8/14/24

The Straight Scoop: Is Renting a Car Outside the Airport ACTUALLY Cheaper?

Hey everyone, let's talk about a travel question that seems to pop up constantly: should you rent a car at the airport, or are you getting ripped off? We've all been there. You get off a long flight, you're tired, you just want to grab your bags, get your car, & start your vacation. The convenience of an airport rental desk is SO tempting. But then there's that nagging voice in the back of your head wondering if that convenience is costing you a small fortune.
Well, I've done the digging, & honestly, the answer is a little more complicated than a simple "yes" or "no." But the short answer? Yeah, renting a car away from the airport is almost always cheaper. Sometimes SIGNIFICANTLY cheaper. We're talking savings that could pay for a fancy dinner or a couple of tanks of gas.
But here's the thing, it's not just about the sticker price. You've got to weigh the savings against the potential hassle. So, let's break it all down – the fees, the logistics, the hidden costs, & whether that trek into town is really worth it.

The Big Question: Why Are Airport Rentals So Dang Expensive?

It really comes down to a few key things, & it's not just the rental companies being greedy (though, let's be real, they're not doing it for charity).
First up, you've got the airport concession fees. Think of this as rent that the car rental companies have to pay to the airport for the privilege of having a counter right there where all the travelers are. And guess who foots that bill? You got it – you. These fees can be a percentage of the rental cost, sometimes as high as 10-30%, or a flat daily fee. It varies from airport to airport, but it's a major reason for that initial price bump. For instance, San Francisco International Airport charges rental companies 10% of their gross receipts from airport customers.
Then there are the customer facility charges (CFCs). This is another fee that gets tacked on to your bill. It's supposed to cover the costs of the consolidated rental car facility – you know, those massive garages where all the rental companies are located, complete with the shuttle buses that ferry you to & from the terminal. So, even if you're taking a shuttle to get your car, you're paying for that "convenience."
On top of that, you'll often find tourism taxes & other surcharges that are specific to airport rentals. These are designed to raise money from, well, tourists. It's an easy way for cities & states to generate revenue from out-of-towners.
And finally, there's simple supply & demand. The rental companies know that people landing at an airport are a captive audience. You're tired, you want to get on with your trip, & you're willing to pay a premium for the convenience of not having to schlep your luggage into town. During peak travel times, this gets even more pronounced.

So, How Much Can You Actually Save by Going Off-Site?

This is the million-dollar question, right? And the answer is: a lot.
A study by NerdWallet did a pretty deep dive into this & found that, on average, renting a car at an airport is about 26% more expensive than renting from a downtown location of the same company. For a week-long rental, this translated to an average savings of $126. That's not chump change! For longer rentals, the savings can be even more substantial.
I've seen anecdotal evidence of even bigger savings. People on Reddit & other forums have reported saving $200 or more on a rental, especially for last-minute bookings. One person even mentioned that a rental in Chicago was THREE TIMES the price at the airport compared to a local branch in their hometown.
Of course, this isn't a hard & fast rule. Sometimes, especially if you book far in advance, the price difference might be minimal. But more often than not, you're going to see a significant price drop by looking at locations just a few miles from the airport.

