When is renting a car cheapest? The best time to book

You have probably noticed it already: search for a rental car today for your trip to Spain and you see a certain price. Look again a week later and suddenly there is a different amount. Sometimes cheaper, often more expensive. That is no coincidence and no glitch in the system. Rental prices work exactly like plane tickets and hotel rooms: they constantly move with supply and demand. A fixed “list price” no longer exists.

For you as a traveller, that means two things. First: the moment you book can make a big difference in what you pay. Second: there is something you can steer. Anyone who understands how those prices come about can deliberately choose when and how to book, and so often save tens to hundreds of euros on the same car with the same company. In this guide we explain how the mechanism works and how to make it work in your favour.

How is the price of a rental car actually set?

The price depends mostly on demand, supply and how many cars are available at that moment at your pick-up location. A rental company has a limited fleet at every airport or in every city. If expected demand is high and the fleet is largely booked up, prices rise. If there are still plenty of cars standing ready and demand is low, prices drop in order to get those cars rented out after all.

Behind the scenes, pricing algorithms run that constantly adjust based on occupancy, expected bookings, local events, public holidays and even the weather. A car fleet is in fact a “perishable” product: a car that sits in the car park today earns nothing that day, and that revenue is gone for good. That is why rental companies want to rent out their fleet as fully as possible, and they play with the price to achieve it.

Important to know: the rental price itself is only one part of what you ultimately pay. Insurance, a second driver, mileage limits, the fuel policy and local taxes can push the final price up considerably. So a low base price does not tell the whole story. If you want to understand how to compare that total price fairly, read our guide on all-inclusive versus the cheapest rental car as well.

How far in advance should you book a rental car?

Short answer: as a rule, you book most cheaply a few weeks to a couple of months ahead. Booking early usually gives you not only a lower price, but also by far the most choice in category and pick-up time.

The logic is simple. When a rental company still has most of its fleet available for a busy period, there is room to price sharply and bring in bookings. As the date approaches and the cars get booked up, the price rises for anyone still looking for a vehicle. Booking last minute is therefore a gamble: it can turn out fine in a quiet period, but in high season at a popular destination you risk a much higher price or even a sold-out category.

Still, “as early as possible” is not always literally the cheapest. Extremely far ahead, for example almost a year in advance, the rates are sometimes still a little higher because the pricing models start out cautiously. The sweet spot for most destinations lies somewhere between well in advance and not too late. And that is precisely why free cancellation is so valuable, because then you can lock in early and adjust later. More on that further down.

Does the season matter, and how do I know what counts as high season?

Yes, the season is one of the biggest price levers. The difference between high and low season on the same car at the same location can add up considerably. But what counts as high season depends entirely on your destination.

The rule of thumb: high season is when most people want to go there. On the Spanish and Portuguese coast or in Italy that is summer, with the school holidays of July and August as the absolute peak. In a winter sports region in the Alps it is the other way around: there, winter is the high season and summer is relatively quiet. And at destinations with a mild year-round climate, such as the Canary Islands, the peaks are less pronounced, and it is precisely the European winter that can be busy and expensive, because northerners head there for the sun.

For you this means: do not be guided by one general “cheap month”, but think per destination. If you travel outside the local peak and outside the school holidays, you will almost always be cheaper on the rental price and quieter on the road. Anyone heading specifically to the south will find seasonal details in our guide on renting a car in Spain.

The above is a general guide, not a fixed price list. Always check the figures for your specific dates and location.

Do the pick-up day and the rental duration make a difference?

Yes, both can influence your price, sometimes in a surprising way. The day you pick up and drop off matters because some days are busier than others, and the rental duration can even work out so that a longer period is cheaper per day.

That last point sounds contradictory, but it does happen. Many rental companies have separate rates for a full week. As a result, a rental of seven days can end up cheaper in total than five or six days, because the weekly rate is more favourable than six separate daily prices. So it pays, with a rental of around five days, to also check the price for a full week. Sometimes you get two extra days of car for free, or pay barely anything for them.

The pick-up day can matter too. At airports the rush often coincides with the arrival and departure waves at the weekend, while picking up midweek is sometimes a little quieter and cheaper. There is no iron law for this, so it remains smart to lay a few variants side by side.

Airport or city office: where do you pick up cheapest?

