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

Summer is the season of road trips.

A record 70.9 million Americans are expected to drive during the Fourth of July holiday week alone, according to AAA.

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

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

These factors include your vehicle’s current gas mileage, how far you’ll drive it, how long you’ll be gone, whether you lease or own it and how big your vehicle is, among other things, according to Toyota.

Here are some key considerations.

Vehicle capacity is a “no-brainer” when it comes to choosing whether to lease or not, said Brian Moody, executive editor of Autotrader, a car-shopping site.

It’s easier to say, “I have a five-passenger car and I have eight on the ride,” Moody said.

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

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

Drivers will need to compare the total rental costs – the daily rental rate and possible extras such as insurance – against those of operating their own car.

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

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

It may be possible to rent a more fuel efficient vehicle and save money. For example, leasing a car that gets 40 miles per gallon versus a currently owned car that gets 20 mpg would cut fuel costs in half.

“If you have an older car that’s fuel inefficient, it might make sense to lease something,” Moody said.

The average rental cost $42 a 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 based 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, citing MarketWatch data.

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

Car owners can already get full rental coverage through their car insurance policies, or they can get some coverage through credit card benefits, Brannon said.

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

Additionally, car owners who rent a vehicle should weigh factors such as mileage limits before taking a long road trip. For example, the typical lease imposes financial penalties on drivers who put more than 12,000 miles a year on their vehicle, according to Kelley Blue Book.

The cost to exceed that limit 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 considered.

Depreciation causes a car to lose value over time. Cars famously lose about 10% to 15% of their value once they’re driven away, Brannon said.

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

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

Every mile takes its toll on the engine, tires and other moving parts, according to Allianz.

Depreciation affects all cars differently. The average car depreciates by about 20 cents per mile, according to Toyota.

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

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

Unanticipated repairs can be costly: The average repair order on the road is “more than $500,” excluding recall costs, Brannon said, citing AAA data.

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

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

Brannon points out some questions drivers should ask: Have I done a good job maintaining my car? Is it for long days on the road? Are the tires in good condition? Is it mechanically sound? How old is he? What safety technologies does the vehicle have?