The 9 best alternatives to traditional car rental companies if you're facing high prices and low inventory during the current shortage
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Turo; Getaround; Avail; Alyssa Powell/Insider
- The current car rental shortage is expected to impact traditional car rental companies this summer.
- As demand stays high, we found alternative car rental companies to consider for added inventory.
- Here's everything you should know about rental car companies like Turo, ZipCar, GetAround, and more.
The US is undergoing a nationwide shortage of available rental cars, with a perfect storm of high demand and low inventory. As a result, travelers are faced with unusually high rental fees and, in many cases, a complete lack of cars.
Jonathan Weinberg, the founder and CEO of AutoSlash, a third-party website for discount car rentals said, "The situation is quite severe. The rental companies sold off between 30-40% of their fleets during COVID to survive, unloaded in the used car market. They didn't foresee this huge upswing in demand and can't quickly buy back their inventory."
Other factors such as a hesitancy to get on planes, and a surge in road trips are contributing to very high rental fees. "In Pensacola, for instance, rates are already over $125 per day," Weinberg said. "Austin, Texas recently saw $180 per day rates. This issue is likely to be with us at least through the end of the summer."
While there are no guarantees for a cheap last-minute rental car right now, you might tip the numbers in your favor by exploring unconventional options since most people check airport locations of traditional rental companies first.
"You will likely have better luck trying alternatives to the traditional companies," says Biswajit Kundu Roy, CEO of fleet technology company Coastr. "They typically do not show up on online travel or car rental booking websites. Use Google Maps or even Instagram to search for alternative or local car rental agencies."
"Customers are also looking into alternatives such as renting more widely-available models: two compact cars instead of a large SUV, or renting U-Hauls as they are cheaper and show more availability," said Anup Dhiraj, associate VP and product manager for car rentals at Rategain, which analyzes the travel industry.
Based on expert advice, and after analyzing dozens of options, we found some of the best car rental alternatives, from lesser-known and regional companies to peer-to-peer and dealership options.
The best alternative car rental companies:
- Best peer-to-peer car rental: Turo
- Best peer-to-peer rental in select markets: Getaround
- Best peer-to-peer rental with no fees: Avail
- Best car share membership: Zipcar
- Best for hybrid or electric vehicles: GIG Car Share
- Best for unusual or classic cars: Hagerty DriveShare
- Best app you probably already have: Lyft Rentals
- Best dealership-based rental: Silvercar
- Honorable mention: U-Haul
Turo
Turo
Peer-to-peer car rentals are becoming more and more popular. Turo was an early entrant into the market, and has become som popular, it earned a place on our list of the best traditional car rentals.
With a well-established nationwide network and comprehensive policies, Turo does not own a fleet but rather allows people to both rent from private car owners or rent out their own private cars. Set-up is straightforward and the renting process is near-identical to that of traditional rental companies. Turo also offers well-defined insurance options and a roadside 24/7 assistance policy. There's also the Turo Go App for remote, contactless pick-ups, available in Los Angeles, San Francisco, and San Diego.
Best peer-to-peer rental in select marketsGetaround
Getaround
Getaround is another peer-to-peer rental company that works on a similar principle to Turo and has most of the same amenities.
Unlike Turo, it only operates in around 20 large metro locations across the US. Their app allows guests to book a wide variety of vehicles directly (by the hour or the day) without ever having to meet anyone in person, carry an access card, or pick up keys at an office. If you're searching for a car where they operate, it's a good option to consider.
Best peer-to-peer rental with no feesAvail
Avail
This peer-to-peer, per-day rental service by Allstate Insurance looks to streamline the rental experience with no hidden fees. The Avail fleet typically has younger cars (they cannot be older than 2010 models) and guarantees all reservations.
Like Turo and Getaround, rentals can be done remotely through the app or website, and vehicles are collected and returned at select airports.
Best car share membershipZipcar
Zipcar
Zipcar is a membership-based car-sharing company (owned by Avis). The company provides branded automobiles to its members in most major American cities.
Rentals are billable by the minute, hour, or day, and members pay a monthly or annual membership fee in addition to car rental charges. The self-service nature of the rental is an advantage in this climate, and cars are available 24 hours a day, seven days a week, removing any need to visit a car rental office.
Best for hybrid or electric vehiclesGig Car Share
GIG Car Share
This company only operates in Seattle, Sacramento, and the San Francisco Bay Area as of now, but was included for two important reasons.
First, it is operated by AAA and its expansion has been rapid thus far. Second, it is the only company that exclusively rents out hybrid or electric cars (Prius and Chevy Bolt), which feels like a jump start on the future of car rentals. The bookings are run through an app, and cars can be dropped anywhere within the company's approved parking zones, which gives drivers more flexibility. Rent by the minute, hour, day, or pre-packaged longer periods.
