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How to Get the Best Price on a Rental Car – 10 Simple Steps


Do you recognize this scenario? You’re planning to rent a small car for a vacation or business trip. Yet somehow, when you walk away from the car rental counter, you’re holding the keys to a much bigger car with a much bigger price tag. 

If this has happened to you, it was no accident. You were a victim of upselling — one of the many tricks car rental companies use to squeeze more money out of you. They lure you, scare you, or badger you into driving away with a bigger car than you planned. 

To save money on car rentals, you need to beat the agencies at their own game. First, do some research to figure out exactly what car you need. Then, shop around and use discounts to make sure you pay the lowest possible rate for it. 

How to Get the Best Price on a Rental Car

Getting the best rate on your car rental is largely a matter of doing your homework. You have to know what kind of car you need, when to book it, and where to shop for the best prices. You also need to know how to avoid tricky upsells and hidden fees.

1. Know What You Need

If you’ve ever rented a car before, you know rental companies often try to upsell you. When you arrive to pick up your vehicle, they don’t hand over the keys right away. 

Instead, they suggest you upgrade to a larger model than the one you booked. Often, they say it will offer more comfort, more power, or even better gas mileage. 

That last statement is unlikely to be true. In general, bigger cars use more gas than smaller ones. If you let the rental clerk talk you into a bigger model, you’ll end up paying more for gas and the car itself.

As for the extra room and extra power, they probably don’t matter. If you’re driving by yourself or with just one or two other people, a compact car should have enough space. And you’re unlikely to need more power unless you’re planning to drive up steep mountain roads or in deep snow.

If there’s any doubt in your mind about how much car you need, do some research before you book. Look for reviews of the model you’re considering and see what owners say about its comfort, mileage, and power. 

Then, when the clerk starts trying to sell you on a bigger model, you can say with confidence that the one you booked is just fine for your needs.

2. Book Early, Especially During Peak Travel Times

Car rental companies have a limited number of cars in their fleets. During peak travel times, every vehicle is in demand as customers flock to travel destinations. And when demand outstrips supply, prices go up. That’s simple economics.

So if you’re traveling during a busy travel season, reserve your car as far in advance as possible. You’ll avoid paying a premium for booking during the busy season or, worse still, finding the vehicle you want is unavailable.

3. Take Advantage of Discounts

Never pay full price for a rental car without checking for discounts first. There are all kinds of programs that can offer you a better price on a rental, including:

  • Military Discounts. Many car rental companies, including Alamo and Budget, offer discounts for military service members and veterans. Some also have special deals for other government employees or first responders, such as firefighters and police. If you belong to any of these groups, always ask about discounts when booking a rental.
  • USAA Rates. If your spouse or parent is in the military, you could get a discount through USAA. This financial provider serves active military members, veterans, and their spouses and children. Avis, Budget, Enterprise, and Hertz have special USAA rates. 
  • Senior Discounts. Several rental car agencies work with AARP to provide discounts for older adults. AARP members can save up to 30% at Avis, Budget, and Payless. And all travelers over 50 can get lower prices from Hertz through its Fifty Plus program.
  • Corporate Codes. Many businesses have partnerships with car rental companies. Their employees get better rates, and the agencies benefit from the extra business. Check your corporate travel site to see if your company has such a program. 
  • University Codes. Universities also cut deals with rental car agencies. Both students and alumni can get lower daily rates and other perks, such as a free additional driver. Check the student benefits or alumni deals page for rental car discounts.
  • Frequent Flyer Programs. Some frequent flyer programs can get you a reduced rate on a car rental. For instance, United MileagePlus members enjoy discounts and earn bonus miles when they rent through Hertz.
  • AAA. Being a member of AAA gets you discounts on all kinds of services, including rental cars. Currently, members can save between 8% and 20% off the base rate with Thrifty, Dollar, or Hertz. Check your local AAA website for the latest deals.
  • Costco. This warehouse club offers discounts on a lot more than groceries. One of the many benefits of Costco membership is its discounts on car rentals from Alamo, Avis, Budget, and Enterprise. Visit the Costco Travel site to access the latest exclusive deals.

4. Join a Loyalty Program

Many rental car agencies have loyalty programs that offer various discounts and perks. Most loyalty programs are free to join, and it takes only a few minutes to sign up.  

Joining one of these programs could get you benefits like:

  • Free upgrades
  • The ability to skip the line when you pick up your rental
  • A guarantee the car you sign up for will be available
  • An account that stores your rental preferences for future use
  • Rewards points you can cash in for free rentals or upgrades

And there’s nothing to stop you from signing up for multiple programs. You could join one for each rental agency you use. In fact, if you’ve already reached elite status with one company, you can usually carry over that status when you sign up for another agency’s program as well.

