Key takeaways
- The total cost of renting a vehicle will be influenced by the vehicle size, the amount of time you rent and the location of the rental.
- The average cost per day for a four-day rental is $44, according to Hopper.
- To secure the best car rental deal, it is smart to book ahead of time, avoid additional add-ons and shop around with different rental car companies.
Whether you’re going on a vacation or road trip, or you want to try a specific vehicle before deciding which one to buy, renting a car can make a lot of sense. That said, you’ll want to prepare yourself for the costs involved in renting a car ahead of time — especially if you’re renting during a peak travel time or you want to have a premium vehicle.
The cost of renting a vehicle varies depending on the type of vehicle, the rental company and where you rent the car. On average, you can spend anywhere from under $50 a day to $100 or more. Understanding how each factor affects the price will help you budget for the expense, so read on for an overview of facts that impact rental car costs and ways to save.
Car rental costs by need
Renting a car for a vacation versus a business venture carries different levels of excitement and cost. Considering where these differences fall is especially important as rates of inflation have made travel — for leisure or your day job — more expensive.
You might have to spend more on a larger vehicle if you are embarking on a family trip, whereas you will likely just need room for yourself and your luggage if you’re renting a car for business. Along with this, cities with more tourism and attractions may have higher daily rates than other regions. Keep these factors in mind when budgeting for rental costs.
Factors that impact rental car costs
The expected cost of renting a car depends on factors such as location, car size, time of year and the rental company you choose. Hopper’s 2025 Consumer Travel Index and 2025 Outlook shows that the average cost per day for a rental car came in at around $39 in January. To calculate your expected cost, compare prices through top rental companies like Hertz, Enterprise or Avis. You may also want to consider checking deals available through a travel credit card or warehouse stores like Costco.
Location
You may find better car rental deals near the center of the city instead of the airport, but keep in mind that rental fees also vary in different regions of the country. Tourist areas could have lower rental fees than other locations because of the increased competition — but they may also have higher fees during popular seasons when demand is high.
| Location | Average rental cost per day |
|---|---|
| Fort Lauderdale | $38 |
| Las Vegas | $38 |
| Los Angeles | $38 |
| Miami | $35 |
| Orlando | $38 |
Source: 2025 Consumer Travel Index and 2025 Outlook, Hopper
Car size
When choosing a rental car, the first question most renters ask is how much space they will need. Car rental companies classify vehicles according to size.
- Economy cars are usually the least expensive and smallest rental companies offer. These vehicles have room for one or two people, along with their luggage.
- Intermediate or compact cars offer more space than economy cars, usually through extra room in the trunk. They can typically accommodate up to four people and a minimal amount of luggage.
- Standard vehicles with full-size back seats have room for four adults. They also offer plenty of trunk space, making them a good choice for families that have a considerable amount of luggage to bring along.
- Luxury vehicles are premium vehicles that range from sporty convertibles to full-size SUVs and vans.
In most cases, the daily rental fee increases with the size and category of the car or truck. However, sometimes rental companies offer specials on vehicles in certain categories, especially if there are plenty in stock.
For example, if a company has a limited number of economy cars available to rent for a certain weekend, it may offer a discount on standard vehicles.
Here are the lowest daily rates in Los Angeles from July 11 to July 14 — one of the more expensive times of the year to rent a car — for different car sizes, according to Kayak:
| Car type | Approximate capacity | Least expensive rate per day |
|---|---|---|
| Economy | 2 adults, 2 bags | $13 |
| Compact | 4 adults, 2 bags | $14 |
| Intermediate | 5 adults, 3 bags | $15 |
| Standard | 5 adults, 3 bags | $15 |
| Full size | 5 adults, 2 bags | $15 |
| Compact SUV | 5 adults, 2 bags | $21 |
| Intermediate SUV | 5 adults, 2 bags | $24 |
| Full-size SUV | 5 adults, 2 bags | $54 |
| Minivan | 5 adults, 5 bags | $74 |
| Premium | 5 adults, 5 bags | $62 |
Source: 2025 Consumer Travel Index and 2025 Outlook, Hopper
Time of year
The time of year you choose to rent also matters. Peak travel seasons, like summer, will have much higher daily rates than off-peak travel seasons. Your location may also affect this — rates may be higher in Florida for summer travel, but if you plan on leaf-peeping in New England, you may pay more in the fall than you would at other times of the year.
