Summer is the season of road trips, and with a record 70.9 million Americans expected to travel by car during the July Fourth holiday week alone, it’s worth exploring whether renting a vehicle for your road trip is more financially savvy than using your own car. Various factors come into play when making this decision, including your current vehicle’s gas mileage, the distance of your trip, how long you’ll be gone, whether you lease or own a car, and the size of your vehicle.
There are several financial costs to weigh when determining whether to rent a car or use your own for a road trip. For instance, you’ll need to compare the total rental costs, such as the daily rental rate and insurance add-ons, against the expenses of operating your own vehicle. Many people are surprised by the actual costs of owning and operating a car, including fueling costs. Renting a more fuel-efficient vehicle could potentially save you money, especially if you own an older, less fuel-efficient car.
In the second quarter of 2024, the average rental cost was $42 per day, with most travelers opting for four-day rentals. However, these rates can vary depending on factors like the rental company, car type, and pickup/drop-off location. Additionally, rental car insurance could add $30 to $61 to the daily rate, depending on the type of coverage. It’s essential to double-check your existing car insurance policy and credit card benefits to see if you’re already covered when renting a car, as you may not need to purchase additional insurance through the rental company.
If you lease a vehicle, it’s crucial to consider factors like mileage caps before embarking on a long road trip. Exceeding the typical 12,000-mile per year lease limit could result in financial penalties, usually around 20 to 30 cents per mile over the cap. Depreciation costs are another significant consideration, as all cars lose value over time. Putting additional miles on a leased vehicle can accelerate depreciation and result in financial consequences when the lease term ends or when you trade in the car.
Repairs and Maintenance
Unforeseen repairs during a road trip can be costly, with the average repair order exceeding $500, excluding towing costs. Rental cars, which are typically newer models, have lower odds of breakdowns compared to older vehicles. Regular maintenance and addressing any potential mechanical issues before a road trip are important steps to prevent breakdowns. Factors like tire condition, mechanical soundness, age of the car, and safety technologies should be taken into account to ensure a safe and worry-free road trip experience.
Renting a car for your summer road trip can be a financially savvy choice depending on various factors such as the condition of your own vehicle, costs of ownership, and potential risks associated with older cars. By carefully considering these factors and calculating the financial implications, you can make an informed decision on whether renting a car is the right choice for your next road trip adventure.