The Ultimate Budget Car Rental Guide: Save More, Drive Smarter

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Renting a car doesn’t have to cost a fortune. While daily rates have started to level out, hidden fees, pricey add-ons, and poor timing can still drive up the total cost fast.

Whether you’re flying into a new city or planning a weekend road trip, there are smart ways to cut expenses without sacrificing convenience.

From using discount codes to skipping overpriced extras, these tips will help you save money and get more value from your next rental.

1. Compare Prices

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Car rental prices can vary widely between companies, even for the same class of vehicle. As of mid-2025, the average daily rate in the U.

S. is around $73, but with taxes, airport fees, insurance, and optional extras, your final bill could easily double.

Pro tip: Always click through to see the full price with taxes and fees included, especially for airport locations where hidden surcharges are common.

2. Choose the Right Vehicle

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The type of car you rent plays a significant role in your final cost. Economy and compact vehicles are the most budget-friendly and fuel-efficient, while SUVs, minivans, or 4×4 vehicles typically cost 10–30% more per day.

In 2025, prices for larger vehicles rose due to increased insurance and fuel costs. Unless you need extra space or off-road capability, sticking with a smaller vehicle is one of the easiest ways to save.

Pro tip: Renting in a warm-weather city? Skip the SUV. Need space for luggage or a child seat? Consider a hatchback before upgrading to an SUV.

3. Check All Discounts & Codes

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Many drivers miss out on easy savings simply by forgetting to apply a discount code. You can save 10–25% using:

  • Employer or alumni programs
  • AAA, AARP, or Costco memberships
  • Student or military discounts
  • Credit card booking portals (Chase, AmEx, Capital One)

Loyalty programs like Hertz Gold Plus, Alamo Insiders, or Enterprise Plus may waive fees (like for extra drivers) or grant free upgrades.

Pro tip: Always check multiple booking portals before finalizing. Sometimes the same car is cheaper through your credit card portal than the rental company’s site.

4. Prepay, But Read the Terms

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Prepaying your rental online can save you 5–10%, especially during busy travel months. However, prepaid rates often come with strict cancellation or change fees, or are non-refundable altogether.

If your plans are firm and you’re looking for the lowest possible rate, prepaid bookings are a smart move. But if your trip might shift, stick to a flexible booking.

Pro tip: Some companies offer “Pay Now” discounts but still allow partial refunds. Make sure to read the terms carefully before committing.