Rent a car for a road trip or drive yourself? 5 things to consider

Summer is the season of road trips.

A record number of 70.9 million Americans expect to travel during the fourth holiday week of July alone by car, according to AAA.

For some car owners, renting a car for a road trip may make more financial sense than using their own car, experts say.

“It’s going to be quite dependent on a variety of factors,” said Greg Brannon, AAA’s director of automotive engineering research.

Those factors Involving According to Toyota, factors including the gas mileage of your current car, the distance you will drive, how long you will be gone, whether you lease or own and how big your car is.

Here are some important considerations.

Vehicle capacity is a “no-brainer” when it comes to deciding whether to rent or not, says Brian Moody, editor-in-chief of Autotrader, an auto shopping site.

It’s easiest to say, ‘I have a five-person car and eight of us are going on the trip,'” Moody said.

Drivers may also need to compare specifications, such as the need for a two-wheel drive car versus a four-wheel drive car, as well as storage space for luggage and equipment.

This is where the math gets a little trickier. There are many financial costs, some obvious and some less so.

Drivers should compare the total rental cost – the daily rental rate and possible extras such as insurance – with that of operational their own car.

“Most people will be shocked when they see what it actually costs to own and operate their car,” says Brannon.

Fuel costs, such as gasoline or electric charging, are a financial consideration for renters and car owners alike.

It may be possible to rent a more economical vehicle and save money. For example, if you rent a car that gets 40 miles per gallon versus a current car that gets 20 mpg, all else being equal, fuel costs would be cut in half.

“If you have an old car that doesn’t get a lot of gas mileage, it might make sense to rent something,” Moody said.

The average rent costs $42 per day According to travel site Hopper, most travelers were looking for four-day rentals in the second quarter of 2024.

The daily rate may be higher or lower depending on factors such as the rental company, car type and pick-up and drop-off location.

The cost of rental car insurance can add $30 to $61 to the daily rate, depending on the type of insurance, according to Allianz Travel, based on data from MarketWatch.

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Renters who want car insurance may not need to purchase additional coverage through the rental company.

Car owners may already get full coverage for a rental car through their own auto insurance policies, or may have some coverage through credit card benefits, Brannon said.

“Call your insurance agent and double-check your coverage,” he said. “You can save yourself a lot of money by not double insuring the vehicle if you don’t need to.”

Additionally, car owners who lease a vehicle must weigh factors such as mileage limits before taking a long road trip. For example, the typical rental agreement imposes financial sanctions on drivers who drive their vehicles more than 12,000 miles per year, according to Kelley Blue Book.

The cost of exceeding that limit is usually about 20 to 30 cents per mile, KBB said. (At 30 cents, a driver would pay $300 for every 1,000 miles over the mileage limit.)

There are also depreciation costs to take into account.

Over time, a car loses its value due to depreciation. Cars are known to lose about 10% to 15% of their value once they leave the parking lot, Brannon said.

Depreciation is “the largest expense of owning a vehicle,” Brannon said. And that’s why it’s important for road trips, he says.

“The more miles you put on a vehicle, the more it depreciates in value,” Brannon said.

According to Allianz, every kilometer causes wear and tear on the engine, tires and other moving parts.

Depreciation affects every car differently. According to Toyota, the average car depreciates about 20 cents per kilometer.

For shorter road trips — say, 1,000 to 1,500 miles in a given year — depreciation may not be as much of an issue relative to rental prices, according to Autotrader’s Moody.

Depreciation generally only matters to people who plan to sell or trade in their vehicle in the future.

Unplanned repairs can be costly: The average on-the-road repair order is “well over $500,” not including towing costs, Brannon said, citing AAA data.

Breakdowns are less likely with rental cars, which tend to be newer models, Moody said. The average used car on the road is about 12 years old, he explained.

While a mechanical problem would be troublesome for anyone taking a road trip, renters would not be financially liable (assuming they are not at fault), Moody said.

Brannon points out some questions drivers should ask: Have I properly maintained my car? Do you fancy long days on the road? Are the tires in good condition? Is it mechanically OK? How old is it? What safety technologies does the vehicle have?