Curb those car costs
BEING organised can actually cost you money when renting a car and booking closer to the date is key to getting the best deal, new research has revealed.
DriveMyCar’s rental price index found that booking a rental car seven days in advance is more cost effective between January and October, netting you a better deal than you might get by booking 30 days or 60 days in advance. Booking a week ahead is 13 per cent cheaper than one month on average and 18 per cent cheaper than two months.
December is the most expensive month of the year to book, while June is the cheapest. However, prices vary greatly across location and time, according to Drive My Car chief executive Chris Noone.
“It’s all about supply and demand,” Mr Noone said. “If cars are available they might drop the price, but the risk is also that if you leave it late, prices may also go up.”
This week is currently the best time between now and Christmas to book a rental car, but Mr Noone said the real issue is that the advertised rate is never what you end up paying.
“There is a big difference between advertised rates and what you actually get charged,” he said. “People … think the advertised price is the final price, but there are a lot of exclusions in this price.
“It’s like saying a TV costs $1000, but if you want it to change channels, that will be $1200.”
Insurance is one of the biggest price traps, Mr Noone said.
“It can cost an extra $20 or $30 a day to reduce your liability.”
DriveMyCar is one of a series of new car rental companies, along with CarNextDoor and GoGet that believe there is a gap in the market for transparency and better prices.
DriveMyCar offers cars for a minimum booking period of seven days at a time, at a minimum price of $21 a day, but an average of around $30 a day. Mr Noone claims his company’s prices are up to 62 per cent cheaper than other car rental companies, depending on the time of year. GoGet and CarNextDoor focus on shorter rental periods, offering cars by the hour.
These companies have clear pricing without the added extras that can make traditional companies hard to compare.
“It’s not easy to find (the real cost of traditional rental cars),” Mr Noone said. “You …need to go through the booking process and get the final figure.”
Emily Teare moved to Australia from London in December last year and rents if she wants to get out of the city for weekends.
“We like to go up and down the coast, which is obviously hard to do without a car,” the 27-year-old commercial sales executive said. “We weren’t used to renting cars and were surprised at first at the high prices.”
Ms Teare’s weekend trips are often on a whim, but she tries to plan in advance when possible.
“In December I’m going to Melbourne for Christmas,” she said. “I’m looking at trying some new options. Originally we went to mainstream companies but you can definitely get cheaper than that.”