How to get cheaper car hire in 2025

Finding the cheapest way to rent a car in 2025 means booking smart and avoiding costly extras

From timing your booking right, to choosing the right car hire company, our tips could cut the cost of your next car rental by 57%.

Below, we share our tried-and-tested tips – such as booking early and cancelling if the prices drop, and never buying car hire insurance from your car hire company – to help you get the best price possible for your next rental vehicle in 2025, without compromising on a quality service.

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1. Book car hire early – with free cancellation

Never leave booking your car hire to the last minute. You should lock in your rental at the same time as booking your holiday, especially if you plan to travel during peak periods or to a high-demand country such as Italy, Portugal or Spain. In popular locations, we have seen cars sell out in the past. 

But always book with a car rental provider or broker that offers free cancellation, such as Which? Recommended Provider  Zest Car Rental. Then, you can cash in if prices go down, which they often do. When your trip approaches, do a quick check of current prices. If the cost of hiring the car has dropped , you can cancel and rebook at the cheaper rate.

Last July, we found that prices dropped by £56 a week (on average) compared with rates in March, in research based on data from Which? Recommended Provider Zest Car Rental, and thousands of bookings at 13 popular holiday destination airports.

2. Pay for car rental in advance

You should also pay upfront. When you book online, most rental companies give you two choices: pay now or pay at location. It's usually around £30-£50 cheaper per week to pay when you book.

It’s also safer. Guaranteeing a rate helps guard against unscrupulous companies cancelling your booking in order to take a more valuable one as rates rise. We’ve already heard from one Which? reader whose booking was cancelled at the last minute, leaving them to pay turn-up prices (three times the original rate) at the airport.

And if you book with an operator that offers free cancellation, you can always cancel and rebook at a later date if prices go down.

3. Book with the best car hire company in 2025...

Which? vets car hire companies and brokers, not just on the customer experience, but also on their pricing transparency, so you can trust them to offer a fair price.

There are two car hire companies that are Which? Recommended Providers (WRPs) – AutoReisen and Cicar. Both specialise in car hire in the Canary Islands. Unfortunately, no other providers made the grade to be a WRP, but Centauro, Alamo, and EnterpriseHertz scored well in our survey.

Looking for the best hire car company in 2025? Read the results of our annual survey.

4. ...or use a small/local car hire firm (via a trusted broker)

Local agents are usually cheaper than big brands. They have fewer overheads, lower marketing costs and offices in cheaper locations (outside of the airports and main transport hubs).

When we compared prices for a week’s hire in October half term in Tenerife (27 October - 3 November 2025), global brands (Avis, Europcar, Hertz and Sixt) averaged £192 for the cheapest car. But AutoReisen, which only operates in the Canary Islands, was just £119. Not only is it cheaper, but it’s a much higher-rated brand that includes zero-excess insurance, car seats and an additional driver at no extra charge.

But we would never tell you to book direct with a company you haven’t heard of. Instead, book with a trusted broker such as Zest Car Rental. Zest regularly vets its car hire companies, only partnering with those that maintain consistently high standards of customer service.

Read the full Zest Car Rental review

5. Avoid 'too good to be true' car hire prices

Wondering how to avoid getting ripped off when renting a car? If a company is offering rates that look too good to be true, they probably are. Sneaky charges are a common issue with some companies. 

In our recent survey, more than one in 10 people told us they were charged more than they had been quoted. The most common disputed or unexpected charges were for damage to the car and refuelling, but others included admin fees, an over-70s surcharge, extra mileage and late (and even early) drop-off. 

Book with a Which? Recommended Provider to help avoid bill shock, and arm yourself with our advice on avoiding car hire rip-offs.

6. Never buy car hire insurance from your car hire provider

Insurance from car hire companies is overpriced and poor quality when compared with policies offered by third parties. You can find the best car hire insurance on the market in our latest guide. 

The top-rated excess reimbursement insurance policies are available from Cover4rentals (Gold) and Worldwide Insure (Deluxe) and cost £16 and £24 respectively for a week's hire in Spain. By contrast, Europcar’s own ‘premium protection cover’ costs £190 for a July 2024 booking, when we checked. 

