Car rental rates are up in the US. Despite the decline in traveler numbers and the general decline in tourism due to the recession, car rental rates are up across the board. In some regions, there are even vehicle shortages. It’s all because of aggressive fleet management practices by the car rental companies. Supply is down sharper than demand, which translates to higher rates. And I’m seeing those rates.
A few days ago, I started looking for car rental rates out of San Francisco, and even though I knew that rates were going up, I was still taken aback by the prices. $68 a day (plus taxes) for an economy car?! Ouch.
Even Hotwire’s opaque booking options weren’t much lower. $64 was the lowest they found. Priceline wasn’t taking my bids of up to $30 a day (plus taxes/fees).
I just ran the search again right now. None of the majors are showing any availability at all in San Francisco. A smaller vendor, Fox Rent-a-Car, wants $169.20 a day. Budget has cars at Oakland Airport, for over $189. Low supply, meet high prices.
What I’ve booked is at a much lower rate: $42.50/day, including all taxes, for a four-day rental. How?
I went global.
After my initial shock wore off, I checked prices on international sites, including the UK version of Expedia; Zuji, Singapore’s version of Travelocity; Britain’s easycar, and AutoEurope.
In the end, I made a prepaid booking through AutoEurope. I printed a prepaid rental voucher, and I’ll be picking the car up at a location in downtown San Francisco.
Companies like AutoEurope and EasyCar don’t tell you the name of the company you’re renting with up front, much like Hotwire or Priceline. The amount of information you receive varies, until you finalize your purchase. In the case of AutoEurope, I don’t see why they really bother keeping it opaque. They give you the precise pickup address, but not the name of the provider. That’s nothing a little Googling won’t narrow down…
One caveat with booking an domestic vehicle on a site based in another country: Your credit card can be hit with foreign currency fees, even if you’re booking in US dollars. This varies by bank, so be forewarned. AutoEurope has offices in the US, and my card was charged — in USD — from the Portland, Maine office. So no foreign transaction or currency exchange fees.
But still, I’m a tad nervous about this working out. After all, with supply this tight, and my rate this comparatively low, I wouldn’t put it past the rental company to “lose” my reservation. The fact that it’s prepaid may help, but until I’m behind the wheel, I’m not taking anything for granted. Pickup is Wednesday. Wish me luck.
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August 11th, 2009 at 5:50 pm
Please make sure to let us know how this goes…readers are keenly interested in this potential.
I’ve done the same for airline tickets using relatives’ addresses in the UK.
August 12th, 2009 at 6:05 am
I cannot recommend AE high enough. I use their UK site four or five times a year, and have had excellent service every time. I don’t know if this applies in the US, but in Europe they allow free cancellations up to 48 hours in advance. So if you don’t like the actual rental company, just cancel the reservation, and try the next line down.
August 12th, 2009 at 10:16 am
Hey Mark: Love your blog! Always helpful. This post caught my eye and I might have some bad news for you. Last Weds at about 11 am I was driving down Bush St here in downtown SF and at the Alamo/National facility there was a line of at least 150 (no exaggeration) sweaty, angry looking Euro tourists waiting to get their rental cars. A gruesome scene as many had large bags and looked like they’d just gotten off the plane from Frankfurt. Ready for their day by the bay, but waylayed at the car rental counter. Bon chance!
August 12th, 2009 at 1:47 pm
Yes, please let us know how it goes. One problem might be that US agents may be unfamiliar with the prepaid voucher and give you some hassle.
I did a comparison search for an upcoming booking and it was indeed cheaper through autoeurope.
August 12th, 2009 at 4:34 pm
Twitter Comment
Travel: Lousy domestic US car rental rates? Check the European providers… [link to post]
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August 13th, 2009 at 8:36 am
Be careful here and read the terms and conditions before booking the car. On Expedia.co.uk, the cheapest option on several 1 day trips turns out to be Alamo. But look at this “rule”:
– You will be required to purchase a full tank of fuel at the time of pick up and should return the car empty. No refunds will be given for unused fuel.
