Car rental - Why is "Pay Now" more expensive?

Car rental - Why is "Pay Now" more expensive? - Parked Red and White Bicycles

I would think that the Pay Now option would be cheaper, but it's more expensive! The total cost of rental is almost double my flight cost.
Yikes.
So, why the heck would I Pay Now? Is there an added guarantee that my car will be waiting for me? I'm scared of all the money this trip is costing in travel alone.

This is a one way rental within the USA.



Best Answer

I cannot think of a great reason why you would want to do this. I suppose in theory your car might be more "guaranteed", but at a major location like Las Vegas (I'm assuming the airport?) it's highly unlikely they would run out of cars anyway.

Generally the only difference I've seen is that if you "Pay Now", the price is expressed in your home currency (if you were from outside the US), whereas otherwise it's expressed in dollars, the value of which could fluctuate slightly before your trip is complete and billed. This wouldn't worry me, but for some it might if you were on a tight budget.




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Why are car rentals so much higher?

They found themselves without enough stock to supply the demand for rental cars. As such, they raised prices on the cars that they did have. Car rentals are expensive because the agencies chose to sell off their cars to survive the pandemic financially.

How can I reduce the cost of car rental?

10 ways to save money on your next rental car
  • Book early \u2014 especially during peak travel season. ...
  • Avoid booking at airports if possible \u2014 they can pile on fees. ...
  • Use a credit card that will cover primary insurance. ...
  • Plug in your Costco, AAA and other memberships. ...
  • Book through sites like Autoslash, which factors in discounts.




  • 5 CAR RENTAL SECRETS ENTERPRISE, BUDGET \u0026 HERTZ Don't Want You to Know!




    More answers regarding car rental - Why is "Pay Now" more expensive?

    Answer 2

    Given the current situation with covid, rental companies are receiving a higher than usual number of cancellations, both at the request of the customer and when a rental location is required to close. It is easier and cheaper to process a cancellation if no money has been paid, so they may be deliberately encouraging payment to only be made once it is certain the rental will go ahead. The screenshot of Hertz search results shared by @user116848 includes a banner advertising "No Cancellation or Change fees when you pay later".

    Sources: Stack Exchange - This article follows the attribution requirements of Stack Exchange and is licensed under CC BY-SA 3.0.

    Images: Carlos Pernalete Tua, Vlad, Alexander Hamilton, Tnarg