As rates rise, pare cost of car rental

Fasten your seat belt. Car rental rates have hit overdrive. Even an econo-box can command $35 or more a day in the U.S., plus taxes and fees.

But your wallet needn’t be flattened by rising prices. Few travel costs are more flexible than rentals, and careful choices about where and how you book can put you in the driver’s seat. More on that shortly.

For now, a brief detour to explain why rates are up when demand is down. It’s basically because rental companies have downsized.

“Business certainly isn’t good,” especially at airport sites, said industry expert Neil Abrams, president of Abrams Consulting Group in New York.

Fewer people are flying, and with lower used-car prices, companies make less on vehicle resales, an important revenue source.

On the other hand, “there are a lot fewer cars,” said Abrams, who estimated that the industry in the last year shrank fleets by 20%, outpacing the drop in demand.

This imbalance drives up rates, which have recently run about $12 more per day than they were a year earlier, Abrams said, based on his firm’s surveys of rentals at major airports.

Scott Thompson, president and chief executive of Dollar Thrifty Automotive Group, expects current trends to continue this year.

To get a grip on your rental budget, try these seven strategies:

1. Leave the airport: You pay dearly for convenience. Rentals at airports, which typically have higher rates and a host of fees and taxes that aren’t charged elsewhere, can cost three times as much as off-airport rentals.

“If you want to save,” Abrams said, “take a cab to where you’re going and rent a car, unless the cab fare is $50,” which is not unusual in big cities.

It pays to know a thing or two about public transit. Your chances of landing a weekend discount improve away from the airport.

In San Francisco, an economy car I priced online from Enterprise Rent-a-Car for a three-day weekend rental cost about $164, including taxes and fees, at the city’s airport but only $70 at Enterprise’s downtown 222 Mason St. site.

To get those savings, take a half-hour BART train ride from the airport to the Powell Street station ($5.35) and walk about three blocks to Enterprise.

In Los Angeles, that same rental cost about $44, including taxes, under a weekend special at one of Enterprise’s Westside sites, compared with $147 at LAX. The downside: Getting there from the airport involves cumbersome bus connections, hefty cab fares or a friend with wheels.

2. Avoid the extras: Waivers and insurance to cover collision damage, liability and loss of personal effects can total $25 or more per day when bought at the rental desk. Yet in many cases, you don’t need this coverage because it’s already provided by your auto, homeowner’s or renter’s policies.

A few premium credit cards may offer coverage too. In any event, call to make sure.

3. Shop around: Rates vary among companies and outlets. Websites such as Expedia, Travelocity, Orbitz and BreezeNet make comparing easy. Make sure you’re seeing the full price, including taxes and fees, which can add 30% or more to your costs at airport locations.

Although you’ll often find lower prices online, it’s worth calling the rental outlet and your travel agent.

4. Take a chance: A car is a car is a car, no matter whom you rent it from. So you don’t give up much by bidding on Priceline.com or booking through Hotwire.com’s “Hot Rates,” where you learn which company you’re renting from only after you reserve the car. And you can save a lot.

When I checked Hotwire, it charged half as much for the San Francisco airport rental as Enterprise. One downside is that these so-called opaque bookings are usually nonrefundable.

5. Look in your wallet: Members of AARP, AAA and Costco and some credit-card holders, among others, may be entitled to discounts of 5% or more. Make sure to carry your card.

6. Follow the rules: Return your car on time, or you may get dinged for late fees. Don’t count on a grace period. With inventory tight, station managers are “much more keeping to the letter of the law,” said Chris Brown, editor of Auto Rental News, a trade magazine based in Torrance.

7. Fill it up: Note the prices and locations of gas stations near your rental site so you can return your car with a full tank. Otherwise, you may get stuck paying a per-gallon markup for refueling by the rental company and sometimes a service fee.

jane.engle@latimes.com