If your next vacation includes renting a car, you might want to budget more than you think you need. While they've stabilized in recent years as supply improves, car rental prices can rise sharply, especially during peak travel times when demand is high. There are also fees, taxes, and other costs, meaning what you pay for your rented ride might be more than you originally expected. But with a little research and smart planning, there are ways to save and rent a car cheap.
What is the average rental car cost?
The average cost of renting a car from one of the 8 major rental brands in the US ranges from between $400 and $6001—a cost that's been more or less holding steady according to CPI data that shows a -0.1% decline in car and truck rental prices between April 2025 and April 2026.2 But rental car prices can vary widely depending on a range of factors, including the rental location, the time of year, the car type, and when you book. Also, certain car amenities and optional add-ons can increase the daily rate, as can the driver's age (the younger, the pricier) and whether there are additional drivers.
Factors that affect how much it costs to rent a car
Timing is a big factor in car rental prices. So is the location you're renting from and the options you choose. Here are some of the major elements that influence car rental prices:
- Car class. With choices ranging from no-frills economy cars to plush luxury vehicles, it's no wonder car class has a large impact on a car rental price. If you're looking for a cheap car rental, consider smaller vehicles or ones that offer only the features you want compared to, say, a large SUV with all the bells and whistles.
- Amenities. Want GPS or Bluetooth® connectivity in your rental car? Either is likely to drive up the price, whether you opt to add these features to a lower-class model or rent a higher-class model that comes standard with them.
- When you need the car. A long weekend rental might cost you more than, say, a midweek booking. Or, if you're in town for a holiday or big annual sporting event, an influx in travelers will almost certainly drive up demand—and prices. Rates tend to rise during the high-travel summer months at beach locations and during winter months at destinations like ski resorts.
- When you book. Rental car pricing is highly dynamic, and the best time to book can vary. However, renting a car may be one of the few occasions it pays to wait to make a reservation—as long as you aren't married to a specific type of rental car. You might be able to find cheaper prices closer to your travel dates if demand is low and rental car agencies are motivated to hire out unclaimed inventory.
- Driver age. If you're under 25 years old, be prepared to shell out more money to rent a car. Rental car companies typically add surcharges for drivers under 25 (if they allow rentals within that age group at all) because drivers that age have less experience behind the wheel. Policies vary by company—some charge daily and others by the rental—but expect to pay $25 per day and up. (Tip: An auto club membership may exempt young drivers from the surcharge.)
- Location. Car rental rates in various cities across the US can vary—dramatically in some cases (just see below). Prices can vary within individual cities as well. Renting at an airport location is usually more expensive than off-airport locations—often adding nearly 20% to rental costs due to additional fees and taxes.3
- Where you plan to return the car. Most, if not all, rental car companies will charge more if you return your rental car to a different location than where you picked it up.
How much does it cost to rent a car by class?
The type of car (or van, SUV, or truck) you choose greatly affects your overall rental bill. A minivan, for example, could cost significantly more than a midsize car. The following table shows the average base price per day by car class at Newark (NJ) Liberty International Airport. Here's how the classes stack up by space—for passengers and their bags—and daily cost:
| Car class | Number of passengers | Baggage capacity | Average base rate per day at EWR |
|---|---|---|---|
| Economy | 4-5 | 2 | $55–$75 |
| Compact | 5 | 2-3 | $55–$80 |
| Intermediate/midsize | 5 | 3 | $60–$85 |
| Standard | 5 | 3 | $60–$90 |
| Full-size | 5 | 4 | $65–$95 |
| Minivan | 7-8 | 4-5 | $150–$250 |
| Compact SUV | 5 | 3 | $65–$95 |
| Full-size SUV | 7 | 4-5 | $90–$140 |
| Luxury | 5 | 4 | $$80–$150+ |
Table reflects average daily costs by car class at Newark (NJ) Liberty International Airport locations based on pricing from major rental companies (Enterprise, Hertz, Avis) during 2025–2026. Prices include estimated taxes and fees and reflect typical market ranges rather than fixed quotes. All rental prices assume a week-long rental with return to the same location.
How much is a rental car in popular destinations?
