Should you rent a car for your road trip, or drive your own? 5 factors to weigh.

• During the July 4th holiday week, it is predicted that a large number of Americans will go on a road trip, as stated by AAA.
• Using your own vehicle for a road trip may not always be the most financially wise option.
• When choosing a vehicle, there are several factors to consider, including vehicle health, rental and insurance rates, fuel efficiency, and lease contract details.

Summer is the season of road trips.

During the July 4th holiday week, it is predicted that 70.9 million Americans will travel by car, as stated by AAA.

Experts suggested that for some car owners, it may be more financially wise to rent a vehicle for a road trip rather than using their own.

According to Greg Brannon, AAA's director of automotive engineering research, it will depend on several factors.

According to Toyota, several factors such as your vehicle's gas mileage, the distance you'll be driving, how long you'll be gone, whether you lease or own, and the size of your vehicle, among others, should be considered when planning a road trip.

Here are some key considerations.

The car's specs

When deciding whether to rent a vehicle, capacity is a clear-cut consideration, according to Brian Moody, executive editor of Autotrader, an online car shopping platform.

Moody said that he has a five-passenger car and eight people going on the trip.

When selecting a car, drivers must consider specifications such as two-wheel-drive versus four-wheel-drive and the amount of storage space for luggage and gear.

Operating costs

The complexity of calculus arises when dealing with various financial expenses, some of which are evident while others are not as clear.

Comparing the total rental costs, including the daily rental rate and any additional fees like insurance, to the expenses of owning a car is necessary for drivers.

The true cost of owning and operating a car will shock most people, according to Brannon.

Both renters and car owners must take into account the expenses related to fueling their vehicles.

Renting a more fuel-efficient vehicle can help save money. For example, switching from a car that gets 20 mpg to one that gets 40 mpg would cut fuel costs in half.

Renting something may be more practical if your old car is fuel inefficient, according to Moody.

Rental costs

In Q2 2024, the average daily rental cost was $42, and most travelers sought four-day rentals, according to Hopper.

The rental rate can vary depending on various factors such as the rental company, car type, and pickup and drop-off location.

According to Allianz Travel, the daily rate of a rental car can increase by $30 to $61 due to insurance type, as per MarketWatch data.

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Renters may not need to purchase extra car insurance from the rental company.

Car owners may have coverage through their own car insurance policies or credit-card benefits, according to Brannon.

"Don't double insure your vehicle if you don't need to, as it can save you a lot of money. Check your coverage with your insurance agent."

Depreciation and mileage caps on leases

Before embarking on a long road trip, car owners who lease a vehicle should consider mileage caps and the potential financial penalties associated with exceeding them, as stated by Kelley Blue Book.

A driver would pay $300 for every 1,000 miles over the mileage limit, according to KBB, with the cost typically ranging from 20 to 30 cents per mile.

There are also depreciation costs to consider.

Cars lose value over time due to depreciation, with a typical loss of 10% to 15% occurring immediately after purchase, according to Brannon.

Owning a vehicle entails the largest expense, which is depreciation, according to Brannon. This makes it crucial for road trips.

As miles accumulate on a vehicle, its value decreases, Brannon stated.

According to Allianz, every mile driven puts wear and tear on the engine, tires, and other moving parts.

All cars are affected differently by depreciation, with an average rate of 20 cents per mile, as stated by Toyota.

Rental prices may be more significant than depreciation for shorter road trips of 1,000 to 1,500 miles per year, according to Autotrader's Moody.

People who plan to sell or trade in their vehicle in the future are the ones who typically need to consider depreciation.

State of the vehicle

The cost of unforeseen repairs on the road can exceed $500, according to Brannon, based on AAA data.

Rental cars are generally newer models, which reduces the likelihood of breakdowns, Moody stated. On average, used cars on the road are about 12 years old, he added.

Renters wouldn't be financially liable for a mechanical issue while on a road trip, as long as they're not at fault, Moody stated.

Brannon suggests some questions drivers should consider: Have I kept up with my car's maintenance? Is it suitable for extended road trips? Are my tires in good condition? Is the vehicle reliable mechanically? How old is it? What safety features does it possess?