When is The Best Time to Rent a Car?

For years, travelers have been advised to book flights and hotels in advance to secure the best deals. But when it comes to renting a car, people often get confused. If you think, when is the best time to rent a car to get both the ideal vehicle and the best rate? Well, it varies and depends on several factors  like how much early have you booked, what time of the year it is, where you plan to travel. Prices tend to fluctuate based on demand, so booking early for peak travel seasons or popular locations is usually wise. However, last-minute deals can sometimes be surprisingly affordable for off-season travel. 

Understanding these trends is key to saving money and ensuring vehicle availability. This guide explores all the important aspects of car rental timing, helping you make smart, well-informed choices to suit your travel needs and budget, no matter when or where you’re going.

• Do Rental Car Prices Increase as the Pickup Date Approaches?

Not necessarily. Contrary to popular belief, booking a rental car far in advance doesn’t always guarantee the lowest rate. According to a comprehensive study, which analyzed data from eight leading car rental companies, Alamo, Avis, Budget, Dollar, Enterprise, Hertz, National, and Thrifty- prices can actually drop closer to the rental date. 

As per a survey, booking seven days before your journey date helps save money more than booking around three months beforehand. This unexpected tendency defies the common belief that early preparation always pays off and is present across major rental car manufacturers. It may be advantageous to wait, even for those who like to plan far in advance. According to the research, last-minute customers often benefit financially from lower rates. For those on a tight budget, it may be wiser to wait until closer to the time of their trip. Here’s how each rental company stacks up:

• Alamo:

Booking one week ahead instead of three months can save you 4.17%. While not the largest savings, it still shows that early booking isn’t always beneficial.

• Avis:

Avis customers can save a significant 15.01% by waiting until the week before their trip to reserve a car.

• Budget:

Budget also favors short-term planners with average savings of 9.64% when booked one week out.

• Dollar:

With 19.22% in potential savings, Dollar offers one of the more compelling arguments for late reservations.

• Enterprise:

Enterprise shows the smallest gap at just 2.72%, though even this suggests that booking early isn’t always cost-effective.

• Hertz: 

Hertz renters could save an impressive 23.60% by choosing to reserve closer to their travel date.

• National:

National rewards procrastinators with a 5.09% average savings when booked just a week out.

• Thrifty: 

Thrifty stands out the most-offering a massive 28.02% savings by booking one week ahead instead of months in advance.

• How Timing Affects Rental Rates?

As per an Advisor report from August 2024 states that the cost of renting a car for travel in May 2024 was monitored over a six-month period. The findings revealed that January had the highest average daily rental rates, peaking at $152. Given that early planners in January ended up paying more, this implies that scheduling well in advance may not necessarily guarantee the lowest price. 

In order to get better rates, the report emphasizes how crucial it is to keep an eye on rental trends and be flexible with booking schedules. Moreover, travelers may benefit from comparing rates closer to their travel dates rather than reserving too early in the year.

• Early April:

Car rental rates in early April typically average around $104 per day, making it slightly higher than other times of the month but still reasonable for springtime travel plans.

• Mid-April:

Mid-April offers the most affordable car rental rates of the month, averaging just $99 per day. This period is ideal for budget-conscious travelers looking to save money.

• Late April:

Rental prices in late April hover just above $100 per day. Although slightly higher than mid-month, this rate still represents a fair deal for those traveling at month’s end.

• When Should You Book in Advance?

While last-minute bookings can help you save money, there are times when early reservation makes sense:

• Peak Travel Seasons or large Events: 

Traveling during holidays, major festivals, or big sporting events often causes a surge in demand for rental cars. Prices rise quickly, and popular models may sell out. Booking early ensures you don’t miss out or overpay unnecessarily.

• Special Vehicle Needs: 

It is a good idea to make reservations in advance if you have certain car requirements, such as minivans, full-size SUVs, luxury models, or 4WD trucks. Making a reservation in advance ensures your preferred choice because these categories have limited availability and high demand, particularly during peak seasons.

• Peace of Mind: 

You can feel more at ease if you reserve your rental car in advance. You will not have to be concerned about running out of goods or forgetting later. You can remain organized and concentrated on your travel plans because you will not have to worry about it as much.

• Fixed Itinerary: 

Booking a refundable car hire in advance can make planning easier when your trip schedule is set and unlikely to alter. It gives you flexibility and locks in a fair rate, which makes planning your vacation easier and less stressful overall.

• When Should You Book the Last Minute?

Being flexible with your trip dates and car choices can lead to big savings. Booking a rental car just a few days before your vacation often unlocks last-minute savings. Travelers who are flexible with their schedules and open to different car models are usually eligible for these discounts. This strategy increases your chances of finding an excellent deal.