Best for unusual or classic carsHagerty
Hagerty DriveShare
This company operates in much the same way that Turo does, but is specifically set up for specialty cars.
There's a surcharge for renting vintage, classic high-performance vehicles, but in terms of making a road trip more memorable, it's definitely something to consider. If you've ever wanted to take out a Porsche 911 for a day, this may be a good way to try it. Rental details are down to individual renters and many owners are willing to deliver the car to your home if you're within reasonable driving range.
Best app you probably already haveLyft
Lyft Rentals
If you use the Lyft app on your smartphone already, you may notice an icon of a set of keys on the home screen. This takes you to the Lyft Rentals service, which currently operates in around 30 US cities.
Lyft partnered with rental company Sixt to facilitate fulfillment, and gives users a free credit to get them to and from the pick-up (up to $20 each way). Lyft offers free add-ons (such as ski racks, child seats, etc), unlimited mileage without extra fees, and charge local rates for gas. There is a 24-hour minimum rental period.
Best dealership-based rentalAudi
Silvercar
Silvercar operates out of most of the larger airports and in most of the bigger markets, currently in 30 cities across the US. It's an app-based rental program so there's no dealing with offices and key pickups. One good bonus: child car seats are high quality and are free (though must be reserved in advance), as are ski racks.
Best honorable mentionAP
U-Haul
If you simply need a vehicle to get from point A to B, then a moving truck might actually work in a pinch. U-Haul operates a vast nationwide network, offers relatively cheap rates, and a huge fleet of vehicles. They are not typically based at airports, but if you can get to a neighborhood location, and don't mind driving a truck, it's a viable option.
FAQ: How to book a cheap rental carAre there risks in choosing an option outside of traditional car rental companies?
The risks in terms of renting a car are about the same as using a traditional company, and in fact, most of these alternative companies are less likely to overbook. However, as always, be sure to read the fine print in regard to your policy before booking to avoid possible fees or problems.
How far in advance should I book a car rental?
The short answer is: as early as possible. Between three to six months is optimal to find the best deals. Early booking has become even more important recently with last-minute car rental reservations being nearly impossible to find and car shortages happening nationwide.
Why are rental cars so expensive?
Pricing is higher than ever due to an unprecedented demand for rental cars. Additionally, each company will work to its own pricing algorithms, and some have a flat fee or membership rate.
In general, though, weekend pick-ups tend to be slightly cheaper, with Monday and Tuesday pick-ups usually slightly more expensive as travelers start their week. If there is a choice, compare airport pick-ups versus locations in the city, even factoring a taxi to other locations. Some cities will always be cheaper at the airport, while others will see the complete opposite.
Should I add car insurance?
First, check with your current car insurance policy to see if you're already covered, or call your insurance company or credit card holder to find out if your existing coverage extends to a rental car.
Some of these alternative rental car companies include insurance in the rental fee, but make sure to check what exactly is included. For example, some require an extra payment to upgrade from third party to comprehensive insurance.
Is it worth joining car rental loyalty programs?
Most loyalty programs are free to join, and sometimes there are immediate benefits or offers, so, there's really no downside to signing up.
Joining a loyalty program is even more attractive right now since they often come with perks like getting to jump the line or priority car rentals. With longer-than-ever wait times and lines at many locations, those special perks might come in handy.
Where can I find a car rental quote?
Most of these companies will happily supply quotes on their websites without too much information being required.
What do you need to rent a car?
Typically, just a driver's license and a credit card. Most companies also require drivers to be age 25 or older.
What if I arrive for my car rental reservation and no car is available?
Unfortunately, this is turning into a real possibility amid ongoing rental car shortages. These days, it's always worth calling ahead to confirm the reservation and make sure there are cars on-site at your rental location.
If you show up and your car isn't available, there are a couple of options:
Ask if there's another car available in a different class. Ideally, you would be able to upgrade at no extra cost if the company is at fault.
However, if they only have cars in a downgraded class, this may still be a better option than no car at all. Just be sure to receive a credit or a voucher for the difference in price.
You can also ask if a nearby location might have a car available and if the company will cover your taxi or Uber. If it's late in the day, you may also want to consider coming back earlier the next day to see if any cars have been returned.
If no car with your original company is available, unfortunately, your only option may be to hunt around at other car rental companies. In that case, always ask for a refund, but be prepared for the fact that if you had a prepaid reservation, it may be challenging to get your money back.
Are car rentals safe?
The CDC says that travel in the US is safe for fully vaccinated individuals.
Additionally, all of the rental car companies on our list have announced enhanced measures to combat the spread of COVID-19, and have stepped up cleaning and sanitization procedures.
Additionally, experts agree that a well-sanitized car rental is safe. Strict checklists, new cleaning products, curbside and contactless pick-up, and thorough cleaning and disinfecting protocols are all part of new levels of service designed to assuage concerns regarding COVID-19.
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