Before You Rent a Car: Is That “Good Deal” Really a Good Deal?

You find a rental car for what looks like a reasonable price.

You see the daily rate.

You compare a couple of options.

It fits your budget.

But here's the question many travellers don't ask until it's too late:

The good news is that rental-car prices aren't expected to surge dramatically in Canada or the United States. According to American Express Global Business Travel (Amex GBT), rental rates in both countries are forecast to increase by only about 1.5% to 2% in 2026–27.

That's relatively modest.

But that doesn't necessarily mean your next rental car will feel inexpensive.

There are several other factors that can add to the overall cost — and in some cases, the biggest question isn't which rental car should you choose?

It's:

When we search for a rental car, it's easy to focus on the number displayed beside the vehicle.

$49 a day.

$62 a day.

$79 a day.

The lower number naturally catches our attention.

But the advertised daily rate isn't necessarily the best measure of what your rental will ultimately cost.

Amex GBT is reporting significant growth in the number and value of surcharges in North America, including airport fees and day-of-week charges.

That matters because two rentals with similar daily rates can have noticeably different final costs depending on where and when you pick up the vehicle.

In other words, the question shouldn't simply be:

It should be:

Picking up your rental at the airport is certainly convenient.

You've just collected your luggage, you walk to the rental-car facility, pick up your vehicle and you're on your way.

But convenience can come with additional costs.

Airport-related charges are among the surcharges that are becoming more common in North America.

That means a rental that looks attractive when you're comparing daily rates may look somewhat different once the additional charges are included.

This doesn't mean airport rentals are always a bad choice.

Sometimes the convenience is absolutely worth it.

But it's worth knowing what you're paying for that convenience.

It's not only where you pick up the car.

Amex GBT specifically points to an increase in day-of-week charges in North America.

So if your travel dates are flexible, it can be worth comparing the total cost of slightly different pickup or return dates rather than assuming that changing your plans by a day won't make a difference.

A small change in dates might not save you much.

But sometimes it can.

And that's why looking at the total price rather than simply the advertised daily rate matters.

This is where things get interesting.

We often think of the choice as:

But there is another option:

Amex GBT looked at airport-to-city-centre return journeys in its top 10 U.S. car-rental cities and compared the cost of renting a car with using ride-hailing services.

The results were surprising.

For a one-day rental, renting a car was less expensive than ride-hailing in five of the ten cities examined.

But when the rental period was extended to two days, ride-hailing was cheaper in every city studied.

That doesn't mean ride-hailing is always cheaper.

Far from it.

Amex GBT points out that multiple journeys — or destinations where parking is free — can shift the calculation back in favour of renting.

And that's the point.

Before renting a car, consider your itinerary.

Are you staying at one hotel in a city and spending most of your time walking or using public transportation?

Will you need a car every day?

Are you planning to make several excursions?

Will you be paying for hotel parking?

Will there be tolls?

Are you picking the car up at an airport?

Could you use a ride-hailing service for the occasional trip instead?

A rental car can be incredibly convenient — especially for road trips, family vacations, rural destinations and itineraries involving multiple stops.

But if you're spending most of your time in a city, a rental car can sometimes become an expensive vehicle that spends much of the day sitting in a parking garage.

And you're still paying for it.

Here's another easy one to overlook.

If you're staying downtown in a major city, parking can add significantly to the cost of having a rental car.

You may have:

Suddenly, that attractive daily rental rate isn't looking quite so attractive.

That's why I always encourage travellers to think about the entire transportation cost, not just the rental-car price.

The outlook isn't all bad.

Amex GBT expects rental-car rates in Canada and the United States to remain relatively stable, with increases of approximately 1.5% to 2%.

Improved vehicle availability is helping keep increases more moderate after the supply challenges the industry experienced in recent years.

However, rising automobile insurance costs could put some upward pressure on rental prices.

There are also longer-term factors to watch.

Geopolitical disruptions could affect supplies of materials such as aluminum and helium used in vehicle and semiconductor production. And increasingly sophisticated vehicle technology can make vehicles more expensive to repair.

Those factors don't necessarily mean you'll suddenly see dramatically higher rental rates.

But they are reminders that the cost of operating a rental fleet involves much more than simply putting a car on a lot and renting it by the day.

Maybe.

And that's the honest answer.

If you're taking a road trip, visiting several destinations, staying somewhere with limited transportation options or planning multiple outings, a rental car may be the obvious choice.

But if you're flying into a city, staying downtown and only need transportation occasionally, it may be worth comparing the cost of a rental car with ride-hailing or public transportation.

And if you're somewhere where parking and tolls are expensive, that comparison becomes even more important.

And perhaps most importantly:

The good news is that rental-car rates in Canada and the U.S. aren't expected to increase dramatically in the coming year.

But stable rental rates don't automatically mean a cheap rental.

Airport fees, day-of-week surcharges, parking, tolls and other expenses can all affect the final cost.

And sometimes, the biggest savings don't come from finding a cheaper rental car.

So the next time you see a rental car that looks like a bargain, don't immediately click “Reserve.”

Take another look.

And if you're not sure which transportation option makes the most sense for your trip, that's exactly the kind of thing a travel advisor can help you work through before you book.