Rental Car Booking Strategies: When to Reserve for the Best Deals

Contrary to popular belief, the best time to book a rental car may not be months in advance. A recent analysis by Forbes Advisor found that rental car prices are often lowest in the final weeks leading up to the reservation date. However, there are nuances to consider when determining the optimal booking window for your travel plans.

Unlock Rental Car Savings by Timing Your Booking Right

The Surprising Trend: Rental Rates Drop as Travel Nears

The Forbes Advisor study examined rental car pricing across the 10 busiest U.S. airports over a 6-month period. Regardless of the car type or rental agency, the data revealed that reserving a car months in advance could mean paying peak prices. For example, someone traveling in May 2024 but making a rental car reservation in January 2024 would have paid an average of $152 per day. However, average prices dropped as the rental period drew nearer, with the best rate becoming available in mid-April at just $99 per day. Choosing to book in early April resulted in rates of $104 per day, while late April was just over $100 per day - both excellent deals compared to reserving in January or February.This trend held true across different rental car companies as well. While some, like Avis, exhibited more variability in their pricing patterns, the underlying observation remained the same: Rental car rates are generally lower in the final weeks before travel, rather than when booking many months in advance.

Balancing Flexibility and Availability

Of course, determining the optimal time to book a rental car is more nuanced than simply chasing the lowest price. There are several factors to consider when deciding whether to reserve early or wait until the last minute.One key reason to book a rental car well in advance is to ensure availability, especially during peak travel seasons or events. Major sporting events, festivals, and conventions can quickly deplete the local rental car inventory, leaving late bookers without any options. Locking in your reservation early not only secures a vehicle but also protects you from potential surge pricing.Advance booking is also advisable if you require a specific vehicle type, such as a larger SUV or a luxury model. These in-demand cars tend to sell out quickly, so securing your preferred rental early is recommended.On the other hand, the potential for last-minute savings can be enticing for flexible travelers. If you're willing to be adaptable on the rental agency or car size, waiting until the final weeks may allow you to take advantage of discounted rates as rental companies try to fill their remaining inventory.

Striking the Right Balance: A Hybrid Approach

To strike a balance between securing the best rate and ensuring availability, a hybrid approach can be an effective strategy. Start by booking a refundable reservation months in advance, locking in your preferred vehicle and travel dates. Then, continue to monitor rental car prices leading up to your trip. If you spot a lower rate, you can cancel the initial booking and rebook at the better price.This approach provides the peace of mind of having a rental car secured, while also allowing you to capitalize on potential last-minute savings. Just be sure to understand the cancellation policies of your initial booking before making any changes.Additionally, leveraging credit card benefits can further enhance your rental car savings. Many travel rewards cards offer primary collision damage coverage, which can save you $15 or more per day compared to purchasing the rental company's insurance. Some cards also provide elite status with rental agencies, unlocking additional discounts and perks.

Automate the Price Tracking Process

Manually monitoring rental car prices can be time-consuming, but there are tools available to help automate the process. Metasearch engines like KAYAK offer price tracking services that will notify you when rates change for your desired rental parameters. Services like AutoSlash go a step further, actively searching for promotional codes and limited-time sales to further lower your rental costs.By combining a strategic booking approach with the right credit card and price tracking tools, you can maximize your chances of securing the best possible deal on your rental car. Whether you choose to book early or wait until the last minute, staying informed and flexible is the key to unlocking significant savings.