Some agencies, such as Avis and Hertz, also have special programs just for small-business owners. If you own a small business, these programs can give you a percentage off the base price every time you rent a car.

5. Compare Prices

Joining a loyalty program doesn’t mean you have to be loyal to one car rental company. It always makes sense to shop around and see if another company can offer a better price.

You could do that by calling several companies for quotes, but you don’t have to. There are several websites you can use to check rental prices across multiple agencies. 

One leading comparison site is AutoSlash. This free site factors in discounts from AAA and Costco and searches for online coupons to cut your rental price. It even notifies you if the rental rate drops after you book your car. That allows you to cancel it and rebook at the lower price.

However, AutoSlash isn’t the only site in the business. Other places to look for deals include CarRentals.com, Kayak, and Priceline.

6. Check Smaller Car Rental Companies

When you’re comparing prices, don’t limit yourself to the major rental car agencies. Small off-brand agencies such as Fox Rent A Car can offer significantly lower rates than the big companies.

These small agencies aren’t available everywhere, and they may not show up in results from sites like AutoSlash. But if there’s one in your area, it’s worth a call to see if they can beat the big companies’ prices. To find small local agencies, search the Internet for “car rental near me.”

7. Look for Coupon Codes

When you’re searching for rental car prices, do an extra search for coupon codes you can tack on at checkout. With the right code, you can save as much as 50% off the regular rental rate. 

On top of that, you can often combine these coupon codes with other discounts. For instance, they sometimes stack with savings from loyalty programs or frequent flyer programs.

If you shop through AutoSlash, it automatically seeks coupon codes for you. Other places to look for deals include Groupon and LivingSocial. Also, money-saving browser extensions like Capital One Shopping search for coupon codes to help you score incredible deals. 

8. Read the Fine Print

It’s not unusual to see online ads promising car rentals as low as $15 per day. These prices sound too good to be true — and they are. The price you pay is usually much higher due to taxes and fees excluded from the advertised rate. 

You can’t avoid all these extra fees. However, you can at least be aware of them to avoid any surprises. And you can always say no to extraneous car rental fees.

When comparing prices, look at the final price with all taxes and fees included. That way, you know you’re comparing apples to apples. 

9. Prepay

Most car rental companies offer two different daily rental rates: one for prepayment and a higher one for paying when you pick up the car (or simply renting on the spot). For instance, Budget charges rates up to 35% less when you pay ahead.

But despite the savings, prepaying isn’t always the smart move. If you prepay for your car and have to change your plans, you could get hit with a hefty cancellation fee. 

For instance, Alamo charges $50 for canceling a prepaid rental or $100 if you cancel with less than 24 hours’ notice. Canceling a regular reservation is only $50 with less than 24 hours’ notice and free if you cancel earlier than that. 

To avoid these fees, don’t prepay for your rental unless your travel schedule is fixed.

10. Use a Rewards Card

Once you’ve decided which car to rent and where, there’s still one more way to save: by choosing the right card to pay with. Many travel rewards credit cards, such as Chase Sapphire Reserve, offer special perks and discounts on car rentals. 

Depending on the card, you could pay a lower daily or weekly rate or earn extra rewards points. You could also get perks like free upgrades, free rental car insurance, a free additional driver, or a grace period on late returns.

Moreover, if you already have rewards points on one of these cards, you can sometimes get a bonus by cashing them in for travel deals, including car rentals. If your card offers a 50% bonus on travel, you could book a $30-per-day car rental with only $20 worth of rewards.


Final Word

There’s one tip that could potentially save you more than anything else. When planning your trip, think carefully about whether you need a rental car at all. 

In some cases, you can get by without a car. Instead, you can rely on a combination of rides from friends, public transportation, and ridesharing. 

That works particularly well if you only need the vehicle to get to and from the airport. In that case, paying by the ride is probably cheaper than renting a car that will spend most of the trip parked.

Another option is to take advantage of the sharing economy. It’s often possible to get a car through a peer-to-peer service like Turo for much less than a traditional rental. 

These services can offer access to vehicles rental agencies don’t have, such as sports cars or electric vehicles. And you don’t have to deal with any high-pressure sales tactics at the rental counter.

Amy Livingston is a freelance writer who can actually answer yes to the question, "And from that you make a living?" She has written about personal finance and shopping strategies for a variety of publications, including ConsumerSearch.com, ShopSmart.com, and the Dollar Stretcher newsletter. She also maintains a personal blog, Ecofrugal Living, on ways to save money and live green at the same time.