Just as with real estate, a key factor in rental car prices is location, location, location. To give you a sense of how much location affects car rental prices, here are representative average daily costs for economy car rentals across major US airport markets:
| City (airport) | Typical daily rental price (economy base rate) |
|---|---|
| Atlanta (ATL) | $55–$75 |
| Boston (BOS) | $55–$80 |
| Chicago (ORD) | $60–$85 |
| Denver (DEN) | $65–$90 |
| Las Vegas (LAS) | $70–$95 |
| Los Angeles (LAX) | $75–$100 |
| New York City (JFK) | $55–$85 |
| Orlando, Florida (MCO) | $60–$85 |
| Seattle (SEA) | $65–$90 |
| Tampa, Florida (TPA) | $55–$80 |
Pricing differences reflect demand, tourism patterns, and local taxes. Prices include estimated taxes and fees and reflect typical market ranges rather than fixed quotes.
Hidden rental car costs
The price that pops up when you start your rental car reservation isn't the end of the story. You're likely to shell out more for extra fees, taxes, and other costs. Here are some additional charges you need to budget for:
- Equipment add-ons, like GPS, subscription radio, and child safety seats
- Insurance, but you may not need to buy this through the car rental company. Your personal auto insurance coverage might extend to rental cars. Your credit card carrier might also cover you if you pay for the rental using that card.
- Roadside assistance, though your credit card might offer this, too
- Extra driver fee—yes, you pay extra if more than 1 person will be behind the wheel during your rental period
- Gas. Prices vary across states, so do some research to calculate how much you'll spend every time you fill up the tank in your vacation locale.
- Tolls. Again, research your driving routes and what drivers are charged for taking them.
- Even if you opt out of all the extras, you still have to account for charges that include state and local taxes, which for some rental locations can add more than 20% to the total cost, and a mandatory vehicle licensing fee, which helps the company cover its costs for registering the car. If you pick up a car at an airport, the charges could potentially increase your daily rate by 25% to 50% or more, depending on the city, from the original quoted base rate.4
How to keep your rental car cheap
If you're hoping to reduce your car rental costs, try some of the following strategies:
- Keep it simple. Don't let that beautiful convertible lure you into spending more. Shop for one of the more affordable car classes (like economy or standard) and skip unnecessary add-ons. For instance, use your phone for navigation, so there's no need to pay for GPS.
- Pay now instead of later. Some car rental companies offer a discount on the base rate if you pay when you book, rather than when you pick up the car. If you pay in advance, make sure you read all the terms and conditions for updates and cancellations so you don't get stuck paying for a car you won't use if your plans change.
- Book early, then check back later. Car rental companies suggest you reserve a ride early, especially during a busy travel season or a big event, to increase your chances of having a car. But if you book with a company that offers free cancellations, check back 1 to 2 weeks ahead of your trip to discover if prices have dropped. If they have, cancel the first booking (if you've triple-checked, cancellations really are free) and make a new, cheaper one.
- Shop around. It's work, but the only way to make sure you're getting the best deal is to check prices at various car rental companies, as well as on travel price comparison sites. Keep track of each company's promotions, including email sign-up incentives and loyalty programs, to calculate where you can snag the best deal. Also, compare airport and off-airport rental prices. Renting from a nearby neighborhood location could spare you costly airport fees.
- Consider a car-sharing service. Car rental companies aren't the only game in town these days. There are car-sharing apps that let you rent locals' vehicles. This option might be particularly useful if you want a minivan or other car class that is less commonly found at traditional car rental places. Just read the fine print: These apps may have extra fees, which could make it pricier than renting from the big guys.
- Cash in your points. Do you have credit card points racked up? Find out if you can apply those points toward a rental. You may be eligible for a heavily discounted ride.
- Check your personal insurance coverage. We said it before, but we'll say it again: Your personal auto insurance coverage may extend to rental cars, so it's worth reviewing your policy. Similarly, your credit card carrier might also cover you if you pay for the rental with that card. Look into this before you buy coverage you don't need.
- Skip the rental entirely. Take a good look at how much travel you need to do by car. If you can get by with public transportation or rideshare apps, you might save money on your daily transportation costs by not renting.