Why do car rental prices vary?
Ever wondered why rental car prices can vary from one day to the next? Learn why that is and what you can do to bag the best possible deal.
Have you noticed that vehicle rental prices tend to fluctuate?
It's true. You can rent a car on a Tuesday, bring it back on Wednesday and see a different price for the same vehicle on Thursday.
You might be wondering why this is. You might even believe that it's some kind of swizz – an opportunistic attempt to swindle you out of a good deal.
It's not. But we understand why you might think that.
With this in mind, we're here to explain the industry secrets behind the ever-changing pricing – and offer you some handy tips to help your money go further.
Long story short: it's all about the algorithms
Nearly all rental companies use algorithms – and those algorithms help to determine how much a rental car should cost at a given time.
However, even the most complex systems can't predict everything. Unexplained events such as a change in the weather and a surge in demand can cause price increases up to the last minute.
There are lots of factors to wrap your head around. But it's not so complicated when you scratch beneath the surface.
Here are five key factors that play a role in vehicle hire prices across the UK.
1. Supply and demand
The most obvious of all factors is supply and demand.
Whenever there's a huge demand for rental vehicles – and not enough supply to meet those demands – prices will rise. Alternatively, when there are more cars than customers, prices will drop. Simple.
2. The type of car
It goes without saying that you'll pay more for a high-spec car than a small hatchback. But supply and demand come into play here, too.
Let's look at an example: it feels like -20°C outside and the forecast for the foreseeable future is ice, wind and rain – with the odd snow shower thrown in for good measure.
The likelihood in this scenario is anything that's built for bad weather will increase in price. Think four-by-fours, SUVs and so on.
Similarly, when the sun eventually puts its hat on for a day or two during the great British summer, certain vehicles will increase in price. In this case, it's likely to be convertibles, sports hatchbacks and minibuses.
3. Holidays and events
Holidays and events can also cause prices to change.
Again, this basically boils down to supply and demand (are you seeing a pattern yet?)
Say it's a national holiday – like the Early May Bank Holiday. More people will be off work, which means they're more likely to hire a car for travel.
The same is true for highly anticipated events. If you're in Sunderland and the World Cup Final is due to be held in Durham, you can bet that local car rental companies will be all booked up. This means higher prices, unfortunately.
4. Rental duration
The duration for which you rent a car can be a big head-scratcher.
Should you book three days instead of two? Often, it seems like the price difference is marginal.
When you're booking a rental, the initial day will always cost more than the subsequent days. But you'll often pay more if you decide to extend the rental period halfway through.
For this reason, it's best to plan ahead and decide exactly how long you'll need the vehicle in advance. If you're not sure, it can be better to err on the longer side rather than fork out for an extension later.
5. Competition
Like all businesses, we have to keep our eyes on our competition – and this alone can have a huge impact on the pricing you see from day to day and from week to week.
If a rental firm sees competitors cutting prices left, right and centre, they too will lower their pricing to win more business. This causes a knock-on effect as other vehicle hire companies follow suit as they attempt to attract more customers.
How to beat the price fluctuations
The honest answer is that you may not be able to. However, if you follow these helpful hints, you'll maximise your chances of bagging the best deal.
1. Book in advance
Typically, booking up to three months in advance will help you secure the best deal.
Should you wish to take your chances closer to the time, you may be able to grab yourself a steal. However, it's a gamble – you always run the risk of paying more because supply and demand have seen a surge.
2. Don't be picky
If you're not picky about the type of car you hire then – more often than not – you'll end up paying less. A smaller car will always cost less to hire than its larger counterparts.
So, consider renting a smaller vehicle if you have the option. This will save you money on the rental and on the fuel. Win-win!
3. Contact MVH Rental
Whether it's for business or
personal vehicle rental, we offer affordable car hire in the North East – combined with friendly, flexible service as standard.
We've got options to meet all rental needs. You can choose from a range of vehicles, including premium cars, vans and minibuses.
There's a reason we're trusted in Newcastle, Sunderland and the North East. It's all down to our friendly local experts and great prices. We even aim to match prices wherever possible – and more often than not we can say with confidence that you won't find a better price locally.
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