Advantages of last-minute car rental bookings include:

• Lower prices due to unsold inventory:

To fill unsold inventory, rental car companies often make last-minute price reductions. Travelers can also often discover cheaper discounts if they make their reservations close to the pickup date. Last-minute rentals are an excellent choice for clients on a tight budget because providers are more likely to offer cheaper rates when cars are left unused. This tactic enables irregular travelers to save money while assisting businesses in avoiding idle cars. It is possible to save a lot of money by making your reservation later than expected.

• More accurate pricing as travel plans firm up:

As your travel dates and itinerary become more certain, you can better evaluate rental car options. This helps you find pricing that reflects current market demand and availability, avoiding early estimates that may not be as cost-effective.

• Opportunity to book cheaper non-refundable rates:

When you’re sure of your travel schedule, non-refundable rental options become viable. These rates are typically lower than flexible ones, letting you save money by locking in a cheaper deal that doesn’t allow changes or cancellations.

• Need More Savings? Try These Car Rental Tips:

You don’t have to depend on last-minute bookings—there are more effective ways to save on rental cars.

• Explore Non-Traditional Rental Options:

Don’t limit yourself to traditional car rental agencies. Peer-to-peer car-sharing platforms like Turo and Getaround, or hourly rental services such as Zipcar, can be excellent alternatives. These services often offer more flexible pricing, especially for shorter rental periods, and can sometimes be significantly cheaper than conventional rentals. Depending on the platform and rental duration, you might even find perks like fuel or insurance included.

• Choose the Right Credit Card:

The credit card you use to pay for your rental can offer valuable benefits beyond just earning rewards. Many travel credit cards provide perks such as primary or secondary rental car insurance. Utilizing this coverage can help you avoid purchasing expensive insurance at the rental counter, giving you peace of mind in case of an accident or damage. Bilt World Elite Mastercard with zero annual fee is one such card that you may choose if you have to rent a car quite frequently. 

• Leverage Your Memberships for Discounts:

Before you book, check if any of your existing memberships offer car rental discounts. Programs like Costco, AAA, or even your university or corporate affiliations often provide exclusive deals. These can include reduced base rates, free upgrades, waived fees, or benefits like free additional drivers. The savings from these programs can really add up!

• Beware of Hidden Fees: 

You should watch out for hidden fees when renting a car. For this, you need to carefully read the fine print for charges like extra driver fees, young driver surcharges, late return penalties, toll transponder costs, and GPS rentals. Only accept add-ons if you truly need to avoid unnecessary expenses. Staying informed helps you stick to your budget and prevents surprise charges.

• Stick to a Single Driver:

Car rental agencies frequently charge extra for additional drivers. To avoid these fees, try to limit the rental to just one driver if possible. However, keep in mind that some memberships, like AAA or Costco, might waive these additional driver fees, allowing you to share driving responsibilities without incurring extra costs.

• Maintain A Hybrid Approach:

This is another unique technique indeed to reap profitable benefits while renting a car. If you have booked a refundable reservation a couple of months before your journey, you can keep track of the same. When you notice a drop in price, cancel your previous reservation and rebook. This way, you may book at a lower price. It could be tedious to keep monitoring the price from time to time. However, some search engines like Kayak will email you whenever there are any price changes that suit your requirements. 

In A Nutshell – How to get the lowest rate on a rental car?

So, here is a gist of how you may find a low and suitable rate while renting a car. 

• Use Membership Discounts – AAA, AARP, and loyalty programs often offer savings.
  
• Choose Economy Cars – Small, fuel-efficient models are usually the cheapest.
  
• Limit Drivers – Extra drivers often incur additional rental fees.
  
• Decline Insurance – Check your credit card or personal car insurance first.
  
• Skip GPS – Use your smartphone for navigation instead.
  
• Avoid Extras – Satellite radio and add-ons increase total cost.
  
• Prepaid Gas Costs More – Refuel yourself to save money.
  
• Evaluate Need – Consider if you truly need a rental car.
  
• Use Public Transport – Subways or buses can be cheaper and convenient.
  
• Try Ride-Sharing – Uber or Lyft may cost less for short trips.
  
• Book Smart – Reserve your rental early for better rates.
  
• Inspect the Car – Document damage before driving to avoid charges.
  
• Return On Time – Late returns often trigger extra fees

Conclusion:

When it comes to renting a car, timing plays a crucial role in both cost and vehicle availability. Although it is often advised to make reservations in advance, new research shows that, depending on the company and time of year, last-minute rentals can result in significant discounts, particularly if made a week before departure. 

Early booking is still the better course of action, though, especially during busy times or if you have certain car requirements. Being flexible is essential; keep an eye on rental trends, be open to various models, and take into account other rental platforms. You are in a good position to get the cheapest price on a car rental when you combine it with membership discounts and travel credit card benefits. Knowing these trends will help you make wise, cost-effective decisions whether you are booking days before departure or months in advance.

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