Rosalind Evans
Summer is synonymous with road trips, and with a record 70.9 million Americans expected to travel by car during the July Fourth holiday week alone, the decision to rent a car or drive your own is more relevant than ever. For some, renting might be the more intelligent financial choice. “It’s going to be pretty dependent on various factors,” says Greg Brannon, AAA’s director of automotive engineering research. Here are five key considerations to help you decide.
Vehicle Specifications: Capacity and Features
When planning a road trip, vehicle capacity is crucial. “I have a five-passenger car, and I have eight going on the trip,” notes Brian Moody, executive editor of Autotrader. Ensuring your vehicle can accommodate all passengers and luggage comfortably is essential. Additionally, consider the necessity of a two-wheel-drive versus a four-wheel-drive car based on your destination’s terrain.
Operating Costs: The Financial Breakdown
Calculating operating costs can be complex. Compare total rental expenses, including daily rates and potential add-ons like insurance, with the costs of using your vehicle. “Most people will be shocked at what it costs to own and operate their car,” Brannon says. Fuel efficiency is another factor; renting a car that gets 40 miles per gallon instead of a 20 mpg vehicle can significantly cut fuel costs. “If you have an old car that’s fuel inefficient, it might make sense to rent something,” adds Moody.
Rental Costs: Understanding the Charges
In 2024, the average rental car costs $42 a day, according to Hopper. This rate can vary based on the rental company, car type, and pickup/drop-off locations. Insurance is another cost consideration. Allianz Travel states that rental car insurance can add $30 to $61 to the daily rate. However, existing car insurance policies or credit card benefits might already provide coverage. “Call your insurance agent and double-check your coverage,” Brannon advises. This can save money by avoiding unnecessary additional insurance.
Depreciation and Mileage: The Hidden Costs
Car owners, especially those leasing vehicles, must consider depreciation and mileage limits. Exceeding the typical lease mileage cap of 12,000 miles a year can incur penalties of 20 to 30 cents per mile. Depreciation, the loss of a car’s value over time, is another critical factor. “The more miles you put on a vehicle, the more it depreciates,” Brannon says. For short trips, depreciation might not outweigh rental costs, but it’s a significant factor for those planning to sell or trade in their car.
Vehicle Condition: Reliability and Repairs
The state of your vehicle is paramount for a smooth trip. The average road repair cost exceeds $500, not including towing, according to Brannon. Rental cars, typically newer models, reduce the likelihood of breakdowns. “The odds of a breakdown are lower with rental cars,” Moody explains. Before deciding, assess your vehicle’s maintenance, tire condition, and overall reliability. Ask yourself: Is it mechanically sound? How old is it? Does it have the necessary safety technologies?
Choosing between renting a car and using your own for a road trip involves multiple factors, including vehicle specs, operating costs, rental charges, depreciation, and vehicle condition. Weighing these considerations carefully will help you make the best decision for a safe and enjoyable journey. As Greg Brannon emphasizes, the choice depends on individual circumstances, so evaluate your situation thoroughly before hitting the road.
