Knowing when is the best time to rent a car, in other words, when is it the cheapest, depends a lot on your travel destination and the period of the year. We have done some research based on our internal data, and we got some answers. Follow the guide.
When is the best time to book a rental car?
One of the main questions people ask when trying to find the best deal on a rental car is about the best time to book. Is it better to book weeks in advance or last-minute? When do car rental prices drop? These are all important things to wonder, and the answers may surprise you.
If your road trip dates are already set in stone, you can still save money by knowing when it is the cheapest time to book your car. According to the following data collected by KAYAK, the answer will most likely be to book your car 1 month in advance, or less.
The following chart shows the average daily cost of renting a car by month of travel, comparing bookings made 1 month in advance vs. 6+ months in advance—where the values below each bar indicate the potential savings from booking later rather than earlier.
Key takeaways of our data analysis
January, is the cheapest month of the year to rent a car, with an average daily rate of $42. If you want warmer temperatures, I recommend you to travel in May ($54/day) or September ($53/day).
Booking 1 month in advance is consistently cheaper than booking 6+ months ahead, saving up to $20 per day in January.
Top 3 tips to save on car rentals
Booking in advance can still be useful
If you know you’ll be renting a car during a busy period when prices are likely to be the highest, it pays to book as much as six to twelve months in advance. If you’re traveling with a big group or with kids, and you’ll need a minibus, a large van and extra amenities, you should start your search early.
The best strategy is to shop around and compare online before committing to any single deal. Once you’re familiar with the price range for your itinerary, decide on a target price or the highest price you’d be willing to pay. When you find a deal that you’re happy with, just book it. It’s better to have booked a car for a reasonable price than wait until the very last minute and risk missing out on an equally good deal, or learning the rental company ran out of inventory.
Why prices fluctuate
The first thing to keep in mind is that rental car prices change a lot, and there are a number of factors that determine the price on any given day. Prices can fluctuate because of the season, a particular holiday, the car category, the rental company and timing, just to name a few.
In general, rental companies want to rent out as many cars as possible, just like hotels want to rent out as many rooms as possible. They’ll price cars competitively to increase demand, but when demand is high, they may raise prices to capitalize on it.
Keep in mind that the base price is the most likely thing to change. All of the additional elements of the rental, from young driver fees to baby seats to ski racks, will stay the same price regardless of the timing. This background information will help explain how far in advance you should book your rental car.
