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5 min read Published on October 19, 2022.

Written by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers with the ins and outs of securely taking out loans to purchase the car they want.

Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate since the end of 2021. They are passionate about helping readers gain the confidence to take control of their finances by providing precise, well-researched and well-written information that breaks down complex topics into manageable bites.

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who ensure everything we publish ensures that everything we publish is accurate, objective and reliable. The loans reporters and editors focus on the points consumers care about the most — the various kinds of loans available and the most competitive rates, the most reliable lenders, the best ways to pay off debt , and many more. So you’ll be able to feel secure when making your investment.

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If you’re on holiday and desire the convenience and freedom of a car while you explore or need a car while yours is at the shop most likely, you’ll rent a car at some moment in the future. There were 1.8 million rental vehicles in service in 2021 . Prices vary based on the kind of car you lease, the rental car firm you select and the location where you lease the car. Understanding the factors that affect the price will help you budget for the cost. Cost of a typical car rental The expected cost to rent a car varies according to factors such as location, car type , and rental service. However, the cost average for mid-October 2022 was $81 per day . To calculate your expected cost contact Hertz, Enterprise, Avis or any other rental company you’re thinking of using to prepare for the price. Factors that impact the cost of renting a car. Several factors influence the price of your rental — both in and outside your control. You can save money by understanding what impacts cost. Car type when selecting a rental car, the first question most renters ask is how much space they need. Car rental companies classify their vehicles according to their size. The smallest cars are typically the least expensive and the smallest rental companies provide. They can accommodate one or two people, along with their luggage. The compact or intermediate models offer more space than economy cars typically through additional space inside the trunk. Intermediate cars can hold up to four passengers and have a limited volume of bags. The standard vehicles that have full-sized back seats can accommodate four adults. They also have plenty of trunk space, which makes them a great option for families with lots of luggage to bring along. Luxury cars are high-end vehicles that range from sporty convertibles, to big SUVs, and vans. In the majority of cases, the daily rental fee will increase with the size and class of the vehicle or truck. However, sometimes rental companies offer specials on certain types of vehicles and, in particular, when they are able to have a large number of vehicles of them in stock. For example, if the company has a limited amount of economy vehicles available to rent during a particular weekend, they might offer a discounted rate on the standard cars. Below are the lowest prices for daily use for various types of vehicles, as per Kayak. Type of vehicle

Approximate capacity

Least expensive rate per day


2 adults, 2 bags



4 adults, 2 bags



5 adults 3 bags



5 adults, 3 bags


Full size

5 adults 2 bags


Full-size SUV

5 adults 2 bags



5 adults, 5 bags



5 adults, 5 bags


Kayak in October 2022. Location As with other goods as well, the prices change depending on demand and supply. A lot of people get better car rental rates close to the heart of the city, instead of the airport. The rental rates also differ in different regions of the country. Tourist areas that are heavily populated may have lower rental fees than other areas due to the increasing competition. They may also have higher rates during the peak season where demand is extremely high. Location

Average rental cost per day







Las Vegas


Los Angeles




New York




Kayak in October 2022. The driver’s age renter’s age has a significant impact on the cost. If the renter is younger, higher the cost because young drivers increase risks to rental businesses. Many rental companies do not even rent to those younger than the age of 20. Renters may be charged extra fees for renters who are young. According to the state, these fees can be anywhere from $40-$65 per day. Take into consideration these costs in determining the driver of your rental. Certain states permit fee for drivers of certain age brackets. For example, renting through Enterprise in Michigan comes with an additional $40 daily charge for drivers aged 18 to 20 years old and $19 for daily drivers between 21 and 24 years old. Young renters in New York can expect to pay more than $64.50 because of their age. But not every rental agency charges these fees. Consider both the daily cost as well as additional fees when you decide the rental provider. How can you get the best deal on your rental car While the cost of renting a car is based on a number of factors but there are several options you can take to get a little extra cash. Comparison shopping You can save money on your next car rental by comparing. The prices vary from one rental agency, so a little legwork could land you a lower price. Comparison websites like Priceline, Expedia, AutoSlash and Kayak help you compare rental car quotes. Visit the websites of the rental agencies to ensure that you’re getting most affordable price for the vehicle. Fill up the tank Make sure to fill up the gas tank prior to returning your rental car to the rental company. You’ll save money on refilling. Plan your reservation early. Booking your rental car prior to the time of your reservation will allow you to choose the best vehicle, avoid lengthy lines and potentially save money. This is especially important if you intend to travel on a long holiday. Do not add ons prior to receiving the keys to your car, you’ll likely receive a number of additional options. These could include GPS, toll plan, accessibility to XM radio or the option of car seat. Avoid these options if can to save money. Another costly option is often offered when you reserve or collect the car. It can add an additional 15 to $30 per day, however, it can save thousands of dollars if there is an incident, or the car is stolen. The four kinds of typical rental car insurance include: Loss-and-damage waiver (LDW) also known as collision damage waiver (CDW) will provide coverage in the event that your car is damaged or stolen Supplemental liability protection: protects you from liability in case you cause damage to property or vehicles. Personal accident protection covers medical expenses for you and your passengers (if necessary) in the event you get into an accident Personal effects coverage: pays the cost of items that are taken from the car rental These protections may already be in place or be part of your existing homeowners or auto insurance policy. Certain policies have limitations, however you should check with your credit card company or insurance company. Hidden fees and additional costs Car rental companies also charge hidden charges that impact the cost of the rental. They build some of these charges into the cost of the rental. Others may appear on statements several months after the rental period. Renting a car at the airport will cost more than renting from an off-site location. The reason is that the airport has fees, such as an airport concession fee and an expense for customer facilities which the rental car provider is then able to pass on to the consumer. Some companies place an authorization hold on the customer’s credit or debit card. This charge, which can range from $150 to $500, provides the rental car company with some protection if the renter damages or fails to return the vehicle. The rental car company will release the money within a few days of receiving the rental vehicle back in acceptable condition. A lot of companies charge a cancellation charge to renters who make reservations less than 24 hours before the rental. If the renter paid in advance, the company will refund the deposit less the cancellation fee. Renters who damage the exterior or interior of their vehicle are required to pay for the repairs . Unwary renters may end having to pay for damages caused through previous motorists. Make sure you thoroughly examine the vehicle prior to taking it off the property and take photos of any visible damage and alert an employee. Most rental agencies charge a daily fee to add drivers to the rental contract. The cost is determined by the rental agency and the state. Modifying the conditions of the rental agreement by altering or expanding it may also come at additional cost. The amount you’ll be charged for will vary, and you could be charged an additional daily fee. However, being aware of these hidden charges helps renters understand why the total rental costs are higher than the rental advertised price There is typically nothing that you can do to reduce these charges. The bottom line Rental costs for cars vary based on the rental agency, car type, location and age of the driver. You’ll also find that some markets are far more expensive than other markets. There are ways to lower your costs such as buying around, making bookings early and skipping additional charges. Make sure you read the rental contract’s fine print to avoid any unexpected costs. Find out more


Authored by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers to navigate the ins and outs of securely taking out loans to purchase a car.

Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since the end of 2021. They are dedicated to helping their readers to control their finances with concise, well-researched and well-researched content that break down complex subjects into bite-sized pieces.

Auto loans editor

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