On a one day trip, I never use more then a few gallons so this will significantly raise the cost.
August 13th, 2009 at 8:28 pm
On the AutoEurope site, I was offered an excellent deal.
Then, I also found some iffy fine print:
RENTAL DOES NOT INCLUDE
…
* New York resident surcharge $55 -$77 per day for rentals commencing in New York, Newark NJ and Philadelphia. This is supplemental to any prepaid voucher charges and will be collected locally at time of rental.
(I worked out that this was for a rental via Dollar, but I assume it’s the same policy regardless.)
Ouch. Not such a good deal after all. I don’t know if this would add $165 or $242 to the 3-day rental price, but potentially it costs a lot more than the US rental companies’ deals.
August 14th, 2009 at 2:35 pm
Twitter Comment
RT @smartwomentrav: Want cheaper car rentals? Try booking through European agencies. [link to post]
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August 14th, 2009 at 3:32 pm
Twitter Comment
Want cheaper car rentals? Try booking through European agencies. [link to post]
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August 17th, 2009 at 11:48 am
It may have been in anticipation of a BART strike that the San Francisco rentals were all taken up, perhaps?
August 17th, 2009 at 8:50 pm
Belated thanks for the comments here. Apologies for the delay — I was in a no-internet no-cellphone zone for a few days, and I admit it was great. (Until I was able to surf from the plane, of course…)
A full post with some responses to these issues is coming shortly. But for starters:
theothersimon — yes, AutoEurope’s cancellation policy is solid. That’s a big benefit over Priceline and Hotwire, and easycar for that matter, which all withhold the name of the agency until the very end.
chris — you nailed it. The line was horrid. Maybe not as bad as what you witnessed, but it was a full house. A huge waste of time. Kiosks would have been lovely…
JeffB — you nailed it, too. Prepaid tank of fuel is required for all AutoEurope rentals. It worked out for me, given the duration of the rental and the distance traveled, but for a short rental, it might not. It’s important to do the math.
nobugs — Those New York surcharges are not an AutoEurope issue, they’re a NYC car rental issue. Major rental agencies sock it to New Yorkers. Check out these two posts from 2006. The numbers are only slightly different today:
http://www.upgradetravelbetter.com/2006/06/12/car-rental-companies-hate-new-yorkers-unless-they-live-in-manhattan-or-staten-island-apparently/
http://www.upgradetravelbetter.com/2006/06/14/update-hertz-and-dollar-explain-their-hatred-of-new-yorkers/
sosweho — I don’t think it’s about the BART strike threat (now resolved). But it probably didn’t help. The people renting were largely international tourists.
More shortly.
August 18th, 2009 at 5:16 am
[...] noted last week, I rented a car in San Francisco from AutoEurope after finding significantly lower rates with them [...]
August 18th, 2009 at 10:21 am
HI Mark,
Yes– of course NYC residents pay more for rentals. However, usually when you search for a rental rate, it is built in — the rate offered should be the NYC rate. I had to go quite far in the process to find the rate was inaccurate and that the surcharge would be of an amount not stated specifically until I arrived to get the car.
Incidentally, I also tried going through the easycar rental process. Upon getting to the final stage, I finally got the information that the rates given were NOT for residents of the US (it may have said North America). This was not in the FAQs easycar provided, as I recall. You actually had to go through the process and right before the final commitment, you found out it was a no-go.
August 18th, 2009 at 10:44 am
@nobugs — “of course NYC residents pay more for rentals” — I’m no New Yorker, but I’m not sure I’d be so nonchalant about that. Seems rather discriminatory. I just followed the links in Mark’s comment above and I was appalled. How can they justify charging $77 more PER DAY because of borough you live in???
August 25th, 2009 at 5:35 pm
That’s a pretty slick way to get lower rental rates; I hope it works out and you don’t get slammed with a bunch of hidden fees.
October 14th, 2009 at 3:41 pm
Hi, love your post, I think hybrid cars are the future.