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Consumer Reports Money Adviser
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August 2007
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Drive a hard bargain on car rentals
Search for the best deal you can find, and watch out for add-ons that boost your cost


If you think finding the lowest airfare is tricky, try getting the best deal on a rental car. These days, car-rental rates change frequently, and assorted fees and taxes can drive your bill 30 percent or more above the base rate. That's why it's important to nail down the lowest rate when booking your trip.

It can take some work to find the best deal. Bargain hunters willing to invest the time should go to a travel Web site like www.travelocity.com or www.expedia.com to search for car rentals by city, dates, and vehicle size. Take the three best deals you find, then go to the companies' Web sites or call their toll-free numbers to ask for their best rate. If they pressure you to book, say you are still finalizing plans. Be sure to ask for the direct phone number of each company's local office. Then call the local office of the company with the lowest price and see if you can negotiate a price that's even lower. This approach often results in cheap, cheaper, and, finally, the cheapest price.


More ways to save

Here are some other tips for saving on your next car rental.

  • Shop by price. Remember that you are renting a car, not a company. All of the majors rent new or nearly new low-mileage vehicles. Don't care whose car you drive? Anne Banas, executive editor of www.smartertravel.com, suggests that you consider www.hotwire.com, a discount-travel site that offers deals without revealing the name of the rental agency until after booking is completed.

  • Forget labels. Some rental outfits--such as Advantage, Fox Rent A Car, and Midway--aren't name brands but offer good deals, says Neil Abrams, a consultant in Purchase, N.Y., on the car-rental business. Go to www.carrentalexpress.com, www.carrentals.com, or similar Web sites to find some of these independent agencies.

  • Ask about taxes and fees. Car-rental agreements might include extra costs such as an airport-concession fee (the rent or royalty paid to the airport), excise tax (the costs associated with registering a vehicle), and, of course, sales tax. In some areas, additional surcharges are levied on car rentals to help finance municipal projects like convention centers, sports arenas, and mass-transportation projects. Before you make your reservation, get a firm, bottom-line quote that includes all extra charges.

  • Beware of other charges. You'll be penalized if you turn in the car late. The clock starts ticking from the moment you take the keys. If you show up after your scheduled return time, you could be stuck paying for a full extra day. (Sorry, but the one- or two-hour grace period is now often only 30 minutes.) Also, expect to pay an additional charge for renting a car in one location and dropping it off in another. While a few routes may incur no penalty, most do. And Abrams says to avoid paying for "bells and whistles, like a GPS unit or satellite radio, you don't need."

  • Ask for discounts. Always inquire if the rental agency gives discounts to members of AAA, AARP, or warehouse clubs like Costco or Sam's Club. Most of them do. Also watch for coupons or offers in travel magazines or at warehouse-club checkout areas. A discount might equal one day's rental or an upgrade.

  • Go off-site. It's often cheaper to rent from a branch office that isn't at the airport. Ask your hotel if there's one nearby. Or type the hotel's street address into the car-rental company's Web site to find branch offices. Some rental companies, such as Enterprise, will pick you up and drop you off--usually within a specified mile radius--at no charge.

  • Book small, hope big. Always reserve the smallest vehicle you can tolerate. It's a good bet you'll be bumped to a bigger model free, because most rental companies have larger fleets of intermediate- and full-sized cars. Just don't let the agent talk you into paying extra for the upgrade. If your teeny Geo isn't available on time, you might be able to enjoy a spacious Lincoln Continental for the same price.

  • Resist the pitch for insurance. The car-rental agent will probably attempt to persuade you to buy insurance to cover any damage to your rented car. But your own automobile insurance policy might already provide protection. Most private policies cover rented cars as long as the person who signs the rental agreement is behind the wheel. If you have any doubts, check your policy or call your agent. Some credit-card companies also pay for rental-car coverage as a benefit for premium cardholders. Just make sure you use that card when you book your rental.

  • Inspect your car before departure. Make sure that the rental representative sees every significant nick, scratch, or dent on the vehicle and notes them on your rental agreement. Otherwise you could be held liable for damage that was caused by a previous customer.

  • Gas up. If you don't fill the tank before returning the car, you could pay dearly--two to three times more than at the pump--for the company to do it. As you are driving away from the rental-car lot, jot down the locations of nearby gas stations so you'll know where to refuel just before you return the vehicle.