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How to cut car rental costs

There’s no getting around it, using a hire car while travelling offers a great deal of freedom, but they can be damned expensive.

So what can you do to keep your costs down?

If you are travelling overseas, one simple tip is to compare the price of booking in Australia to your destination and vice versa, often the difference can save you hundreds.

You’d think it would always be cheaper overseas but, according to The Age, often it’s cheaper to book in Australia depending on the company, so crank up your internet and shop around before you settle on a price.

And here are a few more tips to cut the costs of your hire car.

When to book

You should always book your car hire before you travel.

Like many services, the price depends on demand and can change at any time. Better to lock a price in early than be stung by prices closer to your travel dates when the whiff of desperation may be in the air. Rentalcars.com recommends three to six months before you travel. It also recommends renting with a company with free cancellation, in case you find a cheaper deal elsewhere.

The price will depend on several factors, not just the duration of the trip. They include age of the drivers, drop off and pick up location, how many people will be driving the car and extras such as baby seats and roof racks.

If you are planning to cross international borders, you must let your hire company know. Some will be okay with that, but some will require extra insurance or charges. Some also won’t let you take your car on a ferry (looking at you New Zealand) and others may be okay with you travelling to some countries, but certain other countries could, once again, require extra charges and insurance.

Location, location

It may also be cheaper to pick your car up from another location apart from the airport as many rental companies charge a premium for this service.

It will almost always be cheaper to pick up and drop off the vehicle at the same site as you will probably be slugged with a ‘one-way’ fee to pay to return the car to its original location.

Take photos of the car’s condition both before take possession of it and after you drop it off. There is a scam going around where dodgy hire companies hit you up for ‘damages’ after you return home.

Always, always fill up the car yourself before you return it. Otherwise, the rental company will charge you to fill it, and let’s just say they have no interest in being in the competitively priced fuel market.

And keep it clean, If your car is unreasonably dirty you will probably be slugged a cleaning fee.

International licence

And not a cost-saver, but certainly a time-saver, before travelling, check what licence you will need. Most countries will accept your Australian driver’s licence, but some will require an International Driving Permit (IDP), including countries Australians love to travel to such as Indonesia, Spain and Italy.

However, you should also check with your rental company as some require an IDP, even if the country doesn’t.

Check if you need a IDP here, and apply for one here

IDPs are valid for one year. If you stay longer than that, you may need to apply for a local licence.

Do you regularly hire cars when travelling? What do you do to keep the costs down? Why not share your tips in the comments section below?

Also read: How to keep your luggage safe and secure

Jan Fisher
Jan Fisherhttp://www.yourlifechoices.com.au/author/JanFisher
Accomplished journalist, feature writer and sub-editor with impressive knowledge of the retirement landscape, including retirement income, issues that affect Australians planning and living in retirement, and answering YLC members' Age Pension and Centrelink questions. She has also developed a passion for travel and lifestyle writing and is fast becoming a supermarket savings 'guru'.

2 COMMENTS

  1. Insurance costs was not mentioned in the article .
    Recently I rented a car in one of our major cities and was slugged $46 per day for insurance .
    That just about doubled the total cost of the vehicle
    As someone with no insurance claims for a large number of years I found it to be a rip off

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