Summer Road Trip Tips: Should You Rent or Use Your Own Car?

As summer approaches, many Americans are preparing for road trips to enjoy the season. With a record-breaking 70.9 million Americans expected to travel by car during the July Fourth holiday week alone, the question arises: is it more financially savvy to rent a vehicle for a road trip than to use your own car? Experts suggest that the decision to rent or use your own car depends on several key factors.

Consideration Factors

According to Greg Brannon, director of automotive engineering research at AAA, several factors need to be taken into account when making the decision. These factors include your current vehicle's gas mileage, the distance you'll be driving, the duration of your trip, whether you lease or own, and the size of your vehicle. Additionally, vehicle capacity plays a crucial role in this decision-making process.

Brian Moody, executive editor of Autotrader, points out that it's important to assess the number of passengers and the need for additional storage space for luggage and gear. Drivers may also need to compare the necessity of a two-wheel-drive versus a four-wheel-drive car.

Financial Considerations

When comparing the financial costs, drivers need to consider the total rental costs, including the daily rental rate and potential add-ons like insurance, versus the costs of operating their own car. According to Brannon, many people are often surprised at the actual costs of owning and operating their car. Fueling costs, such as gasoline or electric charging, are also significant considerations for both renters and car owners.

Moody suggested that it might make more financial sense to rent a more fuel-efficient vehicle if you own an older, fuel-inefficient car. The average rental cost was $42 a day in Q2 2024, with most travelers looking for four-day rentals. However, the daily rate can vary based on factors such as the rental company, car type, and pickup and drop-off location. Additionally, the cost of rental car insurance might add $30 to $61 to the daily rate, depending on the type of insurance.

Car Insurance and Lease Factors

Renters who want car insurance may not necessarily need to buy additional coverage through the rental company. Car owners may already have coverage through their own car insurance policies or credit-card benefits.

For those who lease a vehicle, it's crucial to consider factors such as mileage caps before embarking on a long road trip. The typical lease may impose financial penalties on drivers who exceed the mileage limit, with costs usually ranging from 20 to 30 cents per mile. Furthermore, depreciation costs should also be taken into account, as depreciation causes a car to lose value over time. This is particularly important for individuals planning to sell or trade in their vehicle in the future.

Depreciation and Maintenance

Brannon emphasized that depreciation is the biggest expense of owning a vehicle, and it continues to depreciate with every mile driven. He also highlighted the potential costs of unforeseen repairs, which can average well over $500, excluding towing costs. In contrast, rental cars, being newer models, are less likely to experience mechanical issues.

Moody advised drivers to consider the maintenance and overall condition of their cars before deciding whether to rent. Questions such as whether the car is mechanically sound, its age, and the presence of safety technologies should be evaluated.