Why is car rental in the US so much cheaper when booking from outside the US?

Why is car rental in the US so much cheaper when booking from outside the US? - Photo Of Mercedes Benz On Road During Daytime

I'm going on a road trip from San Francisco to New York in a month and I was checking several car rental companies. The big bang brands (Hertz, Europcar, Avis...) were all very expensive, about $2000 for a 2 weeks rental, while renting the car from a british agency like Car Hire 3000 was way cheaper ($300). And the latter has good reviews... Why is there such a huge difference in price ? Are they car rental agencies similar to Car Hire 3000 ?

Update: I found out that there is a massive price difference depending on your country of residence. When I say that I live in the US, I pay twice the price of a French resident for example.



Best Answer

Car Hire 3000 are a broker, not a rental company. You'll end up with a car from a regular car hire company.

The way that Car Hire 3000 (amongst others) work is to do opaque deals you won't know. You won't know from which company you'll get the car until you complete the booking. It might be from someone big like Hertz or Avis, or it could be from someone small, you just don't know*. Much as with a lot of the opaque brokers in the travel industry, they get good deals because they allow companies to sell off surplus rooms/seats/cars/etc without affecting their regular pricing. The downside for you is you won't know who you're buying from until you've bought, only the basics of what you'll be getting.

* If you ring up Car Hire 3000 to make the booking, they may let slip which rental company it'll be, during the call when running through the different options. For smaller locations, you can also often work it out by deduction - if Car Hire 3000 offers pickups from Downtown, Airport and Station, and the place only has one company at each, then you can work it out that way!




Pictures about "Why is car rental in the US so much cheaper when booking from outside the US?"

Why is car rental in the US so much cheaper when booking from outside the US? - Golden gates crossing calm sea
Why is car rental in the US so much cheaper when booking from outside the US? - From below of crop person holding national flag of United States of America waving in wind on street against city river
Why is car rental in the US so much cheaper when booking from outside the US? - Low angle of road sign on pillar with traffic light located in city on avenue with modern skyscrapers and residential buildings



Why is car hire in USA so expensive at the moment?

One of the reasons that car rentals are so expensive is that car rental agencies sold off most of their cars during the COVID-19 pandemic. Before the pandemic, rental agencies had a good number of cars available. They knew their average demand and had enough cars available for practically everyone to use.

Why is it so expensive to rent a car and return to different location?

But rent the car in one place and return it somewhere else \u2014 a one-way rental \u2014 and you'll pay hundreds, and sometimes thousands, of dollars more. Why? Car rental companies charge hefty dropoff fees to give drivers an incentive to return the vehicle to their original location.

Which countries have cheapest car rental?

A 16-country study of car hire costs worldwide reveals that Turkey and the USA are the cheapest places to hire a car this summer, and Italy and Portugal are the most expensive.

Why are car rentals at airports so expensive?

Rental companies often price their vehicles in peculiar ways, too. For example, cars rented at the airport are almost always more expensive because of added taxes and fees. Rent at an off-airport location and you could save 20 percent or more.



What’s Behind the Rental Car Shortage? | WSJ




More answers regarding why is car rental in the US so much cheaper when booking from outside the US?

Answer 2

Note: simply booking on the rental company European website is usually cheaper than the American website. First you get liability insurance automatically included (while in California for example it is not included if you don't ask), and the final price is cheaper than what you would pay on the American website.

I cannot tell if European residency is required (how strict they enforce these rules) since I used a French ID and driver licence to pick up the car.

Also, I think it is still cheaper to go through a broker.

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

Images: mike noga, Camille Robinson, Ketut Subiyanto, Charles Parker