Strategy for finding the best price for a car rental

[Editors Note: This post originally published on 5/1/2009]

My suggestion is that on Kauai, typically Alamo with the Costco discount and coupon is the least expensive. A big thing about the costco rate is that it includes an extra driver for free. Without that you’ll need to pay $10/day or something for an extra driver. However there is a lot of truth in the saying “Remember the Alamo”. I’ve had mixed results at the location in Lihue. The last trip we were upgraded on the spot to a convertible for free from a compact rate. Thank you Robin ! The trip before we had a convertible but it had lots of bugs. The agents use a lot of pressure to buy the extra insurance. Mike is worst. However the reason I usually rent from Alamo is that it is the cheapest. As an aside having a convertible when the weather is good is a great experience. And if you do get one, I recommend the Sebring instead of the Mustang. The V8 Mustang eats gas while standing still and with low speed limits on the island the car’s power is not needed.

My strategy for car rentals is as follows:

1. Go to costco.com, rentalcode.comand also the car rental forums on flyertalk.com to see the different rate codes and coupons. Try a whole bunch of rates and coupon combinations. On Kauai, Alamo almost always has the best regular rate. Book one but do not pre-pay.

2. I sign up for the Alamo and other rental car emails and when I see a special I try it out but it usually doesn’t help.

3. I frequently repeat step 1 (sometimes every day) to see if the quote I’ve already booked has gone down in price. I don’t know why, but at least Alamo changes the rate for the same days and car type often. If I get a better quote for the same days and car as in step 1, I book the better rate and then cancel the old one.

4. I also use Priceline. Sometimes Priceline can beat my quote in step 1 or 3 and sometimes it can’t. I will typically start at 50% less than the best quote I’ve got. The more time I have before I leave the less serious I am about a reasonable bid. I figure out how much I will need to save from my quote in step 1 or 3 in order to accept Priceline because with Priceline you do not get a second free driver. As it comes closer to my trip I might start raising my bid. You don’t want to start too high because once it takes your bid the game is over and you are committed.

5. If Priceline does not accept your bid and you get within a day or two of your trip you can try a final bid. At this point you know what you will pay with your reservation in step 1 or 3. Depending upon how you feel you can try saving 10% or 20% or whatever you think is appropriate. Usually Priceline will come back with its best counter offer a day before or on the day you leave. At that point if it saves you enough then take it. Otherwise go with reservation in step 1 or 3.

6. Depending upon your budget you might want to use Priceline for the “fun” car (say convertible) and bid for that at around what you’d pay for a compact or midsized in step 1 or 3. I’ve gotten a convertible for $20/day though you probably could do better.

You can also get the Costco discount coupons from the travel brochure that are available when you walk out of the store.

Alan