How Much Does a Rental Car Cost?

Last Updated on December 10, 2024
Written by CPA Alec Pow | Content Reviewed by CFA Alexander Popinker

Renting a car for your next trip doesn’t have to break the bank if you understand the key pricing factors involved. Rental rates fluctuate daily based on variables like vehicle type, location, trip duration and extra fees. This comprehensive guide breaks down the typical base costs for renting cars of all types so you can accurately budget.

We’ll examine daily, weekly and monthly rates across all vehicle classes, outline additional charges like insurance and taxes, compare pricing across major car rental agencies, and provide insider tips from industry experts to keep your next rental as affordable as possible.

How Much Does a Rental Car Cost?

Typically, rental cars range from $30 to $75 per day on the low end for a basic economy sedan, and $100 to $300+ per day on the high end for a luxury vehicle like a Cadillac Escalade or Range Rover. Daily rental car costs can vary substantially based on vehicle type, location, and duration.

Rental cars fall into main categories based on passenger capacity, cargo room, luxury features and other amenities. Typical daily rental rates are:

• Economy – $30-$60. Subcompact and compact sedans ideal for 1-2 passengers with minimal luggage.
• Compact – $35-$70. Larger 2-4 passenger compact sedans and hatchbacks.
• Intermediate – $40-$80. Midsize sedans fitting 4-5 passengers comfortably.
• Standard/Full-Size – $50-$150. 5 passenger family sedans with spacious trunks.
• Premium – $75-$250. Luxury sedans and sports cars providing premium features and performance.
• Minivans – $70-$200. For families needing room for up to 7 passengers plus substantial luggage.
• SUVs – $80-$250. 5-7 passenger SUVs with abundant cargo space. 4X4 sometimes included.
• Luxury SUVs – $150-$400. Range Rover, Cadillac Escalade, etc. Extravagant features and prestige brands.

Rates rise substantially for newer model year vehicles still in demand. Electric vehicles also cost significantly more due to limited availability.

According to an article from Cheapflights, the average price for renting a small car is about $31 per day, with prices ranging from $23 to $46. Notably, September is reported as the cheapest month to rent a small car, averaging around $23 per day, while December sees prices peak at approximately $46 per day.

Another source, Momondo, states that the average cost for a small car rental in the U.S. is around $42 per day. The cheapest time to rent a small car is noted as May, when prices drop to about $35 per day. For larger vehicles, the average price for a large car rental is approximately $59 per day, with January being the most affordable month at around $42 per day.

A report from Fidelity Investments indicates that rental car prices can range from about $50 to $80 per day, averaging around $500 per week including taxes and fees. The article highlights that factors such as location and booking time significantly influence these rates, with airport rentals typically being more expensive than those in city centers.

According to an analysis by NerdWallet, the average weekly rental price for cars booked 91 days in advance was about $555, while bookings made just seven days prior averaged around $481. The report also notes that rental prices have increased by approximately 35% compared to pre-pandemic levels due to supply chain issues and high demand.

Lastly, an overview from Kayak states that the average cost of renting a car in the U.S. is about $59 per day. This figure can fluctuate based on various factors such as vehicle type and rental duration, with some agencies offering competitive rates starting as low as $14 per day.

Factors Impacting Rental Car Pricing

Several primary factors play an enormous role in determining daily, weekly and monthly rental costs:

• Rental duration – Weekly or monthly rentals offer substantially lower rates per day, with longer bookings providing the best value. Daily charges are always highest.
• Vehicle size/class – Larger and more premium vehicles are far pricier. Luxury SUVs often run 4-5 times more than economy cars.
• Rental location – Airport branches typically charge 10-25% more than non-airport locations in the same city due to added facility fees and surcharges.
• Seasonality and peak demand – Prices surge 20-50% during high seasons like summer, school breaks and holidays when demand spikes and availability drops. Weekends also cost more.

Understanding the impact these core variables have on pricing provides the basis for more accurately estimating potential rental rates based on your specific trip parameters. But additional fees also quickly increase your total cost, so let’s look at those too.

Additional Fees and Surcharges

Beyond just the daily, weekly or monthly base rental rate, important extras that commonly tack on more to your final total cost include:

• Collision and damage waiver insurance – $10-$30+ per day for CDW/LDW that covers collision and damage liability. Declining this adds risk of high out-of-pocket expenses if an accident occurs.
• Supplemental liability insurance – $10-$20 per day for added third-party injury and property damage liability above state minimums for additional peace of mind.
• Young renter fees – $20-$30 per day for drivers under 25 years old who are assessed as higher risk.
• Second driver fee – $10-$15+ daily for each additional authorized driver added to the contract, with possible age restrictions.
• One-way rental fee – $50-$300+ one-time fee to return the vehicle to a different location from the origin pickup.
• Mileage overage charges – Approximately $0.25-$0.50 per mile driven beyond any included mileage limits, where applicable.
• Fuel charges – Up to $15 per gallon if the car is returned with less than a full tank that you committed to. Prepaying for a full tank is recommended to avoid this major cost.
• Child safety seat rental – $10-$15 per day for a child seat or booster seat rental if needed.

