Great news for travellers as car hire prices fall - with the cost of car hire up to 47 per cent cheaper this year compared to 2023
The consumer champion examined data supplied by car hire broker Zest Rental, a Which? Recommended Provider, for over 3,000 rentals at airports in 13 popular holiday destinations including Orlando, Alicante, Lanazrote and Corfu for the forthcoming Easter and summer holidays. The data covers all car types, for week-long rentals.
Eleven of the 13 destinations Which? checked have seen average prices drop over the Easter holidays compared with the same period last year, while nine of the destinations have seen prices fall over the summer break.
Over Easter, Funchal in Madeira has seen the biggest price drop of £146, 35 per cent less than last year, when travellers spent £412 on average. A week’s rental now costs £266.
Palma, Mallorca is close behind with the average rental costing £92 less than the previous Easter, a 29 per cent fall. Travellers previously paid £319 per week, compared to an average of £227 this year.Corfu currently has the cheapest average rental costs over Easter, with a week’s rental coming in at just £84 on average, with prices dropping 47 per cent on last year, when the average price paid was £158.
Rhodes and Nice were the only destinations to buck the overall trend over the Easter break, with prices up 36 per cent on average in Rhodes, and a whopping 97 per cent in Nice. It’s possible that these areas have a less competitive rental market, leading to higher prices.
Of the 13 destinations checked, slightly fewer destinations have seen prices fall for the summer, but where they have fallen the drops are generally more significant. Five destinations have seen prices fall by more than £100 on average.
Rhodes Airport has seen the biggest summer price decrease, with the average rental costing £160 less than last year, down to £259 from £419 a week (a drop of 38%).
Close behind with a price drop of £146 is Funchal, Madeira Airport, where a week’s rental now costs £350 on average, compared with £496 last summer (a fall of 29%).
Alicante meanwhile has seen prices fall by £116 to £223 a week (a 34% drop), at Corfu Airport prices are down by £107 to £296 (a 27% drop) and at Palma Airport prices have fallen by £106 on average to £270 a week (a fall of 28%).
Of the destinations Which? looked at, Lanzarote has the cheapest average rental costs over the summer holidays, at £190 a week. This is 27 per cent less than last summer, when travellers paid £262 on average.
Just four airports Which? checked have seen prices rise this summer. Malaga and Malta have seen modest increases of four and five per cent respectively, while at Nice prices are up nine per cent, and at Larnaca they’ve jumped 33 per cent, from £190 last year to £252 this summer.
In the face of widespread vehicle shortages after the pandemic, the cost of car hire rose significantly. Manufacturing issues meant supply of new vehicles stalled, and rental firms struggled to restock at a pace to keep up with consumer demand.
Now that many of those supply chain issues have eased, companies have finally been able to replenish their stocks. At the same time, the brakes have been put on the used car market, meaning car hire companies are more likely to hold onto older stock for longer, rather than opting to resell. With an oversupply of vehicles comes cheaper prices for holidaymakers.
While it’s positive to see prices falling, rental costs are still higher than travellers were used to pre-pandemic, however. Easter prices are up by 51 per cent on average compared with 2019, and summer prices are up by 53 per cent.
While the latest price reductions should be good news for many, Which? is cautioning travellers to be on the lookout for dodgy practices - and to be wary of prices that look too good to be true.
The consumer champion has previously found that when prices fall, the number of complaints about car hire firms tends to increase. With profit margins squeezed, unscrupulous firms may be more likely to engage in illegal pressure selling, or add spurious damage charges and unexplained fees to travellers’ bills.
Which? is urging travellers to use a reputable car hire firm or trusted broker to secure their rentals this year, be aware of common car hire firm tricks issues to watch out for before travelling.
Naomi Leach, Deputy Editor of Which? Travel, said:
“While it’s encouraging to see car rental prices finally starting to ease after the sky-high rates of the last few years, travellers should nonetheless be cautious if they’re quoted a rock-bottom price that sounds too good to be true.
“Even when prices are low, the worst companies might still employ dodgy tactics like adding on unfair fees or pressuring you to purchase extras that you don’t need. Book with a reputable company or use a trusted broker to ensure you’re getting a fair deal.”
-ENDS-
Notes to editors:
Research:
Broker Zest Car Rentals supplied the average daily rate across all car categories in the Easter and summer holidays in 13 airport destinations: Alicante (Spain), Corfu, Faro, (Portugal), Funchal (Madeira), Lanzarote, Larnaca (Cyprus), Malaga (Spain) Malta, Nice, (France) Orlando (USA), Palma (Mallorca), Pisa, (Italy) and Rhodes.
Prices are average rates based on 1,332 rental bookings made in January 2023 for Easter and summer 2023, and 1,778 rental bookings made in January 2024 for Easter and summer 2024.
Which? advice on common dodgy car hire tactics to watch out for:
Booking with a recommended car hire company, or a trusted broker is your best defence against car hire issues. But travellers should still be aware of the biggest rip-offs and how to avoid them. Common examples of rip-off practices to watch out for include:
- The delayed customer rip off - where you’re forced to upgrade to a pricier vehicle or make a new booking at walk-up prices because your flight was delayed and your vehicle has been ‘let go’.
- The cleaning con - where you are charged an extortionate amount to clean the car inside and out, despite returning the car in a reasonable condition. Which? Has seen travellers charged as much as €242. Common issues are sand on/in the car and watermarks on the seats.
- Insurance pressure selling: Which? has found customers who have already purchased third-party insurance are often pressured into purchasing insurance they do not need at the rental desk.
- Hire car fuel policy rip off - charged over the odds for a full tank of fuel, and you’re then told to bring the car back empty – which is virtually impossible – with no refunds for unused fuel.
- The dodgy damage charge - where travellers are charged over the odds for a tiny scratch, or have to fork out for a pre-existing bump or scrape that didn’t happen on their watch.
You can find Which?’s full guide on 14 common rip offs and how to avoid them here.
Which? advice on what to do if you think you've been ripped off by a car hire firm:
- Always ask the car hire company for an explanation of any additional charges and supporting documents. If you're not happy with the explanation, tell the company the money has been taken 'under protest' and inform your card company about the dispute.
- If you paid by credit card you can make a claim against the card provider under section 75 of the Consumer Credit Act. If you paid by debit card you can ask your card company to use the chargeback system to reverse the payment and give you your money back.
- Failing that, take your complaint to a resolution service. In the UK around 500 car hire firms are members of the British Vehicle Rental and Leasing Association (BVRLA), which has a code of conduct and a complaints procedure.
- For complaints about car hire in Europe you can try the European Car Rental Conciliation Service (ECRCS) – a free service to help with unresolved complaints concerning cross-border vehicle rentals. The ECRS can get refunds for incorrect charges, but will only deal with complaints about its member companies.
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