Age of driver
The renter’s age greatly influences the cost. The younger the driver, the higher the price. This is because young drivers are seen as a higher risk by rental companies. Many rental companies do not even rent to those under 20 years old, although most have policies that limit rentals for anyone under 25.
Rental companies may also charge additional fees for young renters. Depending on the state, these fees can range from $15 to $65 per day. Consider these higher prices when determining the driver for your rental.
For example, renting from Enterprise in Michigan comes with an additional $36.50 per day fee for drivers 18 to 20 years old and $15.75 per day for drivers between 21 and 24. Young renters between the ages of 18 and 20 in New York can expect to pay an additional $64.75 due to their age.
Not every rental company charges these fees. Consider both the daily cost and additional fees when choosing where to rent from.
Bankrate tip
To rent a vehicle from any of the major rental car companies, you must be at least 21 years old. However, many rental car companies charge an additional cost for drivers under 25.
How to get the best deal on your rental car
Although a rental car’s price is based on a range of factors, you can still take a few steps to drive away with some extra cash in your pocket.
Comparison shop
Shopping around can save you money on your next car rental. Prices often vary by rental agency, so a little legwork could land you a much better deal. Comparison sites like Priceline, Expedia, AutoSlash and Kayak make it easier to compare rental car quotes. If you’re a Costco member, you may also find that Costco Travel has some good rental car deals. Finally, check your credit cards — especially your travel cards — for options and potential discounts.
Book early
Booking your rental car ahead of time allows you to get the right vehicle and potentially save money. This is especially important if you intend to travel around a major holiday. If you’re able to book a car without any cancellation fees, booking early can also help you “lock in” a price with the option to cancel and rebook at a lower price later if you find one.
Skip add-ons
Before receiving the keys to your rental, you will likely be offered several add-ons. Options may include a GPS, toll plan, access to XM radio or even car seats. If you want to save money, it’s best to skip these options.
Rental car insurance is another costly add-on often presented when you reserve or pick up the vehicle. It can add $15 to $30 per day to the bill but could save you thousands if you’re involved in an accident or the car is stolen.
These protections may already be available through your credit card or current auto or homeowners insurance policy. Some have limitations, though, so be sure to confirm how they work with your credit card issuer or insurance providers.
Hidden fees and additional costs
Car rental companies also charge hidden fees that affect the cost of the rental. Some of these fees are built into the price already, whereas others may appear on statements several months after the rental period.
- Renting at the airport: Renting a car at the airport may cost more than renting at an off-site facility. This is because the airport charges fees like an airport concession fee and a customer facility charge that the rental car company passes on to the consumer.
- Credit card holds: Some companies place an authorization hold on the customer’s debit or credit card. This charge, which ranges from $150 to $500, gives the rental car company some protection if the renter damages or fails to return the vehicle. The company releases the funds within a few days after receiving the rental car back in acceptable condition.
- Fuel costs: Always stop to top up the gas tank before returning your rental car to the agency. You’ll avoid additional fees for refueling each time you do this.
- Cancellation fees: Many companies charge a cancellation fee to renters who cancel their reservations less than 24 hours before the rental. If the renter paid in advance, the company would refund the payment minus the cancellation fee.
- Vehicle damage: Renters who damage the interior or exterior of the vehicle must pay for the repairs. Unwary renters may end up paying for damage caused by previous drivers. To avoid this situation, you should thoroughly inspect the vehicle before driving it off the lot, take pictures of visible damage and alert an employee.
- Adding drivers: Most rental agencies charge a daily fee to add drivers to the rental contract. The cost is determined by the state and rental agency.
- Amending terms: Changing the terms of the rental agreement by modifying or extending it may also come at an added cost. The amount you’re charged will vary, and you may pay a higher daily rate.
Although knowing about these hidden fees helps renters understand why the total rental fees cost more than the advertised rental price, there is usually little that can be done to avoid them.
Bottom line
Rental car costs vary by rental agency, car type, location and driver age. You’ll also find that some markets are far more expensive than others. However, there are ways to lower your costs.
Just as you would when comparing auto loans, shop around, don’t put off your booking and skip additional add-ons. Finally, be sure to read the rental agreement’s fine print to avoid incurring any unexpected costs.
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