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

Summer time is the season of street journeys.

A report 70.9 million People are anticipated to journey by automobile through the July Fourth vacation week alone, in response to AAA.

For some automobile homeowners, it could be extra financially savvy to lease a car for a street journey than use their very own, specialists stated.

“It will be fairly depending on a wide range of elements,” stated Greg Brannon, AAA’s director of automotive engineering analysis.

These elements embrace your present car’s fuel mileage, the space you may be driving, how lengthy you may be gone, whether or not you lease or personal and the way large your car is, amongst different issues, in response to Toyota.

Listed here are some key issues.

Car capability is a “no-brainer” with regards to selecting whether or not to lease or not, stated Brian Moody, government editor of Autotrader, a automobile procuring web site.

It is best to say, “I’ve a five-passenger automobile and I’ve eight occurring the journey,” Moody stated.

Drivers might also want to check specs, similar to the need of a two-wheel-drive versus a four-wheel-drive automobile, in addition to cupboard space for baggage and equipment.

That is the place the maths will get a bit trickier. There are various monetary prices, some apparent and others much less so.

Drivers would wish to check complete rental prices — the day by day rental charge and potential add-ons like insurance coverage — versus these of working their very own automobile.

“Most individuals will likely be shocked at what it really prices to personal and function their automobile,” Brannon stated.

Fueling prices, similar to gasoline or electrical charging, are a monetary consideration for each renters and automobile homeowners.

It might be doable to lease a extra fuel-efficient car and get monetary savings. As an example, renting a automobile that will get 40 miles per gallon versus a at present owned one which will get 20 mpg would, all else equal, minimize gasoline prices in half.

“You probably have an outdated automobile that is gasoline inefficient, it’d make sense to lease one thing,” Moody stated.

The typical rental value $42 a day within the second quarter of 2024, with most vacationers in search of four-day leases, in response to journey web site Hopper.

The day by day charge might be increased or decrease based mostly on elements like rental firm, automobile kind, and pickup and drop-off location.

The price of rental automobile insurance coverage may add $30 to $61 to the day by day charge, relying on insurance coverage kind, in response to Allianz Journey, citing MarketWatch information.

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Renters who need automobile insurance coverage might not want to purchase extra protection by means of the rental firm.

Automotive homeowners might already get full protection on a rental by way of their very own automobile insurance coverage insurance policies, or might have some protection by means of credit-card advantages, Brannon stated.

“Name your insurance coverage agent and double-check your protection,” he stated. “It can save you your self a bunch of cash by not double-insuring the car for those who need not.”

Moreover, automobile homeowners who lease a car ought to weigh elements like mileage caps earlier than taking a protracted street journey. For instance, the everyday lease imposes monetary penalties on drivers who put greater than 12,000 miles a yr on their car, in response to Kelley Blue Guide.

The price for exceeding that cap is normally about 20 to 30 cents per mile, KBB stated. (At 30 cents, a driver would pay $300 for each 1,000 miles over the mileage restrict.)

There are additionally depreciation prices to think about.

Depreciation causes a automobile to lose worth over time. Vehicles famously lose about 10% to fifteen% of their worth as soon as they drive it off the lot, Brannon stated.

Depreciation is “the most important expense of proudly owning a car,” Brannon stated. And that is why it issues for street journeys, he says.

“The extra miles you placed on a car the extra it depreciates,” Brannon stated.

Each mile places put on and tear on the engine, tires and different shifting elements, in response to Allianz.

Depreciation impacts all automobiles in another way. The typical automobile depreciates at about 20 cents a mile, in response to Toyota.

For shorter street journeys — say, 1,000 to 1,500 miles in a given yr — depreciation may not be a giant deal relative to rental costs, stated Autotrader’s Moody.

Depreciation usually solely issues for individuals who plan to promote or commerce of their car sooner or later.

Unexpected repairs might be expensive: The typical restore order on the street is “effectively in extra of $500,” excluding towing prices, Brannon stated, citing AAA information.

The chances of a breakdown are decrease with rental automobiles, that are usually newer fashions, Moody stated. The typical used automobile on the street is about 12 years outdated, he defined.

Whereas a mechanical challenge can be inconvenient for anybody taking a street journey, renters would not be financially liable (assuming they don’t seem to be at fault), Moody stated.

Brannon factors out some questions drivers ought to ask: Have I accomplished a great job sustaining my automobile? Is it up for lengthy days on the street? Are the tires in good condition? Is it mechanically sound? How outdated is it? What security applied sciences does the car have?