Watch diligently for fees like these when estimating your total rental cost to avoid budget busting surprises. They can easily double your anticipated base rate if you’re not careful.

Major Car Rental Agencies

Rental pricing, vehicle availability/features, and fee structures can vary notably between top national car rental brands:

• Hertz offers competitive base rental rates but fewer luxury vehicle options. No young renter fees.
• Enterprise boasts an extensive local office network with proximity convenience but also charges slightly higher daily fees as a result.
• Avis positions itself as a more premium brand with higher-end vehicles but limited locations. Young renter fees apply.
• Budget focuses on budget-conscious travelers seeking the most economical basic rental for essential transportation.
• Thifty offers rock-bottom rental rates but very limited customer service and a dated fleet. You get what you pay for.

Comparison sites like Kayak easily search for the best rental deals across all major providers by exact location while filtering for preferred vehicle types.

Rental Car Insurance and Protection Plans

It’s crucial to understand the optional insurance coverages available when renting to ensure you have suitable protection. Main offerings include:

• Collision Damage Waiver (CDW) – Waives liability for vehicle damage starting around $15-$30 per day depending on location and car class. Reduces risk of major out-of-pocket repair expenses if an accident is your fault.
• Supplemental Liability Protection (SLP) – Provides higher third-party injury and property damage liability limits beyond state minimums for added peace of mind, typically $10-$20 per day.
• Personal Accident Insurance (PAI) – Covers medical bills for both the driver and passengers in case of injuries sustained during the rental, usually priced around $5-$10 per day.

Some credit cards and loyalty programs include basic rental car insurance benefits, allowing you to decline certain premium options to save money, but the coverage may be limited.

You might also like our articles on the cost of getting a taxi, an Uber, or traveling by bus.

Estimate Your Total Rental Cost

Here are some useful tools and strategies to estimate accurate pricing:

• Use rental agency online cost calculators – Input your exact trip details for an advance estimate.
• Leverage travel search engines – Quickly compare daily, weekly and monthly rates across major national brands side-by-side.
• Check discount code websites – Find and apply promotional codes to lower base rental rates.
• Download rental apps – Apps like AutoSlash track your reservation and alert you if local rates drop.

Being an informed comparison shopper goes a long way towards avoiding unnecessary overspending.

International and One-Way Rentals

Two common situations that can substantially increase your rental car costs include:

International car rentals – Credit card coverages often don’t extend abroad. Confirm required insurance needs like collision, theft protection, and third-party liability match the destination country. Ensure taxes, VAT, concession fees, and other surcharges are included in any estimated pricing. Renting can be very expensive overseas.

One-way rentals – Dropping off the vehicle in a different city from your originating pickup location adds steep one-way fees starting around $100+ on top of any potential extra mileage charges depending on company policy. Always compare estimated one-way rental costs versus returning back round-trip to your starting location when road-tripping between cities. The round-trip option is sometimes cheaper surprisingly.

Expert Insider Tips

We asked experienced rental car insiders for tips on maximizing savings:

• “If renting for business, ask about corporate discount codes which offer 10-25% or more off for companies with a travel profile.” – Andrew S., Corporate Travel Agent
• “Book rentals further in advance for lower prepay rates, especially for peak dates. Last minute rentals are almost always most costly.” – Mark T., Former Rental Manager
• “Bundling your rental with your flight and hotel using a site like Expedia or Priceline provides package discounts you can’t get renting individually.” – Jessica K., Travel Blogger

With some diligent research and insider techniques, you can save substantially on car rental costs.

Saving Money on Your Next Rental

We asked experienced rental car insiders for money-saving tips:

What’s the best way to get the lowest price on a weekly or monthly rental?

“Book at least 2-3 months out for a long-term rental and prepay upfront – this locks in the cheapest extended use pricing.” – Mark J., Former Enterprise Manager

What add-on coverages or services should renters avoid?

“Don’t waste money on supplemental GPS or toll pass devices – use your phone’s maps and pay cash tolls to save the daily electronics fee.” – Andrew P., Former Budget Sales Agent

Are one-way rentals always more expensive than returning to the original pickup location?

“Not always – check both options. Occasionally the one-way fee plus airport surcharge makes round-trip cheaper surprisingly.” – Jessica C., Travel Writer

Final Words

Rental car pricing can seem intentionally opaque and complex with countless variables involved, from daily rates to hidden extras and fees. But being an informed shopper comparing all options goes a long way towards securing the best value while avoiding budget-busting surprises down the road.

The $50 per day rental advertised may end up $90+ after sneaky add-ons, so do your diligence. With the insider tips provided above, your next rental car should fit comfortably within your trip budget.

Answers to Common Questions

Can I return my budget rental car to a different location?

Most rental companies charge substantial one-way fees starting around $100+ to return to another destination. Check individual policies, as some agencies offer free one-way rentals between corporate-owned locations.

Do I get a refund if I return my rental car early budget?

Most agencies issue a prorated refund for unused prepaid rental days provided the car is returned earlier than the scheduled period. Exact policies vary, so check with the provider.

Does Enterprise monitor your speed?

No, Enterprise does not track or monitor rental car speeds. However, fines incurred for traffic violations are the renter’s responsibility and failure to pay may result in further penalties or collection actions.