What Is a Long-Term Car Rental?

You may be familiar with renting a car for a vacation or a quick weekend getaway. Did you know that you can also rent a car for the long term over several weeks, months and sometimes up to a year? Long-term rentals are a great option to explore if you need a car but don’t own one for any number of reasons. Keep reading to learn more about how long-term rentals work and whether this option is right for you.

When does a long-term car rental make sense?

A long-term car rental can make sense in several situations:

  • You’re not ready to buy a car: A long-term car rental can be a great option if you want the convenience of a vehicle but aren’t ready to commit to one car, prefer not to own a car or can’t afford to purchase one yet.
  • You’re on a budget: Depending on the car you rent, long-term car rentals may be more cost-effective than monthly car payments. You may also save money by renting for a longer period instead of consistently using short-term car rentals. However, it’s important to do your research and compare your options since costs vary across rental companies. Factors such as the type of car, premium add-ons, mileage and insurance all play a role in the total cost of a rental.
  • You need a car for a specific long-term purpose: Perhaps you have a seasonal job that requires you to drive a car every day of the week for a few months, or you’ll be traveling for work for an extended period in an area without reliable public transportation. A long-term rental can provide week-to-week or month-to-month flexibility without the commitment of buying a car.
  • You meet car rental requirements: You must have a valid driver’s license before you can rent a car. Age requirements vary by state (21 is usually the minimum age, but there are exceptions in some states). Drivers under 25 years old will usually be charged an additional daily fee. You typically also need a valid credit or debit card.

Alternatives to a long-term car rental

Here are a few alternatives to consider if a long-term car rental doesn’t meet your needs:

  • Lease a car: A short-term car lease is similar to a long-term car rental but with a few differences. Short-term leases may be slightly more cost-effective. However, there are usually mileage limits on leases, and the dealership will run a credit check before they lease you a car. You also won’t be able to exchange car models during the lease period as you often can with a long-term rental.
  • Use a peer-to-peer car-sharing service: Several peer-to-peer car-sharing services have popped up in recent years as the sharing economy has grown. Essentially, people rent cars to each other without involving a rental company. Check online to see what’s available in your area.
  • Buy a used car: If buying a car isn’t completely out of the question, you might consider finding a used car that fits your budget and needs. This way, you’re putting your money into an asset that you can potentially resell a few months or years down the road, although cars typically depreciate in value.

Deciding whether a long-term car rental is right for you

There are many factors to consider when you’re deciding whether a long-term car rental is the best choice for you. Think through how long you really need the car for and its main purpose. Spend some time researching your local rental companies and see what types of long-term plans, price points and car models are available. Consider the alternatives to a long-term rental if needed.

If you’re looking to compare prices on car rentals, consider booking your rental through the Citi Travel® site if you have an eligible Citi card. That way, you can see a range of options and take advantage of a simple, straightforward booking process.

Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi® product or service. For advice about your specific circumstances, you should consult a qualified professional.

Citi Travel is powered by Rocket Travel by Agoda.

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