Rent a Car for a Road Trip or Drive Your Own? 5 Things to Consider

Summer is the season for road trips.

According to AAA, a record 70.9 million Americans are expected to travel by car during the July 4 holiday week alone.

For some car owners, it might make more financial sense to rent a vehicle for a road trip rather than using their own, experts said.

“A lot of it will depend on a variety of factors,” said Greg Brannon, AAA’s director of automotive engineering research.

These factors include the gas mileage of your current vehicle, how far you’ll be driving, how long you’ll be away, whether you’re renting or owning and the size of your vehicle, among others, according to Toyota.

Here are some key considerations.

Vehicle capability is a “no-brainer” when deciding whether to lease, said Brian Moody, editor-in-chief of Autotrader, a car-buying website.

The easiest way is to say, ‘I have a five-passenger car and I have eight going on a trip,'” Moody said.

Drivers may also need to compare specifications, such as whether the car needs two-wheel drive or four-wheel drive, as well as storage space for luggage and gear.

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

Drivers should compare the total costs of rental (the daily rental rate and any extras like insurance) with those of using their own car.

“Most people will be shocked by what it actually costs to own and operate their car,” Brannon said.

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

It is possible to lease a more fuel-efficient vehicle and save money. For example, leasing a car that gets 40 miles per gallon instead of a car you currently own that gets 20 miles per gallon would cut your fuel costs in half, all else being equal.

“If you have an older car that gets poor fuel mileage, it might make sense to lease something,” Moody said.

The average rental cost was $42 per day in the second quarter of 2024, with most travelers looking for four-day rentals, according to travel site Hopper.

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

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

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Renters who wish to purchase auto insurance may not need to purchase additional coverage from the rental company.

Car owners may already have comprehensive coverage on a rental through their own auto insurance policies, or may have some coverage through credit card benefits, Brannon said.

“Call your insurer and double-check your coverage,” he said. “You can save a lot of money by not having to buy double insurance for your vehicle if you don’t need it.”

Additionally, car owners who lease a vehicle should consider factors such as maximum mileage before heading out on a long trip. For example, according to Kelley Blue Book, the typical lease agreement imposes financial penalties on drivers who drive more than 12,000 miles per year in their vehicle.

The cost of exceeding that cap is typically 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.)

Depreciation costs must also be taken into account.

Depreciation causes a car to lose value over time. Cars typically lose 10 to 15 percent of their value once they leave the garage, Brannon said.

According to Brannon, depreciation is “the biggest expense of owning a vehicle.” And that’s why it’s important for road trips.

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

According to Allianz, every kilometer traveled wears out the engine, tires and other moving parts.

Depreciation affects every car differently. According to Toyota, the average car depreciation is about 20 cents per mile.

For shorter road trips, say 1,000 to 1,500 miles in a given year, depreciation might not be a big issue compared to lease prices, Autotrader’s Moody said.

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

Unexpected repairs can be costly: The average roadside repair is “well over $500,” excluding towing costs, Brannon said, citing AAA data.

The risk of breakdown is lower with rental cars, which are generally newer models, Moody said. The average used car on the road is about 12 years old, he said.

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

Brannon highlights some questions drivers should ask themselves: Have I maintained my car properly? Is it ready for long days? Are the tires in good condition? Is it mechanically sound? How old is it? What safety technologies does the vehicle have?