Save Money On Your Next Rental

Renting a car is often expensive, sometimes frustrating, but essential when you’re traveling. However, there are ways to reduce the cost of car rentals, whether you’re traveling locally or abroad. Here’s how you can get the best rates and save some cash.

The sharp rise in rental car prices since pre Covid times is due to a combination of factors. Many rental companies sold off large portions of their fleets during the pandemic. Now, as demand skyrockets with everyone hitting the road again, supply chain issues have made it difficult for companies to replenish their fleets. This imbalance between supply and demand is driving up rental costs.

So, how do you navigate this new landscape of higher prices?

Like flights and accommodation, car rental pricing is dynamic. You’ll save money by booking well in advance or traveling during off-peak times. While major rental companies like Avis, Hertz, and Europcar often provide newer cars, cheaper agencies such as Budget and Thrifty may offer vehicles that are a few years older with more kilometres, but they often come with better customer satisfaction scores, according to canstar’s recent review.

When picking up your rental, consider whether you really need an airport pickup. Airport rentals often incur additional “premium location” fees, which can make them more expensive than rentals from city locations. If possible, opt for a non-airport location to save on fees.

It’s usually cheaper to return your rental car with a full tank, as fuel prices charged by rental agencies are often higher than at local petrol stations. Some rental agencies offer prepaid fuel options, which can reduce the hassle of finding a petrol station at the last minute, just make sure the price is competitive.

Before you hit the road, check for toll road fees. Rental companies may charge up to $40 for toll usage, so it’s worth understanding the costs before starting your trip.

Some car rental agencies offer discounts through membership programs. For example, Sixt has an exclusive partnership with several Australian automotive clubs, including the NRMA, which can give members up to 25% off rentals. Thrifty also offers a 15% discount to members of its loyalty program. Always review the benefits before signing up to ensure you’re getting genuine savings.

Many fully prepaid car rentals include collision damage waivers and third party insurance, but if you opt out of this, expect to pay more at the counter. Additionally, travel insurance and some credit card providers may cover rental car excess charges, so check your policies beforehand to avoid paying for extra insurance. If your insurance doesn’t cover rental excess, consider reducing your excess when booking, though this can add significantly to the cost.

You can also explore zero excess protection packages. Some companies, like DriveAway, offer refund excess protection for as low as $15.50 per day, which is often cheaper than rental companies’ packages but involves extra paperwork.

Typically, round trip rentals are cheaper than one way rentals. However, there are times when car rental agencies may offer deals to relocate vehicles. For example, in the lead-up to peak season in Cairns, suppliers may waive or reduce one way fees for cars rented in Southeast Queensland or Sydney. If you’re flexible with your route, compare prices in both directions and choose the more affordable option.

If you’re staying in a city and only need a car occasionally, car sharing may be a cheaper alternative. Services like GoGet, Flexicar, and Uber Carshare offer membership based programs where you can rent cars for a few hours or a day. These services are ideal for short trips and can be more cost-effective than traditional car rentals.

  • GoGet: Australia’s largest car-sharing network with cars available in 20+ areas. Prices start at $12 an hour or $104 a day, including 120 free kilometers.
  • Flexicar: Similar to GoGet, with rates starting at $12 an hour or $95 a day.
  • Uber Carshare: Peer to peer car rentals starting at $5 an hour or $25 a day, plus per kilometre fees.

For international trips, pay for your car rental in Australian dollars before your trip to avoid local taxes, some countries charge as much as 20% in additional fees if you pay while overseas. It’s always worth paying upfront to lock in a lower price and avoid surprises later.

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