The "Catch": Factoring in the Hassle & Extra Costs

Okay, so we've established that off-site rentals are cheaper. But before you automatically book that downtown location, you need to do the math on the other side of the equation: the cost & inconvenience of getting to that rental office.
This is where things can get a little tricky. You've got a few options for getting from the airport to your rental car, & each has its own pros & cons:
  • Rideshare (Uber/Lyft): This is often the most convenient option, but it's not free. That same NerdWallet study found that the average Uber fare from the airport to downtown was about $28, & the average Lyft fare was around $23. Remember, you'll have to pay that both ways – to pick up the car & to drop it off. So, you're looking at an extra $45-$55 in transportation costs. If you're saving $126 on the rental, you're still coming out ahead by about $70-$80. But if the savings are smaller, it might be a wash.
  • Taxi: Similar to ridesharing, a taxi is a convenient but potentially pricey option. Depending on the city, it could be more or less expensive than an Uber or Lyft. It's always a good idea to check the estimated fares beforehand.
  • Public Transportation: This is usually the CHEAPEST way to get around. A bus or train ticket is going to be a fraction of the cost of a rideshare or taxi. However, it's also the least convenient option. You'll have to navigate the public transit system with all your luggage, & it will almost certainly take longer. If you're traveling with a family & a mountain of bags, this might be a deal-breaker.
  • Hotel Shuttles: If you're staying at a hotel near the airport for the first night, see if they have a free shuttle service. You might be able to take the shuttle to your hotel & then walk or take a short rideshare to a nearby rental office the next morning.
Another thing to consider is time. How much is your time worth? Getting to an off-site rental location is going to eat into your vacation time. You'll have to wait for your ride, sit in traffic, & then go through the rental process. If you're on a tight schedule, the convenience of an airport rental might be worth the extra cost.
And finally, there are the operating hours. Airport rental locations are often open 24/7, or at least have very long hours. Off-site locations, on the other hand, usually have more traditional business hours. If your flight gets in late at night, you might find that all the downtown rental offices are closed, leaving you with no choice but to rent from the airport.

When Does Renting at the Airport Actually Make Sense?

Despite the higher cost, there are definitely times when renting a car at the airport is the better choice.
  • You're on a short trip. If you're only renting for a day or two, the savings from an off-site rental might be so small that they're not worth the hassle of getting there. After you factor in the cost of a round-trip Uber, you might even end up spending more.
  • You're traveling with a lot of people or luggage. Juggling kids, car seats, & multiple suitcases on public transportation is no one's idea of a fun start to a vacation. In this case, the convenience of walking to the rental counter or hopping on a dedicated shuttle is probably worth the extra money.
  • You're arriving late at night. As I mentioned before, if you're getting in on a red-eye, the airport might be your only option.
  • You find a great deal. It's rare, but it happens. Sometimes, due to promotions or specific market conditions, the airport location might be the same price or even cheaper than the off-site branches. This is why it's ALWAYS important to compare prices before you book.

Pro-Tips for Saving Money on Your Next Rental Car

Whether you decide to rent at the airport or off-site, there are always ways to save a few bucks. Here are some of my go-to strategies:
  • Book in advance. This is especially true for airport rentals. The closer you get to your travel dates, the higher the prices are likely to be.
  • Compare, compare, compare. Don't just check one rental company or one booking site. Use a comparison tool to see prices from multiple sources.
  • Look for discounts. Do you have a AAA membership? A Costco card? A certain credit card? Many of these offer discounts on rental cars. It's worth a quick search to see what you might be eligible for.
  • Consider peer-to-peer car sharing. Services like Turo can sometimes be cheaper than traditional rental companies. It's a different experience, as you're renting from a private owner, but it can be a great way to save money.
  • Think about your parking situation in advance. This is one of those hidden costs that can really add up, especially in big cities. If you're staying at a hotel, check their parking fees. If you're visiting attractions, look up the cost of parking garages. This is where a service like Prked can be a lifesaver. You can often find affordable & convenient parking spots in private driveways or garages, which can be a MUCH cheaper alternative to expensive hotel or public parking. It's also a great option if you're using an off-site rental & need a place to park your personal car.
  • Monetize your own empty space. On a related note, if you're the one with an empty driveway or garage, you could be making some passive income. With Prked, you can list your space for rent & help out fellow travelers who are looking for affordable parking. It's a pretty cool way to make some extra cash from something you're not even using.

The Bottom Line: Do Your Homework

So, is renting a car outside the airport actually cheaper? Yes, most of the time it is. But the real question is whether the savings are worth the extra effort.
My advice? Do a little bit of homework before you book. Here's a quick checklist:
  1. Get a quote for an airport rental.
  2. Get a quote for a few off-site locations.
  3. Calculate the price difference.
  4. Estimate the round-trip transportation costs to the off-site location.
  5. Subtract the transportation costs from the rental savings.
  6. Decide if the final savings amount is worth the extra time & hassle.
For me, if I'm saving more than $50 & I'm not on a super tight schedule, I'll almost always opt for the off-site rental. But everyone's travel style & budget is different.
Hopefully, this breakdown gives you a better idea of the pros & cons of each option. Let me know what you think in the comments – have you had good or bad experiences with off-site rentals? I'd love to hear your stories
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