How to get cheaper car hire in 2024

Car rental prices soared last year as increased demand met an acute shortage of new cars. Then as new vehicles finally rolled in, prices plummeted again - but only in some places. 

It’s a confusing picture, and prices are likely to continue to fluctuate for some time. But for the savvy traveller, there are ways to save and get cheaper car hire.

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1. Book car hire early

Never leave booking your car hire to the last minute. You should get your rental locked in at the same time as booking your holiday, especially true if you plan to travel during peak periods or in a high-demand country like Italy, Portugal or Spain. 

But with prices volatile, it’s crucial that you book with a car rental provider or broker that offers free cancellation (many allow it up to 48 hours before pickup). Then, as your trip gets near do a quick check of current prices. If they’ve dropped, then you can cancel and rebook at the cheaper rate.

2. Pay for car rental in advance

You should also pay up front. When you book online, most rental companies give you two choices: pay now, or pay at location. It is usually around £30-£50 cheaper per week to pay when you book.

It’s also safer. Guaranteeing a rate helps guard against unscrupulous companies cancelling your booking in order to take a more valuable one as rates rise. We’ve already heard from one Which? reader whose booking was cancelled last minute, leaving them to pay turn-up prices (three times the original rate) at the airport.

And if you book with an operator that offers free cancellation, you can always cancel and rebook at a later date if prices go down.

3. Book with the best car hire company...

Some providers have taken advantage of market volatility to ramp up prices to extortionate levels. Which? vets car hire companies and brokers, not just on the customer experience, but also on their pricing transparency, so you can trust them to offer a fair price.

There are two car hire companies that are Which? Recommended Providers (WRPs) - AutoReisen and Cicar. Both specialise in car hire in the Canary Islands. Unfortunately no other providers made the grade to be a WRP, but Alamo, Enterprise and Hertz scored well in our survey.

See the full results of our annual Best and worst car hire companies survey

4. ...or use a small/local car hire firm (via a trusted broker)

Local agents are usually cheaper than the big brands. They have fewer overheads, lower marketing costs, and  offices in cheaper locations (outside of the airports and main transport hubs).

When we compared prices for a week’s hire at October half term in Tenerife (21-28 October 2023), global brands (Avis, Europcar, Hertz, Sixt) averaged £143 for the cheapest car. But AutoReisen, which only operates in the Canary Islands, was just £122. Not only is it cheaper, but it’s a much higher-rated brand that includes zero excess insurance, car seats and an additional driver at no extra charge. 

We would never tell you to book direct with a company you haven’t heard of, though. Book with a trusted broker like Zest Car Rental instead. Zest regularly vets its car hire companies, only partnering with those that maintain consistently high standards of customer service.

Read the full Zest Car Rental review

5. Avoid 'too good to be true' car hire prices

If a company is offering rates that look too good to be true, they probably are. Sneaky charges are a common issue with some companies. 

In our recent survey, one in ten people told us they were charged more than they had been quoted. The most common disputed or unexpected charges were for damage to the car and refuelling, but others included admin fees, an over-70s surcharge, extra mileage, and late (and even early) drop-off. 

Book with a Which? Recommended Provider to help avoid bill shock.

6. Never buy car hire insurance at the rental desk

Insurance from car hire companies is overpriced and poor quality when compared with the policies offered by third parties. See our guide to finding the Best car hire insurance. 

The top-rated excess reimbursement insurance available from Questor costs just £28 for a week’s hire in Spain. By contrast, Europcar’s own ‘premium protection cover’ cost £166 for an August 2023 booking. 

Be aware that if you purchase standalone insurance, your hire company will insist that you leave a hefty (refundable) deposit, and you’ll have to pay an excess if you have an accident. But you can claim it back from your insurance later.

7. Choose the right rental car

There’s still a shortage of SUVs and people carriers, and prices for these vehicles remain very high in some locations. If you can, downsize. And if you can’t make sure you book very early. 

You may also find that electric vehicles (EV) are cheaper to rent. Car manufacturers often insist that rental companies include a proportion of EVs in each order, but consumer demand for these is still low. If you do decide to hire an EV, make sure you check availability of charging points at your accommodation and plan your route carefully, to avoid range worries.. 

8. Choose off-airport car hire

The locations with the highest demand are those based at airports - particularly Malaga and Alicante airports in Spain, Faro airport in Portugal, Paphos airport in Cyprus, and Orlando International Airport in the USA. 

If demand is high, then prices will be too. When we checked prices, the cheapest rate Enterprise had for a week's rental from Malaga airport was £548. But when we changed the pickup location to Malaga train station, we found a car for £249.

Airport hire comes at a premium because car hire companies pay higher taxes to be there. Off-site offices are cheaper to rent, and many firms offer a free shuttle service.

9. Check the car rental company’s fuel policy

We recommend a full-full policy (where you pick up and return the vehicle with a full tank of petrol). It’s not without its pitfalls - forget to refill and you could face a hefty fine - but it avoids paying for more fuel than you actually use. 

A full-to-empty fuel policy, sometimes known as ‘pre-purchase’, will bump up the price of your rental. It’s touted as convenient, because you won’t have to find a petrol station before returning the car, but unless you squeeze every last drop of petrol out of your rental before handing it back, you'll lose out. 

10. Ditch the car hire extras

Car hire companies charge over the odds for extras like satnavs. Instead, download a free app, such as Navmii, to your mobile, which can access maps offline without eating up your data.

Car seats are also pricey, not always in a great condition, and they rarely come with installation instructions. Taking your own car seat solves these problems. And some airlines, including Jet2and easyJet allow you to take one for free. Alternatively, you can sometimes rent car seats at the airport for a fraction of the price.

If you need an additional driver, factor it in when you select a rental company. You’ll always pay more if you don’t mention it until you get to the rental desk. Zest offers a free additional driver in many locations.

Four steps to save on car hire

During October half term 2023, a week’s hire of a Peugeot 208 in Malaga was £521 with Sixt – including zero excess insurance, refuelling and a sat nav. However, by following these three steps, we brought the price down to £238 (£210 for the same vehicle, plus £28 for third-party insurance) – a 54% saving.

1. Book and pay early

• Reserve online and pay the full amount at the time of booking
• Saving: £22 

2. Ditch the satnav

• Download free navigation app Navmii instead  
• Saving: £96

3. Avoid excess waiver cover

• Standalone insurance (£28) will save you money   
• Saving: £146

4. Refuel before you take the car back

• Take the car back with a full tank of petrol and there’s no need for the refuelling service
• Saving: £19

TOTAL SAVING: £283