance is another costly add-on that is often presented when booking or picking up a vehicle. You can add between $15 and $30 per day to your bill, but if you get involved in an accident or your car is stolen, you can save thousands of people.
These protections may already be available through credit cards or current car or homeowner insurance contracts. However, there are some restrictions so check how it works with your credit card issuer or insurance provider.
Hidden fees and additional fees
Car rental companies also charge hidden fees that affect the cost of renting. Some of these charges are already included in the price, while other charges may appear in the statement several months after the rental period.
- Rental at the airport: Renting a car at the airport can be more expensive than renting it at an off-site facility. This is because airport concessions and customer facilities charge fees for the car rental company to take over to consumers.
- Credit cards hold: Some companies have withheld approval for their client’s debit or credit card. This fee, ranging from $150 to $500, gives the car rental company some protection if the tenant damages or fails to return the vehicle. The company will release the funds within a few days of returning the car rental to an acceptable state.
- Fuel cost: Always refill your gas tank before you return your car to your agency. You can avoid any additional charges for fueling each time you do this.
- Cancellation fee: Many businesses charge a cancellation fee to renters who cancel their reservation within 24 hours of rental. If the tenant pays in advance, the company will deduct the payment and deduct the cancellation fee.
- Vehicle damage: Renters who damage the interior or exterior of the vehicle must pay for the repair. A careless tenant may end up paying for damages caused by previous drivers. To avoid this situation, you need to thoroughly inspect the vehicle before driving it out of the lot, take photos of visible damage, and warn employees.
- Adding drivers: Most rental agents charge a daily fee to add drivers to your rental agreement. Costs are determined by the state and rental agencies.
- Condition modification: Modifying the terms of the rental agreement by modifying or extending it may also be at additional cost. The amount charged is different and you can pay daily fees.
Knowing these hidden fees can help renters understand why gross rents are higher than the advertised rental prices, but there is usually little you can do to avoid them.
Conclusion
The cost of a rental car will vary depending on the rental agent, car type, location and driver age. We also find that some markets are much more expensive than others. However, there are ways to reduce costs.
Just like when comparing car loans, don’t shop, postpone bookings, or skip additional add-ons. Finally, be sure to read the fine printouts of your rental agreement to avoid any unexpected costs.
