Best Time To Rent A Car: Is It Better to Book in Advance or Last Minute?

If you travel and drive overseas often, you'll know the question of when's the best time to book a rental car is a much-debated one. Some people prefer to book months in advance, as early as possible, while others prefer to book days before taking off. While you might think that booking early is the best approach, it may not always be the most cost-saving.

Contrary to widespread belief, the best time to book a rental car appears to be within a month of your pickup date. A Forbes Advisor study from August 2024, analysing six months of rental trends, found that booking far in advance often results in higher costs. Regardless of the car type or agency, rates tend to decrease as the travel date approaches, which is good news for those who tend to book their rental cars closer to their trip.

The Forbes study illustrated this with a May 2024 traveller who, by booking in January, faced an average daily rate of $152. As the rental period neared, prices declined, reaching a low of $99 in mid-April. While pinpointing the precise best day to book a car rental is difficult, early April ($104,) and late April ($100+) offered significantly better rates than early bookings. This demonstrates that waiting closer to the travel date can yield substantial savings.

As mentioned, this conclusion is drawn from car booking trends at major global rental providers — Hertz, Avis, Budget, Enterprise, Alamo, National, and Thrifty — comparing bookings one week out versus three months out. While the data primarily reflects rentals in the USA, the principles of supply, demand, and the best time to rent a car are generally applicable to other countries and cities. We'll explore these broader applications further below.

The savings were consistent across all companies, with Thrifty showing the most significant difference. You could save an average of 28.02% by booking seven days out versus three months.

Here’s a brief overview of the average percentage difference in costs of major rental companies globally:

It's often debated what the best time to rent a car truly is, but recent data points towards last-minute savings. This isn't just a US phenomenon. Based on our own calculations for popular destinations like Perth, Jeju, and Wellington, you can also save when booking one week in advance rather than three months. For a SIXT rental in Perth, you could save up to 50%, for a Tamra rental in Jeju, about 12.5%, and for a BUDGET rental in Wellington, roughly 0.6%, all for the same drop-off and timing. In conclusion, you don’t save money by reserving a rental car in advance, so if you always procrastinate, this is in your favour.

While data suggests last-minute bookings can save money, there are exceptions. Let's take a closer look at scenarios where early reservations are beneficial.

During school holidays, year-end travel, festive seasons, and major events like the FIFA World Cup, Coachella, or Oktoberfest, securing a rental car in advance is crucial. Locations with limited rental fleets or public transportation, such as New Zealand, Iceland, and remote islands, also warrant early bookings.

Plus, some destinations, like Japan, during peak ski season, experience extreme rental shortages. While data suggests last-minute bookings can be cheaper, you wouldn’t want to face unexpected costs of thousands of dollars due to last-minute unavailability.

Therefore, it may not always be the best to reserve a rental car at the last minute. Understanding the best day to book car rental is crucial in these high-demand periods, as waiting too long could result in no available rentals or exorbitant prices. For some periods and destinations, it could be better to secure a reservation early and monitor for price drops.

Many global car rental agencies offer free cancellations, allowing Singaporean travellers to employ price-tracking strategies. To do so, you can book early at a cancellable rate and then monitor prices on sites like Kayak or AutoSlash. If prices drop, cancel and rebook at a lower rate.

However, before you book your car rental, ensure you have free cancellation and diligently track prices and dates. While most major rental companies offer this, smaller rental car alternatives may not, limiting this strategy. It’s also important to note that while this strategy can lead to savings, it requires careful management and consistent monitoring.

Aside from finding the best time to secure your rental car, finding other ways to save on rental cars is always advantageous. Here are some additional strategies to potentially reduce your rental cost:

1. Explore Beyond the Usual Suspects: Don't dismiss alternative rental options; these less conventional services can occasionally offer more budget-friendly rates, though it's worth noting that this isn't always guaranteed.

2. Maximise Your Affiliations: Tap into the power of memberships. Whether through paid programmes or affiliations offering corporate discounts, these can unlock significant savings.

3. Stick to a Single Driver: Avoid unnecessary fees by designating one driver. Many rental companies impose extra charges for additional drivers, but certain membership programmes allow you to bypass these fees.

4. Optimise Your Payment Method: Using the right credit card is key. Great travel credit cards provide more than just reward points; some offer valuable rental car insurance coverage when you pay with them.

>> MORE: 4 tips to save on car rental during your holiday

Why you should get insurance for rental car loss and damage

Car Rental Loss & Damage Insurance covers damage or theft of your rental vehicle, providing financial protection during your rental period. Eligibility and benefit levels vary by card, so it's essential to check the specific terms and conditions. Terms, conditions, and limitations apply. This benefit can save you from costly out-of-pocket expenses in case of an accident or theft, offering peace of mind.

Maximising your credit card rewards can significantly offset travel costs and enhance your rental experience. Here are some of the best travel credit cards of 2025 to consider:

• Best for miles: Citi PremierMiles Card

• Best for cashback with no minimum monthly spending: Standard Chartered Smart Credit Card

• Best for overall cashback: UOB One Card

• Best cashback for shopping and dining: HSBC Live+ Credit Card

• Best for frequent flyers: HSBC TravelOne Credit Card

• Best for fuel discounts: Citi Cash Back+ Card