Experts share their tips and tricks on how to navigate this summer’s “carpocalypse.”
It’s summer, which means road trips are in season — but this year’s drives will look a little different (and no, we’re not talking about the pandemic). Gas prices across much of the U.S. are rising, and rental cars can be hard to find — not to mention expensive. We’re in what Scott Keyes from Scott’s Cheap Flights calls a “carpocalypse.”
“Historically, flights were expensive and arduous for travelers, and the car rental was the thing you could put off to the last minute. Now, the situation is largely reversed, where flights are cheap and plentiful, and car rentals in a lot of places are unlike anything we’ve ever seen before,” Keyes told GoTravelDaily.
Here’s what happened: During the onset of the pandemic, rental car bookings dropped, leaving companies to scramble. To stay afloat, “they took hundreds and thousands of cars and sold them off on the used car market,” explained Keyes. This summer, with travel — at least domestic trips — back and as busy as ever, rental car companies are trying to replenish their fleets, but the lack of vehicles is leading to increased demand and higher prices.
Historically, one could expect to pay approximately $50 per day for a car rental. However, a recent search Keyes conducted showed $373 a day for the cheapest vehicles on Maui.
To help you navigate the “carpocalypse” and avoid paying $373 a day for a vehicle, we chatted with Keyes and Hopper economist Adit Damodaran to get some insider tips on how to save on car rentals this summer.
Reserve a Car Early
The days of waiting until the week before your trip to reserve a car rental are gone. As soon as you know you’ll need a car (or might need one), it is advisable to book it. With low inventory and high prices, this action will not only help you secure a deal but also ensure you have a vehicle when you need it. “We advise travelers to book a car early, at the same time as their flights, to ensure they can lock in a car for their trip,” Damodaran noted.
Check Off-Airport Rental Locations
While picking up a rental car directly at the airport may seem convenient, it often comes with the highest prices. “Almost always, there are dozens of other rental locations within five miles of the airport where you can find a car for much cheaper,” Keyes stated. This could mean “saving $150 to take a five-minute taxi ride to a nearby rental location.”
You may also want to consider renting a car at a less popular nearby airport. “Many larger international airports are seeing a high demand for car rentals. We recommend checking smaller nearby airports that may have inventory available near your destination. For instance, check out Fort Lauderdale Airport rather than Miami International,” continued Damodaran.
Utilize Costco Travel for Rentals
Travel may not immediately come to mind when you think of Costco, but your perspective might change after checking out their rental car rates. “I’ve found that while there’s no single place that’s always cheapest for flights or hotels, with car rentals, there’s generally one site that’s [consistently] the cheapest — and that’s Costco Travel,” expressed Keyes. The Costco booking system searches through the major players (Avis, Budget, Enterprise, Alamo), providing lower rates and certain perks (like a free additional driver and potential cancellation options).
Check Prices on Hopper
Typically, if you’re under 25 years old, you face additional fees to rent a car. However, booking through Hopper or Kayak could help evade these extra costs. Damodaran emphasized, “If you’re under 25, you can book most deals through Hopper without any penalty charges.”
Reserve and Cancel Later
The great aspect of rental cars is that cancellations typically occur without penalties (within a specified timeframe). With elevated rental rates, it’s advisable to reserve now with the understanding that you may need to alter your dates or cancel entirely later on. Keyes insists that this is a smart strategy: “One of the big benefits of car rentals is that they are generally free to cancel. You can be more speculative and lock things in early on.”
Track Prices with AutoSlash
Thanks to rental car companies’ flexible cancellation policies, you have the opportunity to monitor rates and cancel your booking if you discover a better deal. Keyes relies on AutoSlash to track his reservations and notify him of any price drops. “Say you reserved [a car] for $100 a day. If the rental prices in that agency drop to $80 a day, you’ll get an email and you can cancel the $100 reservation and book the $80 a day option instead,” he shared.
Consider Turo for Rentals
Turo functions as the Airbnb of car rentals, enabling you to rent vehicles directly from local owners at your destination. Keyes elaborated, “The cars and their owners are rated by previous users, so you have an idea of what to expect. The best part? The rental prices are generally much lower than those at traditional rental car companies.”
Look for Rentals at Dealerships
Car dealerships often have car rentals available — though it’s not widely publicized. “Dealerships usually maintain a fleet of cars that they quietly rent out — it’s not super well known,” Keyes remarked, adding that these rentals are often offered at a flat rate.
Rent a Moving Truck as a Last Resort
In desperate times, unconventional solutions often emerge. If you absolutely need a rental car and no options are available, consider the creative approach taken by tourists in Hawaii who rented U-Hauls to get around. “That’s one of those creative solutions that I never would have thought about,” Keyes remarked. “Flat rate prices, and they can serve as an alternative if you just need four wheels to get you around on vacation.”
Evaluate Rental Car Insurance Options
Before you hop in your rental car, agents typically present various insurance options: liability, collision damage waiver, personal accident, and personal effects. According to WalletHub, rental car insurance averages around $61 a day, in addition to rental fees.
However, many individuals are unaware that they might already have coverage through personal car insurance, health insurance, or credit card benefits. Keyes recommends being familiar with what’s covered, as doing the research ahead of time could lead to significant savings at the rental counter.