It depends. Airport offices are the most convenient and have the widest opening hours, but they often charge an airport surcharge, which can make a city office cheaper, provided you can reach it easily.

Picking up a rental car at the airport is comfortable: you step off the plane and drive away straight away. That service has a price, because at many airports a surcharge or a higher base price applies. An office in the city or just outside the airport can be cheaper, but then you have to manage to get there, and you have to allow for more limited opening hours. Factor in the bus, tram or taxi before you conclude that the city office is really cheaper.

Also watch out for one-way rentals. If you drop the car off at a different location from where you picked it up, for example picking up in Malaga and dropping off in Seville, rental companies usually charge a one-way fee. That can run up considerably, certainly across a national border. So plan your road trip smartly: a loop back to your starting point is often a fair bit cheaper than A to B.

The smartest trick: book with free cancellation and rebook later

This is perhaps the most powerful tactic there is: book a rate with free cancellation early, and keep an eye on the price. If it drops later, you simply book again at the lower price and cancel the first reservation. You lose nothing and capture every drop.

Because rental prices move so unpredictably, an early booking with free cancellation lets you immediately lock in a good price as a floor. You then always have a guaranteed car at a reasonable rate, even if everything becomes more expensive later. And if the price for your exact period does drop, you still benefit from it by rebooking. It is free insurance against price increases, while keeping the upside.

Two conditions make this watertight. One: when booking, deliberately choose the option with free cancellation, even if it is sometimes a touch more expensive than the non-refundable price. Two: only cancel your old reservation after the new, cheaper booking has been confirmed. That way you are never left without a car.

Concrete tips to grab the lowest price

With the theory under your belt, here are the practical things that together make the biggest difference:

• Book well in advance, but always with free cancellation, so you lock in a good floor price and can rebook later if it drops.
• Always compare via an independent comparison site rather than a single provider, so you see the whole market for your dates. Start with our explanation of comparing rental cars.
• Where possible, travel outside the school holidays and outside the local peak of your destination.
• Compare your rental duration: lay the price of five or six days next to that of a full week.
• Besides the airport, also check a city office, and factor the transport there into your comparison.
• Avoid one-way rentals if you can, or plan a loop back to your pick-up point.
• Look beyond the daily rate: add up insurance, surcharges and the fuel policy into a single total amount.
• Be alert to age surcharges for young or older drivers, and if needed book in the name of a driver without a surcharge.
• After booking, keep an eye on the price a few more times, precisely because it keeps moving.

If you want the complete overview of money-saving tricks, also read our 12 tips for anyone renting a car abroad.

Frequently asked questions

When is renting a car really cheapest?

Usually when you book well in advance and travel outside the local high season and the school holidays. The very lowest price, however, always depends on your specific destination and dates, so compare concretely for your trip rather than trusting one golden rule.

Is renting last minute ever cheaper?

Sometimes it is, but it is a gamble. In a quiet period with plenty of available cars, a rental company can lower the price to get the fleet rented out after all. In high season or at popular destinations you risk the opposite: higher prices or sold-out categories. So do not count on it structurally.

How many months ahead is it best to book?

For most destinations you are fine with a few weeks to a few months ahead. Very far in advance the price can still be a little higher, and too late you run the risk of more expensive or sold-out cars. If you book with free cancellation, the exact moment matters less, because you can always rebook.

Is renting for a week really cheaper than five days?

It can be, and it happens regularly. Many rental companies apply a favourable weekly rate, which means seven days can sometimes cost less in total than five or six separate days. So always compare both options. Only extend if the total amount really comes out lower than, or barely higher than, your original duration.

Why does the price change every time I look?

Because rental companies use dynamic pricing, just like airlines. The rates move with demand, fleet availability, public holidays and local busyness. The same car can therefore show a different amount from day to day. An early booking with free cancellation helps you turn that to your advantage.

Is the airport always more expensive than a city office?

Not always, but an airport office often charges a surcharge. A city office can be cheaper, on condition that you reach it smoothly and allow for the opening hours. Add up the cost of bus, tram or taxi before deciding which location is really cheaper.

Can I save by choosing a cheaper car category?

Usually yes. The smallest categories are generally the most economical, both in rental price and at the pump. Choose a car that suits your actual needs: for two people with hand luggage a small car is often more than enough and noticeably cheaper than a large SUV.