Be aware that if you buy standalone insurance, your hire company will insist you leave a hefty (refundable) deposit, and you’ll have to pay an excess if you have an accident. But you can claim it back from your insurance later.

7. Book USA car hire from a UK website

Car hire works slightly differently in North America than in the UK and Europe; and we  recommend purchasing any car hire for the USA from a UK website. Here’s why:

In Europe - and the UK - you don't have to buy any additional insurance for car hire – basic insurance is always included in the rental (although you might want to opt into a Damage Waiver, or Super Collision Damage Waiver (SCDW) to cover any potential excess charges).

But in North America, basic insurance isn’t necessarily included. That means if you book on a US website, or in the office on arrival, you could drive away from the rental office responsible for the entire cost of a vehicle if there’s an accident or the car is stolen. 

Instead, book your North America car hire from the UK, making sure that the website URL ends in co.uk. The rental agreement will usually (not always) include insurance for damage or theft, known as a Collision Damage Waiver (CDW) or sometimes a Loss Damage Waiver (LDW). And, unlike in Europe, this CDW often comes without an excess. That means you don’t pay anything in the event of accidental damage or theft. If USA or Canada car rental comes with a zero excess CDW, you won’t need to buy anything else.

Find the best car hire insurance for the USA and Canada in our latest survey.

8. Choose off-airport car hire

The locations with the highest demand are those based at airports - particularly Malaga and Alicante airports in Spain, Faro airport in Portugal, Paphos airport in Cyprus, and Orlando International Airport in the USA. 

If demand is high, prices will be too. When we checked, the cheapest rate Enterprise had for a week's rental from Malaga airport in early August was £266. But when we changed the pickup location to Malaga railway station, we found a car for £194.

Airport hire comes at a premium because car hire companies pay higher taxes to be there. Off-site offices are cheaper to rent, and many firms offer a free shuttle service.

9. Check the car rental company’s fuel policy

We recommend a full-full policy (where you pick up and return the vehicle with a full tank of petrol). It’s not without its pitfalls – forget to refill, and you could face a hefty fine – but it avoids paying for more fuel than you use. 

A full-to-empty fuel policy, sometimes known as ‘pre-purchase’, will bump up the price of your rental. It’s touted as convenient because you won’t have to find a petrol station before returning the car, but unless you squeeze every last drop of petrol out of your rental before handing it back, you'll lose out.

10. Ditch the car hire extras

Car hire companies charge over the odds for extras such as satnavs. Instead, download a free app, such as Navmii, to your mobile, which can access maps offline without eating up your data.

Car seats are also pricey, not always in great condition and rarely come with installation instructions. Taking your own car seat solves these problems. And some airlines, including Jet2 and easyJet, allow you to take one free of charge. Alternatively, you can sometimes rent car seats at the airport for a fraction of the price.

If you need an additional driver, factor it in when you select a rental company. You’ll always pay more if you don’t mention it until you get to the rental desk. Zest offers a free additional driver in many locations.

Four steps to save on car hire

When we checked, a week’s hire of a Seat Ibiza (or similar) in Malaga was £454 with Sixt – including ‘smart protection’ zero excess insurance, refuelling and a sat nav. However, by following these three steps, we brought the price down to £194 (£178 for the same vehicle, plus £16 for third-party insurance) – a 57% saving.

However, by following these three steps, we brought the price down to £178 for the same vehicle – a £276 saving. Or a £260 saving if you factor in the cost of third party standalone insurance – that’s 57% off.

1. Book and pay early

• Reserve online and pay the full amount at the time of booking
• Saving: £19

2. Ditch the sat nav

• Download free navigation app Navmii instead  
• Saving: £83

3. Avoid excess waiver cover

• Standalone insurance (£15.99 with our WRP Cover4rentals (Gold), for example) will save you money.
• Saving: £152

4. Refuel before you take the car back

• Take the car back with a full tank of petrol, and there’s no need for the refuelling service
• Saving: £21

TOTAL SAVING: £260